Prices for the Xbox 360 are dropping all around the world, so should we expect the same treat here in the UK? Rumours were doing the rounds (when don’t they?) a few weeks back that it was soon to become the cheapest of all the next generation consoles, dropping it’s price even lower than the still popular Nintendo Wii.

Following Australian price drops, America is the latest to enjoy reduced pricing with Target stores now offering the Xbox 360 at a respectable $299 (£150 or thereabouts). That’s for the Pro package as it’s called in the States (Premium to us lesser mortals), too, so does represent a really good price. Obviously, if we do see a price reduction, it will still never drop as low as the £150 mark in the UK (crossed fingers and all that, because I’m having some issues with mine… again).

As ever, you can’t have a confirmed rumour without another one rearing its head and this one is staple fare for the tech gadget industry. Remember when the iPhone was all sold out and it was “rumoured” that it meant the impending release of a new model? Well, the jungle drums are now beating a similar tune – translated, they mean that Microsoft is hocking its wares for cheap so that it can clear out its 20GB stock in order to release a new 60GB model.

As E3 starts on Monday, if there is such an announcement due, you would imagine that it will occur then – Microsoft is up first, I believe, although I won’t be there (I guess my invitation got lost in the post or something).