Don't get all loony just yet -- this one's still a long, long way from panning out -- but ArsTechnica has it from a reliable mole that Microsoft is gearing up to ship an even more attractive Xbox 360 Elite. One that comes bundled with hits Halo 3 and Fable 2 for the same $400 that the console alone runs you now. We already heard last month that Microsoft was considering phasing out the standard Elite in favor of bundled "limited edition" models, so that certainly jibes. Though, we will caution you that the last time Ars's mole spoke of console price drops, he / she didn't completely nail it. While said mole did accurately suggest that a $400 PS3 would hit America before the 2007 holiday rush (it happened in late October of that year), the whole "$100 PS2" thing took a full two years to come to fruition. Then again, E3 is just around the bend...

[Via Joystiq]