While there has yet to be an official press release from Xbox Australia, the Sydney Morning Herald is reporting that the rumored Xbox 360 price drop is a reality, citing confirmations from Xbox and retailer EBGames. The new price of the Arcade pack is perhaps the most significant as it brings the Xbox 360 below the rrp of the Nintendo Wii ($399), making it the most affordable of the three current-gen consoles.

• The staple Xbox 360 Pro package that bundles a 20GB hard drive, headset and high-def cabling is now marked at $499 (down from $579).
  
• The black Xbox 360 Elite model that packs a 120GB HDD and HDMI cabling now goes for $649 (down from $729).
  
• And the hard drive-less Xbox 360 Arcade pack (previously known as 'Core' but now with HDMI port and wireless controller) dips to the lowest now at $349 (down from $399).

Additionally, some retailers are dipping even further with limited time sales. Big W letting the Arcade pack go for the low $279 and K-Mart offloading Xbox 360 Pro packs for only $449.

Interestingly, despite the comments in the SMH article, EBGames website and current sales catalogue don't yet promote the new prices. Needless to say, if you plan on buying an Xbox 360 in the next few days, make sure you don't pay more than the new RRPs.

Update: Microsoft have now sent out an official press release confirming the above.