MS dropping Xbox 360 20GB to $300 ahead of E3?

Microsoft is poised to lead off E3 by cutting the price on its Xbox 360 Pro console, according to a flyer spotted by a forum user. A Kmart ad for the week of July 6th claims the 20GB console will sell for $300, or $50 less than its current asking price; the drop doesn't indicate a sale or any other form of temporary discount. The feature set appears to remain the same as for the existing console.

The flyer fulfills predictions of a pre-E3 price cut by one analyst but doesn't address how Microsoft will accommodate the rest of its console lineup. The Xbox 360 Arcade is particularly affected and costs just $20 less than the price-reduced Pro model, suggesting either that Microsoft will drop the Arcade price further or scrap the model entirely. The cut would also leave a $150 gap between the Pro and the 120GB Elite model that is also likely to face either a price cut or a hardware upgrade.