The Xbox 360 will drop in price in the US, by as much as US$50 depending on the model. If this is in preparation for a new model or not isn't clear. However, the Core model is rumoured to be dropped shortly, but until Microsoft confirms this, it's only a rumour. It would be nice to see more models with HDMI and we wouldn't think that it is a costly addition and Microsoft should really offer it across the range.
The Core version is dropping from US$299.00 to $279.99. The Premium version will drop $50 in price, from $399.99 down to $349.99 and it will come with a free copy of Rockstar's Table Tennis. Finally the Elite will drop $30 in price from S479.99 to $449.99, making it much more competitive against the PS3.
It will be interesting to see how Sony responds to this price drop, if at all, since it doesn't seem to be enough of a price drop to really worry Sony. Microsoft is still too far Nintendo's super low Wii pricing to cause Nintendo any concern. Let's just hope that Microsoft follows suite in the rest of the world and gives us a price cut as well.