After weeks of rumour, speculation and semi-official murmurings, Microsoft has, at last, announced the expected price cut on the Xbox 360.

The American giant is cutting $50 from all its Xbox models as of August 8.

That means that the core unit will now be priced at $279.99, the Premium at $349.99, and the Elite at $449.99.

Mitch Koch, corporate vice president of Global Retail Sales and Marketing Group for Microsoft said, "The fact that we have been able to keep our launch price longer than any other console while retaining our leadership position demonstrates that consumers believe in the value of Xbox 360".

"On the eve of the best holiday games line-up ever and the launch of Madden NFL 08, there has never been a better time to jump into Xbox 360."

Despite the good news for US gamers, there's been no word on whether the Euro zone will see any love from Microsoft. Speaking to Gamesindustry.biz a Microsoft spokesperson said, "This announcement was specifically around pricing in the US. We have not announced any pricing changes in Europe".

Anyway, the price announcements haven't stopped with the three units mentioned above as Microsoft has also said that the Halo 3 Special Edition will retail in the States for $399.99 in September when the game is released.