Microsoft has tripled the amount of storage on its Xbox 360 with a 60GB version which will sell at the current price of the 20GB model.

The new unit will cost $349, while the 20GB will drop to $299 until stocks are depleted.

"We know that consumers need more and more space to store the digital content Xbox 360 offers, and we are giving it to them at no extra charge," said Albert Penello, director of Xbox product management at Microsoft.

Microsoft's Xbox 360 Arcade, which has no hard drive but includes a 256MB memory unit, will continue to sell for $279. The Xbox 360 Elite system will remain at $449.

The new console is due to hit shelves in the US and Canada in early August. There are currently no details regarding price or availability for Europe or other regions.