The Wall Street Journal reports that Microsoft will lower the price of its 20GB Pro Xbox 360 from $349 to $299 as early as July 13th. It might be announced as part of Microsoft's presentation at the E3 on July 14th.
Microsoft has lost ground to the Playstation 3 in the past year, possible because of the defeat of Microsoft backed HD-DVD which the Xbox came with versus Sony’s Blu-Ray and the 40Gigs of space versus the Xbox 360’s 20Gigs at a roughly $50 price difference. Best guess is that this might lead to Sony cutting prices on the Playstation 3 as well.
So if you absolutely must get a console, hold off for the coming price adjustment. We’ll miss you in Team Fortress 2.