Lending further credence to last week's leak of a possible $50 price cut for the Xbox 360 Premium, scans of an upcoming ad flier from electronics retailer Radio Shack have also listed the console at a $299.99 price point.

According to Joystiq, the scans were sent by a Radio Shack employee who claimed that the new price is to take effect on July 13. The Premium version of the Xbox 360, which includes a wireless controller and 20GB hard drive, presently retails for $349.99.

Moreover, the Hollywood Reporter claims to have confirmed the price cut with industry sources. The price reduction is said to be planned for an official announcement before next month's E3 Media and Business Summit, which kicks off on July 15... Read more

Update: A full-page shot of the K-Mart flier (pictured left) apparently revealing a $50 price cut for the Xbox 360 Premium console has appeared on Joystiq, sent to the website by a second, unspecified source.

Contrary to information reported yesterday on High-Def Digest's forums, Joystiq's source claims that the flier will be distributed on Sunday, July 13, the week of the E3 Media and Business Summit.

Original Story: The Premium version of Microsoft's Xbox 360 console may see a price cut from its current $349.99 retail price to $299.99 next month, according to scans of an alleged flier from retailer K-Mart.

Arising on the High-Def Digest's forums, the listing appears in a K-Mart sales advertisement aimed for distribution on July 6, the week before the E3 ... Read more

GameStop COO Dan DeMatteo anticipates shortages of the Nintendo Wii to continue for at least six months, MCV reports.

Speaking on an investor's conference call about inventory expectations in 2008, DeMatteo stated that he expects the retailer's supplies of the Nintendo Wii to fall short of demand for "the next two quarters at the least.

"Supplies have continually improved," DeMatteo added. "But we still don't know when supply will meet demand for the Nintendo Wii as they continue to sell out as soon as they hit the shelves."

Keeping up with outrageous demand for the Wii has proven difficult for retailers. Across the year of 2007, there were only three instances when the Wii and the Nintendo DS were not the month's top two best-selling pieces of hardware in North America.

GameStop CFO David Carlson added that the company also expects substantial price cuts for consoles in the coming year. "We've assumed a couple [of price cuts]," Carlson said. "The Xbox [360] and the PS3 have a $50 price cut sometime in the year. We have no knowledge or verification of those, but that's just the assumption we have used."

Confirming recent rumors of a price drop, Microsoft has announced that it will be lowering the price of all European Xbox 360 hardware by 80 euros/£40-50.

Effective this Friday, March 14, the cut drops the estimated retail price of the hard disc drive-lacking Arcade unit to 199.99 euros/£159.99, with the 20GB HDD-equipped Xbox 360 priced at 269.99 euros/£199.99. The Elite Xbox 360, which includes a 120GB HDD, will sell at 369.99 euros/£259.99.

Under the new prices, the Arcade unit is cheaper than a Nintendo Wii, which carries an ERP of 249.99 euros/£179.99.

Though the slash brings the prices of European Xbox 360 hardware much closer to those of the United States, the difference between the two, in the words of Shacknews editor Maarten Goldstein, "is still grossly unfair with the current euro/USD rate."

Going by today's euro/USD exchange rate, the new price of the Arcade unit, which has an MSRP of $279.99 in the United States, translates to $307.11. Compared to US MSRP of $349.99, the price of a European Premium unit will be $414.58, with the $449.99 Elite going for $568.14 in Euroland.

MCV is reporting that an unspecified source has confirmed a price cut for Microsoft's Xbox 360 hardware in the UK later this month.

MCV's source could only specify the cut for the Arcade version of the hardware, which will reduce the hardware's current cost of £199 to around £170, to make the system more competitive with—and possibly cheaper than—Nintendo's Wii console.

By way of corroboration, TechRadar reported a similar story, claiming that numerous retailers have indicated a price cut of 50 euros off every hardware version of the Xbox 360 across Europe. Sources say that the cut is scheduled for enactment on March 14.

The rumors follow an Xbox 360 price cut in Canada late last month, which saw prices for the Premium and Elite editions of the console CAD$50 cheaper, and the Arcade version reduced by CAD$20.

Microsoft has announced more details of the upcoming Xbox 360 fall update, the free download that will add new functionality and features to the system when it arrives next Tuesday, December 4.

Along with the Xbox Originals program and increased social networking, the company promises "enhanced video codec support" for MPEG-4 Part 2. "Our users should find that most of their DivX and Xvid files will work because they're under that umbrella," Microsoft's Aaron Greenberg told Joystiq.

