A user on the High-Def Digest forums has posted a scan of what is claimed to be an upcoming Kmart weekly ad, one that indicates a price drop will hit the Xbox 360 line-up the week before E3. The ad, purported to hit July 6, shows that the model that comes equipped with a 20GB hard drive, formerly known as the 'Pro' version, will be priced at $299 US. That's a $50 price drop from its current MSRP.
The ad scan doesn't indicate further price adjustments for the 'Arcade' or 'Elite' models, but with the lower end SKU currently priced at $279, we would assume that it will have to be adjusted somehow. Consider it rumor for now, but we'll be getting in touch with them to learn more.
Xbox 360 price cut is coming around July 6th, price will be $299.99 [High-Def Digest Forums via NeoGAF]