Microsoft is cutting the price of its Xbox One console to $249. The new price marks the third price cut in less than two months, ahead of the new Xbox One S launch on August 2nd. 500GB versions of the Xbox One are now $249, and this includes bundles with games like Gears of War: Ultimate Edition, Quantum Break, Forza Motorsport 6, Rise of the Tomb Raider, and Rare Replay.

Retailers like Best Buy and Amazon will be selling Microsoft's Xbox One console at the new $249 price point immediately, and the software giant says the consoles will be available at $249 "while supplies last." Microsoft's aggressive Xbox One pricing follows a sales gap between its console and Sony's PlayStation 4. Sony has sold more than 40 million PS4s, but it's not clear exactly how many Xbox Ones have been sold as Microsoft hasn't provided sales figures for quite some time. EA previously revealed Microsoft had sold 19 million Xbox One consoles back in January.

Microsoft's Xbox One price drops over the past few months have all had end dates, but this latest price drop appears to signal a clearing of inventory ahead of the Xbox One S release on August 2nd. Microsoft's updated console is 40 percent smaller, and the redesigned hardware has been widely praised. With a new Xbox "Scorpio" console due next year, it's hard to imagine that Microsoft will continue manufacturing the original Xbox One hardware once stocks have diminished.