Microsoft has confirmed that the Xbox 360 holiday bundle for the North American market will feature Halo Reach and Fable III this year for the 250GB system. The $299 bundle will also include a wireless controller, wired headset, and three months of Xbox Live for free. From what we understand, Fable III will be included on disc, while Halo Reach will be included as a download token.

For those that want Kinect, Microsoft will also be offering a Kinect bundle this holiday season. The $399 Kinect bundle will feature a 250GB Xbox 360, a single wireless controller, Kinect, wired headset, Kinect Adventures, Carnival Games: Monkey See Monkey Do; and, of course, three months of Xbox Live.

Microsoft is apparently expecting strong sales of consoles this holiday season, but there has been no price drop as many have expected. Analysts tell us that the console is selling well enough at the current price that there is no real reason to drop the price, but sweetening the deal with some add-ins could help move more consoles this holiday season.