Rumour: 360 4Gb dropping to $249 from next week

If a Walmart flyer is any indication, the 4Gb Xbox 360 with Kinect bundled in will drop from $299 to $249 next week.

It's unknown if it's just a drop from the retail chain itself - the flyer is dated for the week beginning August 28 - or if it's from Microsoft.

360 has performed consistently well this year so far in the US, while Xbox Europe boss Chris Lewis told VG247 at gamescom last week that it didn't see any need to cut the price well on the continent.

"As you can imagine, we plan for these scenarios all the time. For me to sit here and say that was a big surprise would be a lie," he told us in Cologne.

"What we’ve achieved with Kinect has given us growth that I think others would aspire to at this point in the lifecycle. We’re happy with our position. While we’re not complacent about the competition, I wouldn’t trade places."

If there was to be a price cut, it would follow the one given to PS3 last week in Germany by Sony.

Thanks, Joystiq.