It seems that Microsoft is reacting to the increased competition from Sony and Nintendo for the upcoming holiday season. In anticipation to Sony’s forthcoming price reduction for its PS3 Microsoft will be releasing two Xbox 360 console and game bundles before the end of the month. The Pro Xbox 360 bundle pack ($349) will consist of an Xbox console (20 GB version) and copies of “Forza Motorsport” and “Marvel: Ultimate Alliance” while the 120 GB HDD Elite 360 pack ($449) will ship with the same two games. Essentially you will be getting two free games when you lay down your dollars for either one of these two systems. Microsoft also probably is hoping that the good will generated will in turn get you to open your wallet further and maybe pick up a copy of “Halo 3″ while you’re standing in line.

Early shoppers take note: both new Xbox 360 console/game bundle packs will be in stores before the end of the month.