Microsoft dropped the price of the Xbox One to $299 from $349 only two weeks ago, but the software maker is further reducing the console today. Bundles for the basic 500GB machine are now $279, an additional $20 discount. Microsoft says the latest "promotional" price will run until October 1st.

The latest price cut comes just a day after Microsoft unveiled its Xbox One S at E3. The new console is 40 percent smaller than the existing model, and includes a 4K Blu-ray player and Bluetooth controller. It's clear that the discounts are designed to clear out existing stock of the current Xbox One model ahead of the Xbox One S release in August. Microsoft also unveiled its Project Scorpio console which will succeed the Xbox One and Xbox One S in the fall next year, with improved graphics and performance.