As previously speculated, MSNBC reports that Microsoft will cut the retail price on the Xbox 360 by $50 - that's for the model with a 20GB hard drive.
"The company said its most popular console, which comes with a 20-gigabyte hard drive, will cost $349. A basic console without a hard drive or wireless controllers will retail for $279, $20 less than its current price, while the Xbox 360 Elite, a black version with a 120-gigabyte hard drive and high-definition video support, will drop $50 to $449.
The official press release is on xbox.com here.
"Microsoft today kicked off the greatest holiday lineup in videogame history by announcing it will reduce the retail price of Xbox 360™ by $50 beginning August 8 at United States retailers nationwide. Soon to follow, Electronic Arts Inc. (EA) will release its blockbuster video game title Madden NFL 08 on August 14. This important mass-appeal franchise was the top-selling game of 2006 and is the top-selling franchise of the past 10 years. Only Xbox 360 offers a console for all interests and budgets.
"... Xbox 360 Core System now has an estimated retail price of $279.99... [and the] 120GB hard drive, Xbox 360 Elite will be priced at $449.99. The Xbox 360 Halo 3 Special Edition Console [with 20GB hard drive] will hit store shelves in September with a price of $399.99."