Apparently Gamestop employees received information about an Xbox 360 announcement for August 8th (complete with marketing materials).  It's safe to say that it's the price cut :)  Hopefully this price cut and Bioshock being released this month will allow the 360 to get some sales in before Playstation 3 domination begins in September with Lair :(

http://www.joystiq.com/2007/08/02/gamestop-email-microsoft-announcement-on-august-8/
by Justin McElroy Aug 2nd 2007 8:30AM

"We've heard of this email from a couple of tipsters who shall remain nameless, and now, through the magic of the internet, we're able to share it with you. The note, sent out on Tuesday to Gamestop stores, lets them know that they can expect marketing materials about an "upcoming announcement" from Microsoft that should be posted on Aug. 8. The sternly-worded missive also says that those that receive the "materials" early should not display them. Also, "DO NOT" is capitalized, so you know the person on the other end is through playing around, mister.

Now, we know there's a temptation to think that the materials will be about the rumored 360 price drop. But, as we're sure that Microsoft would tell you were they here, it could be about anything. Maybe it's a ... super secret new Zune. Hmm, you're not buying it. Yeah, neither are we. We'll let you know when one of our super spies takes a picture of the materials with their ballpoint pen camera before activating their stealth suit and shimmying out a heating duct."

My signature remains un changed, a 20 dollar price cut isnt going to increase sales like it did for ps3, but strange things have happened.

It's a $50 price cut for the premium... (And likely a $100 price cut in Canada...).

A 13% price drop after two years is still crap though. PS2 price dropped 33% after two years, Xbox dropped the same after less than a year, GC dropped 25% after a year, and now the PS3 dropped 17% after less than a year. It'll have about the same effect as the PSP's price drop did this spring.

Will it slow down Wii's sales?

No. Maybe a $100 price drop on Core and Premium together could have made a teensy dent in Wii sales but this definitely won't affect them at all.

A very steady and long lasting increase without signs of slowing???

No ofcourse not.

 It is crap but there is a very strong possibility a second cut wll happen in Nov (as rumored).

So I dont think we can fully judge. If it's MS only cut of the year it's crap. If it's only the first of two, it's not bad. 

I read a article today that quite frankly worries me. Microsoft is only pricing to match Sony, and not to beat Sony or even compete with Nintendo. Instead they are just following the leader. Had Sony not cut their prices even temporarily Microsoft would not have dropped theirs.

Perhaps Microsoft planned to do it later, or perhaps they did not plan to do it at all. Which raises the question did they plan a far grander cut and we are only getting a percent of it now, or has the ring problem cost them so much that they are unwilling to lose any more then they have to.

We got to start questioning Microsofts conviction if this rumored price drop pans out. The premium is still a hundred dollar difference with the Wii that has a bonus pack in game. I certainly will not pick one up. However I guess we will see what the ignorant masses will do. Perhaps Microsoft is right.