Official Xbox Magazine reports that sources at Australian retail chain Myers have leaked Microsoft’s plans to launch the suped-up console just in time for the launch of PS3 in an attempt to deflect attention from its bitter next-gen rival.

The rumours suggest that the special edition console will retail for AUS$749, which works out as around £295. The sources even suggest that the ‘new’ console has even been demoed to them. The speculation is also all over the Xbox forums, with one poster insisting:
 
“Just got back from another product knowledge day and official word from Microsoft is that there is a black 360, (black controller too) with HDMI and a 120GB hard drive coming out here soon, for $749. Probably around April, but possibly late March to take on the PS3 launch.”

It is a further hint at the long-standing rumours of a newly improved 360 model that will include a HDMI port and that hugely expanded hard drive.

When MCV contacted Microsoft about the rumours, the firm’s spokesperson could neither confirm or deny the rumours.

“We haven’t announced such a product,” he told MCV. “What we have delivered is the most powerful and affordable video game system on the planet today. And with games like Halo 3, Guitar Hero 2, Mass Effect, Grand Theft Auto 4 and Forza Motorsport 2, the story of the year on Xbox 360 is the games, not the hardware.