This is the third price cut for the gaming device in the past couple of months. The news comes just ahead of Microsoft's planned Xbox One S launch on August 2. The Xbox One S is about 40 percent smaller than the original console, has redesigned hardware and will cost $299 in the US.
The $250 sale is good for any Xbox One 500GB console, including everything from the Gears of War: Ultimate Edition bundle to the Name Your Game bundle, Microsoft said Sunday.
The other device seeing a discount is the Surface Pro 4, but only the Core m3/128GB base model is seeing a $150 price cut.
The discounted Xbox One 500GB is available now at online retailers and the m3 Surface Pro 4 can be ordered through Microsoft.