Microsoft’s holiday offer will be the same this year: Xbox 360 bundles with free games. The bundles with free games are being shipped to retailers as we speak, according to a report from game weblog Talk Xbox.

The Xbox 360 Elite ($399.99) and Xbox 360 Pro ($299.99) will come bundled with copies of LEGO Indiana Jones and Kung Fu Panda at no extra cost. Meanwhile, the Xbox 360 Arcade systems ($199.99) will come with free copies of Sega Superstars Tennis in addition to the already existing compilation. The offer for the latter will be the same: no extra cost.

Microsoft raised sales forecast of its Xbox 360 in Japan after it surpassed Sony's PlayStation 3 stranglehold on the gaming market. The company said its sales are so good in Japan that it is running low on supplies.

"We've done better than we forecast," John Schappert, corporate VP of Interactive Entertainment Live, Software and Studios.

"We are finding that we have a shortage of hardware," he added according to Reuters.

The news of the holiday offers came a month after Microsoft cut prices on its video gaming consoles. The company brought the Elite down from $449 to $339, the Pro from $349 to $299, and the Arcade from $279 to $199.

Microsoft also plans to give its devoted customers a treat. In November, the company will launch its "New Xbox Experience" update which will reportedly provide Netflix integration to its Xbox Live users. The new feature enables users to watch streaming movies and TV shows through their Xbox 360s.