Microsoft will cut the price of its most popular Xbox 360 model, the 20GB Pro, by $50 to $299 in the coming weeks, game industry sources have confirmed.

Microsoft would not comment, but a major retailer, which requested anonymity, said the price move will come before the major video game trade show, E3, which runs July 15-17 in Los Angeles.

Microsoft last cut the price of the Xbox 360 Pro -- from $399 to $349 -- in August, in many ways setting the stage for the huge successful rollout of Halo 3 the following month.

While Microsoft does not have a Halo-style blockbuster on the horizon this year, the company is trying to compete both with the Nintendo Wii for a family/casual gaming audience, while also fending off Sony’s Blu-ray-equipped PlayStation 3 in the market-share battle for the more hardcore players.

While Sony could be pondering its own price cut, the consumer electronics giant did note recently in an annual report that the PlayStation 3 has cost the company $3.3 billion since its late 2006 launch because of a strategic decision to sell the system for less than it costs to make.

Courtesy of The Hollywood Reporter & Game Daily