New 60GB Xbox 360 announced, cheaper 20GB version

Microsoft has announced that it willbe producing a new $349 60GB Xbox 360, and the 20 GB version that itwill slowly replace will be cut in price in the US to $299.
AlthoughUK price changes have not been published, the arrival of a new 60GBversion – giving users much more memory for things like movies,trailers and Xbox Live Arcade games – is in keeping with Microsoft'spush into downloadable content.
"We know consumers need moreand more space to store the amazing digital content Xbox 360 offers,and we're giving it to them at no extra charge," said Albert Penello,Xbox director of product management at Microsoft.
"No onedevice offers the depth and breadth of entertainment that Xbox 360 candeliver, and now you'll have three times the storage to manage all thatgreat content."
What does it mean for UK?
The20GB version of the Xbox 360 – normally known as the Pro – currentsells for £199.99, and it seems likely that the news 60GB version willretail for the same price when it hits UK shelves.
This meansthat the older 20GB version will be given a price reduction, althoughit remains to be seen how close that will be to the Arcade version(with a much smaller storage capacity) which is currently priced at£159.99.
Microsoft's support of the now-failed HD DVD drive has meant a shift of focus onto downloadable HD (and SD) content.
Thesuccess of Xbox Live Marketplace has buoyed the console, and the offerof extra storage to boost these services makes a good deal of sense.

Prices for all other models remain unchanged, so that’s $279(£141/€176) for the Arcade (that’s the one with a 256MB memory card)and $449 (£226/€283) for the Elite – the flagship model with anintegrated 120GB HDD.
Although the leaked email said the new machine would be called thePro, Microsoft’s official announcement of the 60GB model didn’t use anysuch uplifting title.
The bad news is that – at least for the time being – the 60GB Xbox360 will only appear in the US and Canada when it goes on sale nextmonth.