For the past few weeks several rumors have been circulating about Microsoft’s plans to reduce the price for its 20 Giga Bytes Xbox 360 console. Apparently, the existing $349 price tag will be cut down to $299.

The company’s previous discount campaign happened last August, in 2007, when the original price of $399 was lowered to $349.

Even though Microsoft refused to comment on the issue, the decision to move forward with such a plan would seem rather normal considering the similar business strategies planned by the company earlier this year in Europe and Asia. In order to successfully face its competitors, Microsoft reduced the price of its 20 Giga Bytes model with 19.5 in Singapore, 17 percent in Taiwan, 10.7 percent for Hong Kong and 5 percent in South Korea. In some of its European markets, the price was cut down with as much as 28 percent.

The best time for announcing the new prices might be around July 14, which is the official kick off day for the annual E3 Summit held in Los Angeles, CA.

The decision was taken by Microsoft in order to improve its offer in front of rivals such as Sony’s PlayStation 3 and Nintendo’s Wii and also offer the entertainment experience to an even larger number of gaming enthusiasts.   

The initiative would put the Xbox console way above Sony’s Playstation 3, which costs $399 and combined with the upcoming releases of some of the company’s exclusive games, such as Gears of War 2 and Fable 2, it should lead to some impressive sales figures over the summer.