It’s official, boys and girls. The Xbox 360 Pro model is now $299 and is being phased out in favor of a new SKU with more storage space, according to a news release sent out by Microsoft.

Rumors of a price cut have been flying all week, and Target made it official from a retailing standpoint earlier today. But today’s Microsoft press release is the first confirmation we’ve heard about a new SKU.

The 60 GB model will retail for $349, which the Pro model previously sold for. The Elite model, which comes with a 120 GB hard drive, remains at $449, and the Arcade SKU, which has no hard drive, is still $279.

“We know consumers need more and 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 one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you’ll have three times the storage to manage all that great content.”

The new 60 GB model will be available in early August, Microsoft said, and the discounted Pro will only be available “while supplies last.”

IGN