Updated: Xbox 360 Price Cut on Tap?

If you've been waiting to snap up an Xbox 360, it might pay to hold out for a couple more weeks. The rumor mill is abuzz thanks to a series of flyers from major retailers, all advertising $30-50 price cuts on the console starting later this month. But are the flyers for real?

Gaming blog Joystiq got its hands on purported flyers from Wal-Mart, Toys R Us, and now Circuit City; according to the flyers, price cuts of $50 for the standard Xbox 360 bundle (normally priced at $399), $30 for the Elite (typically $479) and $20 for the Core system (currently $299) will kick in on August 12. Microsoft hasn't officially announced a price cut on the 360, and while the flyers look real to me, never underestimate the power of Photoshop.

Still, a 360 price cut would make a lot of sense from a business standpoint. Sony is putting the heat on Microsoft after its $100 price drop on the 60GB PlayStation 3, from $599 to $499 (that is, until stock of the 60GB model runs out, but that's another story), Xbox 360 console sales have been looking shaky recently, and the wildly popular Nintendo Wii (just $250) has been leaving both consoles in the dust in terms of sales.

Meanwhile, today's the day that Microsoft's previously announced price drop for the Xbox 360 HD DVD add-on goes into effect. Personally, I've been wavering on whether to get one (yeah it's cheap, but what about the weak movie selection? And what if Blu-ray wins?), but who am I kidding—I'm a gadget fiend, and I know that by the end of the day, I'll be marching down to the store to plunk down $180 for my HD DVD drive and five free movies.

So, how you feeling about all the price cuts? Any takers?

Update: And yes, the price cut has indeed come to pass.

Related:
Circuit City flyer shows Xbox 360 price drop on all systems [Joystiq]