A Target advert has revealed the price of the Microsoft Xbox 360 Elite 120GB in the US will drop $100 to $299.99 and the 60GB console will fall by $50 to $249.99.

Published by Engadget, the advert, which is due to appear August 30, suggests an official announcement from Microsoft is imminent.

Many industry insiders and analysts have recently added to the speculation that Microsoft will cut the price of the Xbox 360 so it will fall in line with the PlayStation 3.