Next month Microsoft will cut the price of the Xbox 360 in the States by $50, in time for the release of BioShock and Blue Dragon, reports The Hollywood Reporter.

According to the publication's retail source the reduction will be made on August 8, which it notes is traditionally a quiet time of the year for hardware sales.

The timing of the cut is significant, notes the reporter, because it's also days before the release of EA's latest Madden, which sells like beer to college kids. Of course it'd also come after Sony's PS3 price reduction earlier this month, where it slashed $100 off of the 60GB model.

Above: This Big Daddy was blown-away by the awesome new 360 price

The official word from Microsoft's US op is that there are "no announcements to make on pricing at this time." A company spokesperson notes that "while price matters, content is king. And no other system is offering all the games people want to play this holiday at a better price than Xbox 360."

The Hollywood Reporter remains firm that the cut is coming though, but it's not quite sure whether the slash will be made to the Core, Premium console, or both.

It's probably the right time as well; Nintendo's catching up quickly with sales of Wii, and Sony's first proper system selling titles are starting to arrive. A lower price point will help the Xbox 360 break into the mass market - which if it's going to compete with Nintendo, it really needs to do.

July 25, 2007