Rumors and pictures of advertisements have been circulating around the internet showing a price drop on the Xbox 360, and now it has been made official by Microsoft. On August 8th, tomorrow, Xbox 360 Core models will be available in the United States for $279.99, $20 less than they have been since launch. The Premium model will drop by $50 to $349.99, and the Elite model will now be priced at $449.99, a $30 price drop. This price drop is timed with the launch of Madden NFL '08, the next title in one of the most successful franchises in history.

Microsoft is hoping that the gamers sitting on the fence about getting a new console will finally take the plunge with this reduced price. The Xbox 360 Core model is now within striking distance of the Nintendo Wii's price of $249.99, but without a hard drive the Xbox 360 Core is a severely lacking experience. Microsoft holds the opinion that the Xbox 360 is a great value, and this price drop definitely helps their argument, especially compared to the Sony Playstation 3.

The Madden series drives purchases every year, much like the Mario series does for Nintendo. Microsoft is confident that this double shot of a price drop along with a mass-appeal game like Madden will help expand their market into the more frugal, casual sports gamer.

Microsoft Lowers Price of Xbox 360 by $50 [Microsoft Press Release]