Source: Pictures purportedly from an upcoming K-Mart newspaper flyer originally posted on the High-Def Digest forums.

What we heard: Last August, Microsoft's plans to drop the price of the Xbox 360 in all of its configurations were leaked four separate times. The Hollywood Reporter ran the news first citing retail sources, then Toys "R" Us, Wal-Mart, and Circuit City all had weekly newspaper ads that prematurely found their way into the public domain. Needless to say, by the time Microsoft finally confirmed the cuts, few considered the news to be especially shocking.

History may be repeating itself, given that the supposed K-Mart flyer clearly shows a 20GB Xbox 360 system with a "new low price" of $299.99. Currently the 20GB model sells for a suggested retail price of $349.99. The scanned image shows only part of the Xbox 360 listing, and nothing from the rest of the ad save for box art of Civilization Revolution and 2K Sports' Prizefighter. Such pictures can be faked, but if this one was, the creator at least paid enough attention to duplicate the K-Mart circular's font as well as details like the twin-color blowout box announcing the price drop.

The person who posted the images says that the price cut should go into effect around July 6, a Sunday, likely meaning that the ad is intended to run in that edition of the newspaper. It's fairly common for newspaper ads such as this to be printed a week or more in advance of the publication date, and with Civilization Revolution set for release on July 8, the timing of this leak fits well. That's also the week before the big E3 Media and Business Summit in Los Angeles, a time when console makers traditionally try to generate momentum for their systems with big announcements.

Although it hasn't quite been a year since the last round of Xbox 360 price cuts, those were a bit mild ($20 on the Core and $30 on the Elite), and the intervening time frame has seen the Xbox 360 hardware lose considerable momentum to the PlayStation 3. According to figures from the industry-tracking NPD Group, the Xbox 360 beat the PS3 in US hardware sales every single month through the end of 2007. However, for the first five months of 2008, the PS3 has outsold the Xbox 360 three times, and was only a thin margin behind the Microsoft console for the other two.

Microsoft needs to spark system sales to fend off Sony's advancing PS3. A price cut is one of the simplest, most direct ways to encourage gamers on the fence to take the plunge. Right now customers are likely looking at a Blu-ray drive and built-in wireless support as features well worth the $50 difference between a 20GB Xbox 360 and a 40GB PS3. Widening that gap to a nice round $100 would no doubt make Microsoft's system a much more enticing value proposition for many gamers.

The official story: Microsoft hadn't returned requests for comment as of press time.

Bogus or not bogus?: Probably not bogus.

337 Comments

  • bboysleepy32

    Posted Jul 3, 2009 12:20 am PT

    360 is tempting, but i just don't like their games as much as the PS3.

  • bboysleepy32

    Posted Jul 3, 2009 12:16 am PT

    @ctburesch
    Everyone, tell this dude to get his facts straight. Playstation Network is completely free, XBox live is not, unless you use Silver. Don't get it twisted.

  • JReefer1

    Posted Aug 19, 2008 10:46 pm PT

    Oh WOW!What NOW.

  • normsta

    Posted Jul 1, 2008 9:38 am PT

    Instead of lowering the price they should make a good value pack/system since you have to spend 100+ bucks in accessories so that it's somewhat par with the ps3. also i only have my 360 (it's my second one btw cuz i got the red ring) cuz i got it when it launched, man i wish i would have kept my money and bought a wii or something maybe even a dreamcast i would have got alot more out of those consoles.

    Take my advice buy a ps3 or if you can't afford it get a wii, the 360 is already obsolete. The only way microsoft will be able to manipulate the consumers is by releasing a new 360 without all the flaws. But that means every 360 owner will have to buy that system. (i'm sure M$ doesn't care if it comes to that)

  • Gifted_One

    Posted Jun 30, 2008 11:35 pm PT

    And this is why I love the competitive market in the gaming industry. Saving me money on something I want for cheaper so he can "outsell" the other. Much better than a monopoly would be.

  • angel345

    Posted Jun 30, 2008 8:37 pm PT

    The price drop will happen for sure, I work at Radioshack and already have the weekly ads for that time period with the 360 listed at 299.99 "new low price.

