Rumor Alert: 60GB XBOX360 Replacing 20GB Model?

There may be a reason for the rumored $50 price drop

In light of this morning’s report on at least one major (and as yet unknown) retailer leaking that the XBOX 360 Pro will hit a $299 price point before E3, we’re learning from another source that there’s a good reason for that–that particular model will soon be discontinued.

We’re not talking about *all* of the XBOX360 Pros going under, just the 20GB model. According to Arts Technica, Microsoft may be looking to replace the 20GB in the Pro with an even larger 60GB model. As the 60GB model is phased in, the 20GB model will be discontinued by Microsoft, according to the source.

These new price points may even be revealed as early as tomorrow, says the AT source.

That’s not a lot of time to wait and see what happens, so we’ll keep tabs on this development. It could be a sign of things to come for Microsoft’s XBOX360 in the leadup to E3.