Microsoft will release two versions of Xbox 360, one priced at $299 and one at $399, when the system launches later this year, according to the LA Times.
The US publication reports that the $299 version will not feature the wireless pad, 20Gb hard drive, headset, Ethernet cable and wireless remote control included in the premium version.
A European announcement is likely to emerge from the Leipzig Games Convention later today.
A Microsoft spokesperson was unavailable for comment.
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