Rumor - Xbox 360 price cut comes ahead of 60GB E3 announcement

We've heard the rumor that Microsoft is dropping the price on the 20GB Xbox 360. The flyer looks pretty legit, and I've been seeing others crop up, so I have little doubt that it is true. Now the question becomes why. Why is Microsoft dropping the price on their 360?

There are two likely reasons, one being that poor console sales are forcing their hand, which I seriously doubt. The other (and more likely) reasoning is that they are making way for a new SKU with a larger hard drive.

Lets see, we're around two weeks out from E3, with a price drop on a popular SKU. I smell a new release at E3. Even Ars Technica has it on good authority from a trusty source that there will be a 60GB Xbox 360 released at E3. 60GB seems a little small these days, but it sure beats 20GB.

[via Ars]