Word on the street was that the $299 price slash we've been hearing about wasn't about carving out a new pricepoint but instead making room for a new 60GB Xbox 360 in its place. Turns out the Mr. Word on the Street nailed this one, with Microsoft finally fessing up to the price drop, and announcing a new fancy 60GB Xbox 360 to fill in at that $349 pricepoint, which will be available in "early August." You can pick up a 20GB "while supplies last," but the $279 Arcade and $449 Elite aren't budging price wise. Oh, and can we just say that this couldn't come at any better a time? We just had to delete August Rush to make room for National Treasure 2, which we'll probably have to drop tomorrow for Fool's Gold. Such is life when you've only got 20GB to work with.

Update: Now up for an Amazon pre-order with an August 4th delivery.

[Thanks, Sean H. and Chris]

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