Brian Ashcraft of Kotaku says, "Previously, we posted a Kmart ad indicating a price-drop in the Xbox 360 line-up. The ad, purported to hit July 6, shows that the model that comes equipped with a 20GB hard drive, formerly known as the 'Pro' version, will be priced at $299 US. That's a $50 price drop from its current MSRP. A Gamestop employee has tipped us with what looks like further confirmation that the lower priced Xbox 360 is hitting. Pictured is the $299.99 Xbox 360 SKU in the Gamestop inventory screen. While the tipster isn't sure what the bundle contains, we imagine it will be everything that's in the "Pro" version. Here's the kicker: Apparently, this cheaper Xbox 360 is a refurbished console as the product description reads..."
From Kotaku: "Update: Several Gamestop employees have altered us that the retailer has been running this refurb deal for the past month or so, thus negating anything it has to do with the rumored price-drop Xbox 360. Nothing to see here! Move along, move along."