  • ctburesch

    Posted Jun 30, 2008 5:15 pm PT

    jtthegame316, by the way the US price on an Xbox 360 Elite is $449, the UK price is 249 pounds, which is $498. US dollars. It is still cheaper in the US.

  • ctburesch

    Posted Jun 30, 2008 5:08 pm PT

    The 16% failure rate was for the original Xbox 360. They have a new chip set now and they moved the fans from directly blowing hot air on the chipset which these 2 combined were causing the failures. The Xbox's made pretty much with the HDMI inputs are safe. I personally have 2 Xbox's and I am trading my 2006 Xbox 360 in for an Elite which is just in time. Thanks Microsoft. I also have a PS3 and a WII. The Xbox 360 is by far the better gaming console. I absolutely hate the PS3 for several reasons. It is a glorified dvd player in my house as all games that come out for the Xbox and PS3 combined, I will get it on the Xbox due to the way better multiplayer system with Xbox live. Playstation network is horrible. It should be free.

  • acarrillo

    Posted Jun 30, 2008 1:30 pm PT

    Nice price but! 20GB mmmmm!!! i dont think!....

  • bluej33

    Posted Jun 30, 2008 8:52 am PT

    Eh...I'll still be getting myself a PS3. The 360 just doesn't seem to have enough life left in it to make it worth a purchase.

  • Solid_RAG

    Posted Jun 30, 2008 7:16 am PT

    UK price seems about right since PS3 is out selling 360 over there it would make sense for Microsoft to this.

  • andrew_ribbons

    Posted Jun 30, 2008 6:16 am PT

    I do wish people weren't so ignorant. Upgrading the 360 to having a Gigabit ethernet port would do nothing for speed. That's a 1000 Mbit/sec connection in a world where 24Mbit internet connections are about as fast as it's ever realisically going to get, so it's the internet connection which bottlenecks connection speed, not your hardware.

  • 02sfraser

    Posted Jun 30, 2008 2:02 am PT

    well im getting my 360 today because of the previous big price cut. they sure are getting cheap

  • sirvampalot

    Posted Jun 30, 2008 12:17 am PT

    mbgbeserk you need to know what you are talking about before opening you mouth.Is there going to be a price cut in the uk.

  • Dan2002sk8er

    Posted Jun 29, 2008 11:42 pm PT

    This sucks because now there will be more little kids on XBL. I like the consoles being expensive how many 7 year olds do you wan't screaming in your ear when Gears 2 comes out???? None, that's my answer.

  • Taygun91

    Posted Jun 29, 2008 10:44 pm PT

    mbgbeserk
    Ok this guy again, Just for the tip you could play like 200 games and still have room for all your saves. Games dont take up much and they dont need to install for an halfhour like the PS3. And exclusive games, im pretty sure we have a great list coming out this year not to mention those new EXCLUSIVE RPG's for next year.

  • degrassirulez

    Posted Jun 29, 2008 8:38 pm PT

    Please be true

  • _guenter_26

    Posted Jun 29, 2008 8:04 pm PT

    mbgbeserk
    You really dont need a HDD high than 120GB because in order to fill it you would have to download a lot of stuff, MS can make a bigger HDD. Also the Elite 360 has a 120GB HDD bigger than any PS3 and is just a little more than a 40GB PS3.

  • JadeAZNdragon

    Posted Jun 29, 2008 7:58 pm PT

    I would stop complaining on what the xbox 360 has in its firmware. that's why there is something called updates. updates can solve a lot of problems, am I right? and I do sorta agree with akira3333, except not exactly throwing in a free wireless dongle. well, I mean, I would want that, who wouldn't? but it's really up to microsoft on what to do, and I would REALLY want microsoft to lower the price on the wireless internet adapter. I could get a pretty good quality one for my comp, say a a/b/g/n adapter that's around 50-75 bucks. or even better, make it built in! another thing is, upgrade the ethernet port on all xbox 360s to a gigabit ethernet port. it would be a lot faster, although it is already pretty fast. that's all I have to say...

