Looks like Microsoft found a way to solve the storage problem for Xbox 360 owners who don't have the necessary space to install the upcoming New Xbox Experience, which demands 256 MB of free space.

How does a free 512 MB memory card sound? Or a 20 GB hard drive for US$ 19.99? If sounds had flavors, then it sounds sweet. Details after the link.

Want more evidence to support the possibility of an Xbox 360 price cut? How about some pictures to go with it? If that's what you're looking for, then that's what we've got. Find out more after the jump!

*Update* We've gotten more word from a GameStop employee saying that the price drop is indeed real and will take effect at all GameStop (and possibly EB Games) stores on Sunday.

Major Nelson posts in his blog that they are aware that there are a number of people having issues with the Fall update of the Xbox 360 Dashboard.

He says that he has already spoken with the dashboard team and that an Updated version of the Fall Update is now available on Xbox Live. The updated update (we feel so bamboozled by this) has eliminated issues relating to new or refurbished consoles failing after applying the Fall Update.

Users who have already applied the Fall Update and are seeing an error message should call their local Xbox Support number. In case you have no idea what your Xbox Support number is, you can go to Xbox.com.

A couple of weeks ago, we featured the heartbreaking story of an Xbox 360 Fan Boy who was told to pay up if he wanted his console fixed. While it wasn't his fault, since his Xbox 360 was suffering from a manufacturing defect, he was told by an MS CSR that he has to foot the bill because his console's 90-day warranty has expired. Does that sound fair to you? If you said "no" you can do something else than shake your head.

There's an on-line petition calling for changes in Microsoft's warranty policy - mainly extending it from three months to one year. The petition was started after several Xbox 360 owners complained of running into console manufacturing defects months after the warranty period.  Here's the full text of the petition:

We the undersign believe that the MICROSOFT CORPORATION needs to revise the current length of warranty on the XBOX360 videogame system. At the present time XBOX360 owners within the United States of America are only protected by a three(3) month warranty period through the manufacturer(Microsoft). This length of time is not sufficient. The minimum warranty period should be one(1) year for all systems.

Our backing for this claim comes after large numbers of consumers who purchased systems, are now experiencing defects with the product. These defects cause the product to become un-operational. The company (MICROSOFT) has only been replacing system up to 3 months old with either a)new systems, or b) “refurbished” systems. After the 3 month period consumers are expected to pay between fifty(50) and One Hundred and Twenty-Nine(129) dollars for repairs. This warranty is outrageous, and is in place to protect the company and a product that is obviously inherently flawed. Many consumers have had units replaced 2 or more times, in some cases upwards of 5 to 7 times, within the past 8 months since the system launch.

We the undersigned are DEMANDING that MICROSOFT re-evaluates and amend the current warranty and make a new warranty retroactive so all past consumers are covered. At this time we are seeking replacement systems for ALL consumers who are experiencing defective hardware.

Signing the petition won't guarantee MS will have a change of heart. But if enough of you Xbox 360 Fan Boys get together, who knows? Isn't that how Coke fans brought the Coke Classic back from the cola graveyard? If you want to join this "fight" click on the 'Read' link below.