After all the rumours and leaked adverts, Microsoft has confirmed a price cut for the Xbox 360 in Australia.

The 360 Arcade model will now retail for AU$50 less at AU$349 (£169), the Premium console with 20GB hard-drive will sell for AU$499 (£240) dropping from AU$579, and the high-end Elite SKU will cost AU$649 (£313) saving AU$80 on its previous cost.

This move now prices the Xbox 360 the cheapest of the three home consoles in the country, with Nintendo's Wii priced at AU$399 (£192) and Sony's PlayStation 3 at AU$699 (£337).

The Australian price cuts have obviously thrown up the question of whether this is the beginning of a global Xbox 360 price cut in time for E3. Unfortunately, Microsoft's Australian team refuses to acknowledge any other territory price cuts, but we think they may well be on their way. Watch this space.

>> News - Xbox 360 prices cut in Asia
>> Via - Xbox Fanboy