Microsoft E3 preview: Price drop anyone?

A preview of Microsoft's offerings at this year's E3.

Rumors are flying around about what will be announced at E3, yet little of this speculation has anything to do with Microsoft exclusively--until now. Not to be outdone by Sony's recent actions, at this year's E3, Microsoft is planning to announce a price drop on all three versions of the Xbox 360. Next-gen is reporting that the new prices will go as follows:

"The $299 Core pack will drop to $249; the $399 Premium pack will drop to $349; and the recently released $479 Elite model will drop to $399."

Also potentially showing its face at E3 is the keyboard attachmentfor Xbox 360 controllers Microsoft had hinted about, so we'd imagine to get more details on that this week as well. Also, don't be surprised if we finally hear more about the new 65nm processor Xbox 360's (now internally referred to as "Falcon" units) and when they will be available for purchase. These new chips allow for production costs to come down as well as lower the amount of power consumed by the console.

While new Microsoft hardware may be scarce at the show, a plethora of new games to enjoy on your Xbox 360 will be shown and announced. Here is just a taste of what E3 games you'll want to keep an eye out for:

Stay here for all of our E3 gaming coverage as the show kicks off tomorrow!

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