Following rumors earlier in the month based on analyst reports, The Hollywood Reporter is now claiming a price cut to Microsoft's Xbox 360 is imminent, citing an anonymous source in the retail sector. The cut--supposedly to take place on August 8th--will amount to a $50 reduction, although no specific model of the system was indicated.

"From a hardware standpoint, holiday 2007 looks like a very opportune time for an [Xbox 360] price cut," said International Development Group analyst Jason Anderson to Shacknews. "I'm a little less certain though, because we had been expecting to see something on that front at E3."

Microsoft rival Sony last month announced that it would cut prices to the existing 60GB model of its PlayStation 3 console by $100 to a sum of $499 beginning this August. The company plans to eventually phase out the 60GB version of the PS3, as well as introduce a new $599 model that includes an 80GB hard drive and a copy of Evolution Studios' Motorstorm.

Anderson divulged that his firm had already factored an Xbox 360 price drop into its forecast models, but with the company's showing at E3 having gone without an announcement, he isn't sure what Microsoft has planned.

"I can't see any reason why [Microsoft would issue a price cut] before Halo 3," he added. "The counterargument would be, presumably your true hardcore Halo fans have already purchased an Xbox 360."

When contacted for comment, a Microsoft rep issued the following statement: "We have no announcements to make on pricing at this time."