Microsoft may be preparing an Xbox 360 price cut

This afternoon, Microsoft is saying very little about a report in the Hollywood Reporter last Friday that it's planning to cut Xbox 360 prices this month, other than to say, "Stay tuned."

The Reporter's...uh, report is that Microsoft plans to cut the price of the 20 GB Xbox 360 Pro by $50, to $299, before the E3 video game trade show, which runs July 15-17 in Los Angeles.

Such a move would not be without precedent; the company cut prices last August from $399 to $349 in advance of the release of Halo 3. That had been the first price reduction for the console since its introduction 21 months earlier. Microsoft also began bundling two free games, worth $90, with the machines last fall.

In comparison, Sony's 40 GB PlayStation 3 costs $399, while the Nintendo Wii costs $249.99. According to the Web site nexgenwars, the Xbox 360 has sold more than 19 million units, Sony's PlayStation 3 has sold more than 10 million units, and Nintendo's Wii has sold more than 22 million units.

Microsoft's only comment to BetaNews this afternoon, specifically, was, "We don't have an announcement at this time, but stay tuned."