Following numerous rumors of a cheaper Xbox 360 bundle due out in time for Christmas, the official announcement has finally arrived, revealing not one, but two such bundles, packed with free games and becoming available by the end of the month. You're probably wondering what the two bundles include. Read on and find out.

"Xbox is rewarding holiday console buyers this season with two free games! Hot on the heels of a price reduction for all Xbox 360 consoles, Microsoft is now giving holiday buyers even more value by including two great games with every Xbox 360 console and Xbox 360 Elite, a retail savings of $90," says the official report posted yesterday on xbox.com.

According to the same report, there will be a Premium bundle and an Elite bundle. The first pack comes at an affordable $349.99, bundled with Forza Motorsport 2 and Marvel Ultimate Alliance, while the second pack, sure to make the delight of hardcore gamers, has been priced at $449.99, as buyers will find an Elite with 120GB of HDD memory and HDMI, bundled with the same two games inside the package.

It's no secret that Microsoft is only answering its competitors in reducing the price on their system in time for the holiday season, but even if Sony hadn't cheapened its PS3, offering fans a 40GB model of the console for $399, Microsoft still would have been forced to make such a move, as the Xbox 360's library of titles is only just widening this time around, with games like Halo 3, Project Gotham Racing 4, Mass Effect, Guitar Hero III: Legends of Rock and Call of Duty 4: Modern Warfare.

At least three of the upper mentioned games are bound to sell some systems and so the future looks pretty bright for Microsoft and the companies involved with producing games for the 360.

Now remember that by the end of October, both the Xbox 360 Premium bundle ($349.99) and the Xbox 360 Elite ($449.99) will be available at game retailers, packed with two of the most popular next-gen games today, Forza Motorsport 2 and Marvel Ultimate Alliance.