  • mbgberserk posted Jun 29, 2008 7:36 pm PT (does not meet display criteria. login to show)

    mbgberserk

    Posted Jun 29, 2008 7:36 pm PT (hide)

    there is no point in a price cut for a 20gb system for one out the box you get like 13-15gb and how many games can you save on that people get a ps3 you can change the hard drive pass 120gb of the xbox !!! ps3 is getting better and da xbox360 is running out of excl... games whats after gears of war 2 come on now .

  • Ranteal

    Posted Jun 29, 2008 6:45 pm PT

    Knobudy likz a no-it-all budde

  • SteeleInd

    Posted Jun 29, 2008 6:24 pm PT

    I'm excited about the price drop, as this will probably mean lower prices for accessories. I'm looking to buy a 120GB hard drive. The 20 gig works fine for me, but I'd just like to be able to keep my demos for a while, and not have to worry about space. Plus, I'll be getting my HDTV soon, so I'll re-download my TV shows in HD, as I'll have the bigger hard drive too.

    However, I'm not excited about the amount of people on this website that cant spell. GS should put in a system that finds your spelling errors, and sets them against your experience/rank. Just something to encourage a halfway intelligent-sounding response.

  • Ranteal

    Posted Jun 29, 2008 5:56 pm PT

    I hope this was Johnny Carson approved. Hate to think what he would say if they went over his head.

  • _guenter_26

    Posted Jun 29, 2008 5:50 pm PT

    ADJ209
    The 16% failure rate was for 360s from 05 and 06. It dropped to 10% last years when MS had 3 smaller fans put in instead of 2 big ones and a smaller CPU die and the heatsinks were improved. With the new motherboards they are making the failure rate should drop to 4% and lower.

  • Agent00X posted Jun 29, 2008 5:09 pm PT (does not meet display criteria. login to show)

    Agent00X

    Posted Jun 29, 2008 5:09 pm PT (hide)

    HELLO WORLD! This is my first post! Freedom to the slaves in africa!

  • Csalbertcs

    Posted Jun 29, 2008 4:39 pm PT

    Sweet. But I hope that some 360 accessories will also drop in price (such as the Hard Drives and the Wireless Network Adapter).

  • marco0798

    Posted Jun 29, 2008 4:20 pm PT

    ADJ209

    Im tempted to get one although the 16% failure rate seems a bit meh.

    the new 360's dont suffer the same problem as the firt ones so as long as u buy one made this year you wont have any probs.

  • jamesallenyz431

    Posted Jun 29, 2008 2:47 pm PT

    they should lower the price of games to 50 bucks for new

  • ADJ209

    Posted Jun 29, 2008 1:02 pm PT

    Im tempted to get one although the 16% failure rate seems a bit meh.

  • sean_ph

    Posted Jun 29, 2008 12:00 pm PT

    For those who still dont have a 360, this price cut is good enough incentive...especially come November for Gears of War 2

  • marco0798

    Posted Jun 29, 2008 11:29 am PT

    just buy the US 360 and your sorted.

  • mufcbarlow1

    Posted Jun 29, 2008 10:57 am PT

    If the xbox 350 isdropping to $299.99 that means in the UK it should cost...

    150.00 in the UK. We all know this wont happen because we are ripped off in the UK. It will go to 250.00 at the cheapest in the UK.

    Absolutly ridiculous.

  • RaunchyRhino

    Posted Jun 29, 2008 10:18 am PT

    The price is for sure dropping to $299.99, I work at Best Buy, so I can get insides on these things, the price will be dropping starting Sunday July 6th, 2008

  • DecadesOfGaming

    Posted Jun 29, 2008 9:06 am PT

    I'm all for a price slash of the 360Elites.. but I'm still wondering if Microsoft have started to manifacture black "memory units" and "black wireless internet connectors" ?!

  • megamega777

    Posted Jun 29, 2008 6:40 am PT

    "History may be repeating itself...."
    If that is true then you will remember PS3 dropping their price. Wii might do it to.

  • ilovemyelbows00

    Posted Jun 29, 2008 5:19 am PT

    i wouldn't mind an xbox live price cut

  • combatsoldier

    Posted Jun 29, 2008 4:50 am PT

    either way this is great news for all consumers, nomatter who you are. if your like me and just care about games and not the console wars. then there is no reason to pass on this. everyone is going to have a 360. those of you that know me know about my union and know that we support all systems however you have to give microsofts the props it deserves. good job micro.

