Microsoft has announced it will reduce the price of its Xbox Elite console in North America from tomorrow.

The machine will be cut by $100 to retail at $299, but the Arcade pack will remain at the same price point.

Microsoft also announced the Xbox 360 Pro package, which features a 60GB hard drive, will be cut by $50 to $250. And the firm added the Pro model will be phased out once stock levels have dried up.

The bold move gives Microsoft a weekend start ahead of the launch of the PS3 Slim next Tuesday.