Joystiq has posted that Xbox 360 will receive a $50 price drop by September 7th. This drop will make the 60GB model $299 and the Elite $399. The Xbox Arcade will receive a more substantial price drop of $80 and the new price will be $199. Joystiq’s price drop report is further confirmed by a leaked Radio Shack flyer for week of September 7th that shows Xbox Elite for $399 and Arcade for $199. The price drop shows that Microsoft will do anything to maintain its lead over Sony PS3 and price drop before holiday season might be just the right thing.