UPDATE: The Xbox 360 saw a temporary price drop and a new SKU. The company today announced an Xbox 360 console with triple the storage space of the original console (making for a 60GB hard drive), but for the same price of $349. Additionally, until stock lasts, the 20GB version of the 360 will drop $50 to $299. Note that this is US-only for now, we'll keep you updated on how this affects Indian prices, if at all.

Here's the entire press release on the matter.

The original news article follows:

There have been rumours doing the rounds of an imminent price drop for Microsoft's Xbox 360 console. The hearsay might indeed be true as advertisements were recently spotted showing the Xbox 360 selling for about $50 less than it's $350 price tag: The Xbox 360 Pro is being sold at Target's brick-and-mortar stores for $299.99. This US price drop follows a similar move in the UK. Could an Indian price drop be far behind? Given the history of the Xbox 360 in India, it could very well be; hopefully, the console will reflect its new international price come Diwali, at the latest.

The Target ad in question: