Microsoft Just Dropped the Price on the Xbox One, But There's a Catch

Microsoft recently announced a price drop for the Xbox One. However, if you think this is the deal you've been waiting for, think again. It might seem like a great time to buy a new console, but with newer versions in the works, that's not necessarily the case.

Now Lower Prices on All Existing Models

The good news is that the price drop applies to all existing Xbox One models, across the board. A 500GB model will now cost you $299. But for only $20 more, you can opt for double the storage with the 1TB model. And if you want a bundle, the price drop covers those as well — they're due to receive a $50 price cut.

Expect a New Xbox One Soon

Microsoft is purportedly preparing to announce a new, slimmer version of the Xbox One at E3 conference later this month. It's rumored to be 40% smaller, and could also have a 2TB hard drive — possibly at the expense of the old version's Blu-ray player.

However, Microsoft is also supposedly working on a more powerful Xbox One model right now, codenamed "Scorpio". With two potential new versions of the console in the works, it's no surprise the price on the original is dropping now.

Even Lower Prices on the Horizon?

With the slimmer version being announced soon, prices on the original could take a dive in the coming months. In fact, clearing out the old Xbox Ones could be a major part of Black Friday and Cyber Monday deals. And last year's prices were nothing to sneeze at.

During last year's Black Friday sales, we saw 500GB consoles offered with various gift cards, including one bundled with a $60 gift card for $299. Factoring in the credit, that deal yielded a savings of $60.

Considering last year's plethora of gift card combos, and the $50 price cut Xbox One bundles are due to receive now, we could see some bundles offered at an equivalent price of $200 or less during Black Friday 2016.

SEE ALSO: Amazon Just Made it So Much Easier to Get a Great Discount on Video Game Preorders

We've Seen Better Deals in the Last Few Months

Even without the expected slashes of the holiday season, we've seen better Xbox One deals than the new $299 price point. Just last week, you could snag a refurb 500GB console for $190, though there were no games included with that. However, that's not to say we haven't seen any good bundle deals lately — we definitely have.

In March, we saw a refurb 500GB console bundled with three games for $214. However, that same month we saw a new 500GB console Gears of War bundle surface at $259, and that deal has continued to come and go during the last couple of months. Then in April we saw a new 1TB Gears of War bundle for $289. Even within the last few weeks there was a new 500GB console bundled with a game and a $50 gift card for $297.

In many ways, this latest price drop from Microsoft isn't so great on its own. But if it yields even bigger Xbox savings than what we're seeing now, shoppers can expect some hard-to-beat offers in the coming months.

So readers, what do you think? With newer Xbox One models coming out, will you buy the original one now? Or will you hold out for a slimmer, or more powerful model? Sound off in the comments below!