The company has provided a table specifying video formats supported by the Xbox 360. More technical details on video playback are available official blog of the Xbox development team, which also supplies complete details of the forthcoming update. It had been widely rumored that support for the DivX codec would be added to the system, especially since that functionality was recently confirmed for the PlayStation 3.

Another change is that Microsoft will permanently lower the price of several Xbox Live Arcade titles as part of its new Arcade Hits initiative. Included ... Read more

An FCC filing uncovered by DailyTech may lend credence to the non-stop rumors of a $399 PlayStation 3.

Listed as model number CECHG01, the FCC-tested hardware revision features standard PlayStation 3 staples, including Bluetooth and WiFi. Interestingly, the FCC only mentions two USB ports--it's not known if the FCC only tested two USB ports or if the new hardware cuts the PlayStation 3's existing USB ports by half.

Earlier in the month, Sony raised $2.9 billion by selling off a percentage of its insurance unit--a move some analysts interpreted as preparation for an impending PlayStation 3 price cut. Many in the industry feel that Sony needs to once again reduce the hardware's price in order to compete with Nintendo and Microsoft's offering of cheaper units and more games.

Unfortunately, the FCC neglects to mention the size of the hard ... Read more

Wedbush Morgan Securities analyst Edward Woo told Bloomberg Thursday he expects to see another PlayStation 3 price drop after the 60GB model has been phased out.

Bloomberg spoke with Woo after confirming with Sony that the 60GB PS3 SKU would no longer be sold in the U.S. after the current inventory runs out. This makes manifest the remarks of SCEE president David Reeves shortly after the U.S. PS3 price rearrangement.

Sony would not comment on the price drop, but told Bloomberg that supply of the 60GB PS3 SKUs would probably last through October.

A price cut after the 60GB phase-out would seem likely, otherwise Sony's only price-point would be at $599. Though like the last "price cut" that finalized the phase-out of the 20GB model, the move isn't likely to bring the base price of any SKU below $499.

The PS3's first price drops took place at the beginning of the month, with the 60GB SKU dropping to $499, and a new 80GB SKU with a copy of Motorstorm totaling $599.

Update: Reports of an imminent Xbox 360 price cut have solidified with the appearance of alleged Circuit City flyers depicting not only a $50 cut to the standard $399.99 unit, but also a $20 cut to the $299.99 Core model and a $30 cut to the $479.99 Elite model. The move would keep the lowest-tier Xbox 360 above the price of a Wii, contrary to expectations of some.

When contacted for comment, a Microsoft representative responded, "We have no announcements to make on pricing at this time." On reports of the company allegedly phasing out the Core model, the rep stated, "Xbox 360 Core remains an important member of the Xbox 360 family."

Original story: Microsoft's Xbox 360 console will drop in price soon from $399.99 to $349.99, according to leaked images of newspaper ads set to run the weekend of August 12, as collected by Cheap Ass Gamer. The ads from Wal-Mart and Toys "R" Us indicate the price cut as affecting only the standard version of the console, not the Core version selling for $299.99.

Plans for a $50 price cut were revealed earlier this month in a story by The Hollywood Reporter. Several analysts expected Microsoft to drop the price of the console during its press conference at E3.

Following confirmation of a PlayStation 3 price cut, several industry analysts are indicating they are expecting Microsoft to follow suit, despite the Xbox 360's sales lead.

Michael Pachter of Wedbush Morgan Securities was the most optimistic in his predictions, saying that he expects Microsoft to drop the price of the Xbox 360 Elite from $479 to $399, the Premium from $399 to $349 and the Core from $299 to $249.

In his note to investors Pachter mentioned "While the Elite has a 120GB hard drive and HDMI cables, it does not have WiFi built in nor does it offer Blu-ray playback capability, with both standard features for the PS3. Similarly, we think that the $499 PS3 compares quite favorably with the $399 Pro 360 model, which has only a 20GB hard drive and no HDMI output. Because of this favorable comparison, we believe that Microsoft is all but compelled to cut prices"

Other analysts are also expecting a price drop on one or more SKUs, between $50 and $100. According to Pachter, Microsoft will be announcing the price drop at their Tuesday night E3 press conference. Shacknews will be covering the event live.

Sony Computer Entertainment America today confirmed the much-rumored price drop for its PlayStation 3 console. Beginning in August, the 60GB PS3 will sell for $499 in the United States and CA$549 in Canada, down $100 from its original US price. The 60GB system will occupy the price point formerly held by the now-discontinued 20GB launch model.

