A High-Def Digest forum member by the mysterious name of Master X has captured images that appear to reveal an upcoming price drop for the 20GB Xbox 360 Pro console. The images reportedly come from a Kmart flier for the week of July 6. According to the image, the price of the Pro will be reduced to $299, knocking the price down by a hefty $50. There is no word on how this will affect the prices of the Xbox 360 Arcade and Elite models, which currently sit at $280 and $450 respectively. The price cut makes the difference between the Pro and the Arcade (which contains no hard drive at all) a mere $20 though, so we imagine price cuts are forthcoming for all models.
Expect updates when we have more information.
[Thanks to everyone who sent this in. Via Joystiq]