IT'S a good time to buy an Xbox360 as Microsoft has announced a price cut as well as the local availability of the new black Elite edition.

The original white Xbox 360 has just got a $55 price cut from $675 to $620. You get the usual 20GB hard disk, wireless controller and headset.

Hardcore gamers will be more interested in the $799 Elite model launching here on 13 Aug. It features a 120GB hard drive, black wireless controller as well as easier connectivity to the television with a high-definition multimedia interface (HDMI) jack.

The HDMI cable transmits both hi-definition video and surround sound audio signals, so it makes for less messy wiring around the house.

Also, if you love downloading new trial games and videos from Xbox Live Arcade, the larger hard disk (also available separately, price unavailable) is really quite necessary.

The price cuts are meant to counter the Sony PlayStation3's price cuts in the US and inevitably later in the rest of the world.

The 60GB PlayStation 3's price in the US is now US$500 ($758) while the Xbox 360 Elite is now priced at about US$450.

The price cuts may also help do damage control for Microsoft as it had to announce a repair bill of more than US$1 billion to fix Xbox360 consoles with sudden hardware failure.

And of course, it's just in time for the September launch of the much anticipated Halo 3 shooter game too.