Our friends over at Joystiq have received a juicy tip in the form of a Radio Shack circular which shows the Xbox 360 getting a hefty price cut the week of September 7. According to the magazine scan, the Pro model (with the 60GB hard drive) will drop $50 to $299, while the Elite unit tumbles to $399. Meanwhile, the Arcade (the only SKU without a hard drive) will see it’s price cut to $199, officially making it the currently the cheapest console in this hardware generation.

Further digging has apparently corroborated the evidence, meaning that this likely isn’t just a Radio Shack special, but more likely a systemic price cut instigated by Microsoft. For those questioning the validity of the source, remember that this is how we learned about the 20GB price drop and the existence of the 60GB model in the first place, so this is one rumor with a considerable amount of weight behind it.

If true, this could turn out to be a huge point in Microsoft’s favor heading into the Fall release calendar. Cheaper consoles, coupled with major games like Fable II and Fallout 3 prepping for release means that the company may just be able to reverse the recent trends that have seen the PS3 strongly outselling the Xbox 360 over the past few months. I know even for someone like me who already has an Xbox, the bigger hard drive and HDMI port of the elite make it awfully tempting to upgrade...