  • mpeg3s posted Jun 29, 2008 4:11 am PT (does not meet display criteria. login to show)

    mpeg3s

    Posted Jun 29, 2008 4:11 am PT (hide)

    You've been tombed by MGS4!

  • GunShot7

    Posted Jun 29, 2008 2:33 am PT

    remember that if you want live yoou have to pay an extra 40 pound

  • GunShot7

    Posted Jun 29, 2008 2:31 am PT

    Remember that if you want live you have to pay an extra 40 pound

  • Ozzie234

    Posted Jun 28, 2008 11:57 pm PT

    You *are* a fanboy, cspowered, because the ps3 hasn't showed its graphical "superiority" yet. In fact, game for game - with very few exceptions - the 360 is always better.

    So eat it.

  • lanmanna

    Posted Jun 28, 2008 11:27 pm PT

    Does it seem like the system wars are more fierce than last gen? Is it because PS2 was already a leap ahead in sales than the GC and Xbox?

  • _guenter_26

    Posted Jun 28, 2008 10:29 pm PT

    Lower the Elite to $400 or less and that will sale like crazy. Also MS should stop making the Arcade since the Pro will just be $50 more than a Wii if this is true.

  • KC_Hokie

    Posted Jun 28, 2008 9:56 pm PT

    "i don't get it. Does the new Xbox pricecut mean that they have offically switched to the jasper card??? Someone please respond"

    Yes, that's part of the reason. The 'falcon' models were made in limited quantities because the 'jasper' models are more cost effective. The combination of cheaper production cost + need of an added boost due to competition = significant price reduction So that means Jasper models will be out in a few weeks in my opinion otherwise the price reduction wouldn't be that severe.

  • skylar561169

    Posted Jun 28, 2008 9:32 pm PT

    i don't get it. Does the new Xbox pricecut mean that they have offically switched to the jasper card??? Someone please respond

  • Sonicplys

    Posted Jun 28, 2008 8:18 pm PT

    finally, I can now get the xbox 360 at a price worth its services. Now all I need is the PS3 down to 200 bucks

  • KC_Hokie

    Posted Jun 28, 2008 7:57 pm PT

    The K-Mart webpage says "Microsoft XBOX360 System with HDMI.... $349.99 thru 06/28/08"

    I think that reinforces the price drop. Why else would that price only be thru June 28th?

  • kb8618

    Posted Jun 28, 2008 7:22 pm PT

    sweet, now there's a higher chance sony will announce a price drop as well. so ill be able to get my PS3 for cheaper, and then get a 360 in december also for less

  • jtthegame316

    Posted Jun 28, 2008 7:08 pm PT

    we got a price cut in the uk a while back so go mircosoft do it for the americans to. Prjct_FntsyXIII surly you should be buying a console for games and not based on blu ray and wi fi and stuff plus most the things you mentioned the xbox does anyway in fact intenet browsre and blu ray are the only two thing you mentioned the xbox don't do. blu ray i don't care about. internet browsre is something i could see them doing on xbox. not that it matters cause the xbox already has loads of great games and for me that is the only reason to own a console based on games.

  • cspowered posted Jun 28, 2008 6:19 pm PT (does not meet display criteria. login to show)

    cspowered

    Posted Jun 28, 2008 6:19 pm PT (hide)

    My guess is that Microsoft is going to release a 'better' X360 at the price of a PS3, with improved graphics or something like that to compete with the PS3's better system.

    I'm no fanboy of the PS3, but I personally think that the price advantage of the X360 is a complete illusion for kids/teens that don't know better and do not have any financial skills. If you buy a X360 you will most probably get X-Live, which costs money... pay for X-Live some time and you end up paying more than a PS3, which is clearly a ripoff. The only advantage that the X360 has is popularity, put a smaller price tag on the box and you win.

    But of course, that is just too much reasoning for a kid/teen. There's nothing wrong with the X360, but if you say it's cheaper, you've been fooled.

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