In addition, the company announced a new $599 SKU for the system. The $599 model will include a larger 80GB hard drive and a copy of Evolution Studios' Motorstorm.

The price cut on the 60GB PS3 had been denied previously by Sony president Ryoji Chubachi.

In an AP story, Sony spokesperson David Karraker touched on the company's goal for this week's E3 event. The company's focus during the show will be on "ways to increase the number of consumers who own PS3s and other products such as the PlayStation Portable handheld system, and expanding the system's library of available games," according to the report.

In today's announcement, Sony claimed it more than 120 new video games will be released for PlayStation 3 in North America during the current fiscal year ending March 31, 2008. Among them will be 15 PS3 exclusives.

"As we move into the next phase of PS3, it's important that we continue to evaluate our product line, offering consumers the technology and features that meet their growing needs for new forms of media and the way in which it is delivered," said SCEA president Jack Tretton.

Update: Speaking to Bloomberg, Sony president Ryoji Chubachi has repudiated claims of an upcoming PlayStation 3 price drop. "We have no immediate plans as of now," said Chubachi in regard to the reports. The statement contradicts an alleged confirmation of an overall $100 retail price drop by a retail manager, as reported by GameDaily yesterday.

It is possible that Sony indeed plans to launch a price adjustment in the near future, but hopes to keep the news under wraps until its press conference at E3 in Santa Monica next week. Circuit City's own discount, effective July 15-21, appears to remain valid.

Original story: A Circuit City advertising flyer showing an upcoming $100 discount on PlayStation 3 consoles may in fact be a retail-wide price adjustment by Sony, suggests internet reports today.

Rumors originated from scans of the ad, which lists the console with a price point of $499.99 as of July 15. "$100 price break," it reads. No mention was made of the 20GB PlayStation 3 model, available at launch but recently dropped entirely from certain territories including North America.

GameDaily followed up with claims of confirmation of a retail-wide $100 price drop as of July 12, which it sources to an anonymous... Read more

A new interview with Sony CEO Sir Howard Stringer (pictured left) has the executive acknowledging the importance of a price drop for the PlayStation 3, revealing that current PS3 games only use 20% of the system's bandwidth, and praising competitor Nintendo's strategy with the Wii.

"I think that the public would like the cost [of the PlayStation 3] to be lower, there's no question about that," Stringer admitted to The Financial Times, noting Sony is researching cost-cutting measures for the $599 system.

"PlayStation 3 is following a particular trend of 1 and 2, and if you ... Read more

Strong sales of the affordable Nintendo Wii are putting the screws to console opponents Microsoft and Sony.

Rumors of price cuts to the Xbox 360 and PlayStation 3 have increased in number over the past few weeks. While Sony has been tight-lipped regarding its pricing plans, rival Microsoft now says it's time for a new approach.

"We are well aware that the sweet spot of the market is really 199 bucks," said director of Xbox product management David Hufford to Bloomberg. The Sony PlayStation 2 is currently priced at $129, and managed to outsell all of the next-generation consoles last November, despite the launch of the PlayStation 3 and Nintendo Wii that month.

"When mom walks into the store and sees she can get a console... Read more

The major Intel CPU price cuts are in and if you've been waiting around for that CPU upgrade it's about as good of a time as any. Cuts by as much as almost 40% on some chips. Sassy.

Tech Report reports on the latest AMD CPU price cuts, which has almost all Athlon 64 X2 chips (the exception being the 6000+) under $200 now. There are also hefty cuts for the Athlon 64 FX-74 ($799 from $999) and FX-72 ($599 from $799).

The 4D Rulers website has another news update, this time announcing that AMP II engine prices have been cut. A commercial license is now available for $1000, while personal licenses are available for $99.

DailyTech has this story up with a table showing planned price cuts for AMD processors. As expected, these cuts are massive, with a $649 Athlon 64 X2-5000+ AM2 soon going for $282, a $522 Athlon 64 X2-4600+ AM2 going for $224 and many other top-of-the-line Athlon CPUs becoming close to or more than 50% cheaper as well.

According to this Bloomberg story, Intel has told several motherboard manufacters that it will be cutting prices on its Pentium CPUs in an effort to regain market share lost to AMD. Prices will be cut by as much as 60%.

Tech Report reports on AMD's most recent price cuts, which discount the Athlon 64 X2 lineup by up to 20%. Linked in the story is this bit from The Inquirer, where they report that there will be some dramatic price cuts for Opteron 200-series CPUs soon.