The Wall Street Journal confirmed today that Microsoft will be lowering the price of the Xbox 360 Premium from to $349.99 to $299.99, putting the 20GB version well within shooting range of $249.99. No other price cuts to any of the other models have been confirmed or even rumored though, and leaks from GameStop and Blockbuster employees suggest that this cut may be part of a gradual phasing out of the 20GB model entirely.

Nonetheless, even if the deal is temporary, its likely to draw many hold outs who had been waiting for the console's price to drop to a more affordable level. While a permanent price drop may indeed help boost sales, if the change is indeed indicative of a Core phase out, it may be safe to assume that whatever rise in sales occur will be short lived, leaving the Wii once again at the head of the bargain gamer's shopping list.

This move may be in response to the recent lost ground between the Xbox 360 and Sony's PlayStation 3, which has seen sales bolstered by the release of the highly anticipated Metal Gear Solid 4, the introduction of more affordable versions of that console, and the victory of Blu-Ray drives over HD-DVD.