Microsoft announced this morning that it is lowering the price of the Xbox 360’s Elite model in both the US and UK by $100 and £30, respectively. Starting tomorrow, the 120GB Elite model will be available for $299.99 in the US and £199.99 in the UK.

The company also confirmed that the 60GB Pro unit is indeed being phased out as rumored and that its price has been reduced to $249.99 (a $50 decrease) in the US while supplies last (the UK’s announcement did not include a similar price cut). With the Pro on its way out, the only other SKU to keep the Elite company will be the entry-level Arcade which carries the lower-than-Wii’s price tag of $199.99/£159.99.

“With the holiday season right around the corner, it’s already time to start looking for entertainment and gifts that everyone will enjoy,” said Shane Kim, Microsoft’s Interactive Entertainment Business’ corporate vice president of strategy and business development. “If you’re looking for deep experiences that don’t require deep pockets, now is the time to purchase an Xbox 360. We’ve got the best games, a vast library of TV shows and movies, new music experiences, more ways to connect friends and family, and so much more on the horizon including ‘Project Natal’ — no controller required.”

The Elite’s new pricing means that Microsoft’s premium SKU and Sony’s PS3 are now both at $299 and the holidays, it feels like, are just around the corner. Interesting times ahead, eh?