Citing a Taiwanese OEM component maker, Digitimes is reporting that Microsoft is planning to cut the price of their premiere Xbox 360 console to $300.

Msoft Taiwan denies the reports, claiming that it is bad information, but Digitimes says their sources have confirmed the price cut and that Microsoft has negotiated reduced production costs for the console to gear up for the reduction.

The manufacturers estimate that the total production cost can be reduced by 15-20% due to diminishing costs for most components along with increasing production scales and decreasing defect rates, the sources pointed out.

The article goes on to state that part of the reasoning behind the price cut is so Microsoft can bundle the HD-DVD player with the console for $399 down the line.

This sounds very fishy to me. Why not just wait until you're ready to bundle to do the price cut? And why does Msoft have to be so much less expensive than the PS3 when including the HD-DVD? I'd think they'd just want to be the same price or a tad under. Thoughts? Brian Crecente

Microsoft Rumored to Cut Xbox 360 Price by $US 100 [Digitimes]
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