If you know anything about the gaming industry, you’re aware that E3 is the time for a company to make their big announcements. But nobody told Microsoft this apparently, because today they went ahead and announced the rumored $50 price drop for the 20GB Xbox 360, bringing it down to $299. Microsoft didn’t stop there however, as they also unveiled a new SKU, a 60GB Xbox 360 to take the old price point of $349. One bit that is a tad unsettling however is that Microsoft says the 20GB SKU has the reduced price “while supplies last”. Now while that statement doesn’t officially mean anything, it sounds to us like they’re going to discontinue the 20GB model and are just looking to get rid of the remaining stock.

You can expect to find the new 60GB Xbox 360 in US & Canadian stores in early August. No word on when it will roll out in other regions, but we suspect that it will just be a matter of time before that announcement is made.

These new price changes will not affect the Xbox 360 Arcade and Xbox 360 Elite units, which will remain at $279 and $449 respectively.