We've all seen the Wal-Mart and Toys R Us flyers indicating the US$ 50 price cut, but we didn't get a clear confirmation of the good news back then. But here it is, proof that the price cut exists, and more.

The Xbox Pro SKU will get the US$ 50 price cut as advertised in the flyers (US$ 349.99), and the good bit is that the Core and the Elite SKUs will be treated to a discount as well. US$ 20 will be taken off of the Core's current price, bringing it down to only US$ 279.99, while the Elite will get $US 30 slashed from its price tag, making its MSRP US$ 449.99.

Wedbush Morgan's Michael Pachter said that the price cut "speaks volumes about the cost of production," adding that Microsoft was break-even with the discount on the Pro SKU, with the production costs probably amounting to US$ 325.

The price changes will be applied on August 12, with Circuit City bundling Rockstar's Table Tennis for the Pro SKUs. When asked about the price changes, Microsoft declined to comment.