Reports Have Xbox 360 Dropping to $299

The Hollywood Reporter and other sources have Microsoft getting ready to slash $50 off the price of its Xbox 360 console in time for this month's E3 show.

Reports in The Hollywood Reporter and elsewhere, partially confirmed by sources in retail channels, have Microsoft getting ready to take $50 off the price of the 20 GB version of its Xbox 360 gaming console, dropping the price to $299 in time for this month’s E3 trade show.

Microsoft most recently dropped the price of its Xbox 360 gaming consoles in August 2007, hoping to drive purchases as the company prepared to release its much-hyped Halo 3. Microsoft doesn’t have a hotly-anticipated title like Halo 3 in store for the Xbox 360 this year, but a price cut should help the Xbox 360—which has been on the market since late 2005—compete better with the very popular (and less expensive) Nintendo Wii and Sony’s PlayStation 3, which is gaining sales momentum. After nearly a year at the same price point, industry watchers agree the Xbox 360 is about due for a price cut, if only to make it more appealing next to Sony’s more-expensive, Blu-ray equipped PlayStation 3 console.

A $50 price cut would put the 20 GB Xbox 360 Pro at $299, only $20 more than the Xbox 360 Core Arcade bundle, which is priced at $279. Microsoft’s Xbox 360 Elite console—with a 120 GB drive—currently carries a retail price of $449.

E3 is set to take place in Los Angeles from July 15 to 17.