Xbox 360 price cuts spotted on another flyer

Pictures of another flyer showing Xbox 360 pricecuts, this time from Kmart, was posted on Joystiq. The flyer will allegedly be put into circulation on Sept. 7th. There was also a Radio Shack flyer leak showing the same information and scheduled for distribution on the same day. The Kmart flyer shows the Xbox 360 Arcade selling for $200, the 60GB Pro system for $300, and the Elite 120GB for $400.

The strategic price cuts could put the pressure on Microsoft's competitors follow suit. A $200 tag on the basic 360 would undercut the Nintendo Wii entry price by $50. Sony PS3 prices start at $400 for an 80GB model, up to $500 for a 160GB version. It has been rumored that Sony will drop prices on their products sometime after Microsoft.

If all three companies are forced to drop their prices to stay competitive, it be a boon for consumers. In past years, the lack of inventory led some to pay exorbitant prices through auction websites.