As the rumors swirl about Microsoft planning a price cut for the Xbox 360 in the US, recent news out of Australia is only going to stir things up further. The company today confirmed that they would be slashing prices of the Arcade unit by $50 AUD, the Pro by $180 AUD, and the Elite by $80 AUD. With the new prices, the cost of an Arcade console comes to $349 AUD, which is actually $50 AUD cheaper than the cost of a Wii ($400 AUD).

Of course, this news comes at a particularly interesting time for Microsoft, as many outlets have reported seeing various retail circulars advertising the Xbox 360 Pro system for $299, a $50 cut from its current price, and bringing it to within striking distance of the cost of a Wii. The prevailing rumor is that the new price will take effect the week of July 6th, one week before E3.

For their part, Microsoft is trying to dampen rumors, with Jeremy Hinton stressing that the current decision is for the Australian market only, and that each region has the ability to determine price on their own without getting a green light from company headquarters in Washington. Still though, the fact that Europe and Australia have both seen a reduction, coupled with the visual evidence of a new price on the 360 in the US means that this is one rumor that definitely has legs.