Source: See below.
What we heard: Enough already. After weeks of speculation and numerous retail leaks, snowballing rumors of an imminent Xbox 360 price cut have reached avalanche-sized proportions. Adding further weight is a scan sent to tech blog Engadget of a purported flyer from retailer Target announcing both the 60GB Pro and 120GB Elite models will be discounted to $249, and $299, respectively. The ad was quickly followed by a subsequent photo reportedly from a Best Buy flyer sent to gaming blog Kotaku showing identical price drops.
The new ads come just days after Engadget posted another $299 Elite flyer, purportedly from Wal-Mart. That ad appeared to confirm the new Elites would not ship with either an HDMI or component video cable. The newer scans, though, do not indicate what is inside the Elite boxes but do say it will come with a free controller when purchased at Target.
None of the leaked flyers confirm rumors that the Pro will be discontinued. However, another image sent to Engadget appears to back up earlier reports that the Pro model has vanished from the Elite's new packaging, auguring its imminent demise.
The official story: "Microsoft does not comment on rumors or speculation." -- Microsoft spokesperson.
Bogus or not bogus?: Not bogus. Though earlier flyers have been obvious fakes, the Target and Best Buy ads appear to be legit, and the sheer volume of leaks is only given further weight by Microsoft's stony silence on the subject. With the question of "if" all but answered, it is now a question of "when," with the timing of the flyers--typically included in Sunday newspapers--pointing to August 30.