(Since Microsoft don't, and won't comment on "rumour and speculation", this one's still flying under the "RUMOUR" flag until we get official confirmation. Oh, and that's not a real picture of one of the consoles, it's for "illustrative purposes only")

There were whispers this morning that Australia was to see a new version of the 360 in March to help combat the launch of the PS3. Sound ridiculous? Perhaps, but calls to Myer department stores across the country have actually backed this up, with Myer staff letting me know that over the past week Microsoft reps have been over for tea, biscuits and a demonstration of the new units.

According to Myer staff the 360 itself is black, the controller is black and, probably most important of all, it comes bundled with a 120GB HDD (though any rumours flying around about HDMI also being included appear to be more than a little creative). It's going to be strictly limited edition, and will retail for AUD$749 (USD$584), which is $100 more than the current rrp for the 20GB Premium Pack.

Tack on the AUD$249 for the HD-DVD drive and you get...well, look at that, AUD$997, which is $2.95 cheaper than the PS3. Co-incidence?

In seeking official confirmation, Microsoft Australia will only say that:

We have seen all types of rumors like this appear on unofficial gaming websites and as a standard policy we don't comment on their speculation. Anything that is not announced on Xbox.com or in a press release issued by Microsoft is pure rumor and speculation.

Send an email to the author of this post at plunkett@kotaku.com.