Sources have announced that Microsoft has decided to cut the price of the Xbox 360 by next month.

But, the news is just rumor at this stage as there has been no official remark on this up till now.

While Microsoft won’t confirm the price cut, gaming sites are buzzing with rumor.

Art Technica reported that the software giant (Microsoft) would slash the price for its Xbox 360 consoles in September 2008.

According to the hearsays the Xbox 360 Arcade (no hard drive) will be available for $199, the Pro (60 GB) edition of Xbox 360 will cost $299 and the Elite (120 GB) model will be made available for $399.

Earlier, Microsoft cut the price of the 60 GB edition to $349 and 20 GB model to $299.

Experts said that Microsoft intends to reach out to the masses with this price cut.

Equating the existing prices of Live Arcade and Elite console with the new speculated costs, the Arcade will receive a price cut by $80 and the Elite console will have a price drop by $50.