A major retailer has toldthe Hollywood Reporterthat the Premium Xbox 360 (20 GB) will be dropping in price to $299. The $50 price drop is set to take place right before E3 and will undercut the 40 GB PS3 price by $100.

In most cases, I really don’t like running Rumortoids, but the Hollywood Reporter didcall the lastXbox 360 price drop just a couple of weeks before Microsoft made theprice drop officialin August of last year. Plus, there are also the ads fromKmartandRadioShackshowing the Xbox 360 as $299, so it really looks like the price drop is going to happen.

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Think this is going to help Microsoft push more Xbox 360s this holiday season? Will this finally force Nintendo to drop the Wii’s price? How awesome is the header picture?

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