When contacted for comment, a Microsoft representative responded, "We have no announcements to make on pricing at this time." On reports of the company allegedly phasing out the Core model, the rep stated, "Xbox 360 Core remains an important member of the Xbox 360 family."

Original story: Microsoft's Xbox 360 console will drop in price soon from $399.99 to $349.99, according to leaked images of newspaper ads set to run the weekend of August 12, as collected by Cheap Ass Gamer. The ads from Wal-Mart and Toys "R" Us indicate the price cut as affecting only the standard version of the console, not the Core version selling for $299.99.

Plans for a $50 price cut were revealed earlier this month in a story by The Hollywood Reporter. Several analysts expected Microsoft to drop the price of the console during its press conference at E3.