A fresh rumor is circulating that the Xbox 360 is set to experience a more significant price cut as the Holiday seasons draws in. The latest rumor notes that with the new 65nm processor falcon techniques, the core will drop to $249, the premium will go down to $299 and the Elite will go as low as $399. They will all have a redesigned motherboard as well as HDMI across all SKUs, quieter drives and also an extra heatsink.

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When the 65 nm processor falcons are introduced across all SKUs, the holiday season, a month or so after Halo 3 will see the core drop to $249, The Premium will drop to $299 and the Elite will drop to $399

The Core, Premium and Elite Falcons will have a redesigned motherboard which includes HDMI across all SKUs, a quieter DVD Drive and the falcons will STILL have an extra fan heatsink as Microsoft is not prepared to take anymore risks.

The Falcon will reduce the cost to manufacture the Xbox 360 CPU and GPU by ~40-50% but Microsoft will incure additional costs on the new fans and HDMI across all SKUs. Still at the 249,299 and 399 price, Microsoft will expect a profit from the console by early 2008 when the Q4 results are announced.