Incase you needed even more confirmation that the Xbox 360 is to receive a price drop, then here it is. According to a high level retail source the 360 will have three separate price drops across all SKUs in the form of $50 off for the premium the core will get $20 off and the Elite SKU will get cut by $30 all on August 12th. This is exactly the same price cuts as denoted in the Circuit City flyers (shown below) which circulated recently. Microsoft themselves have still failed to confirm the price cut officially, with analyst Michael Patcher believing they are prepared to lose money on the core and make a little bit on the Elite with the imminent price cuts.

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The rumors regarding the 360 price drop would appear to be true. The Hollywood Reporter previously said that Microsoft's console would get slashed by $50 right before the launch of EA's latest Madden game. At the time, however, it wasn't clear if the price cut was for all three of Microsoft's 360 SKUs (core, pro, elite).

Following a posting of a Circuit City flyer by our friends at Joystiq, GameDaily BIZ spoke to a high-level retail source (not at Circuit City) who did indeed confirm that the prices in the Circuit City flyer were correct and that the price reduction will be retail wide.

Effective August 12, the pro 20GB model will be slashed by $50 to $349.99. The elite 120GB SKU will receive a $30 cut bringing its price to $449.99 and the core SKU will get a price cut of just $20, making its MSRP $279.99.