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.