The Hollywood Reporter has predicted that Microsoft will drop the SRP of Xbox 360 by $50 in the US on August 8th this year – and credited the information to an unnamed retail source.

The publication notes that a price drop at this time would arrive shortly before the release of major titles such as EA’s Madden NFL 2008, Midway’s Stranglehold and 2K Games’ Bioshock.

The article does not clarify which 360 models the price drop would affect. Microsoft currently offers $300, $400 and $480 versions of the system to US consumers.

A Microsoft spokesperson told THR: "We have no announcements to make on pricing at this time. While price matters, content is king. And no other system is offering all the games people want to play this holiday at a better price than Xbox 360."