Rumours that Microsoft will cut $50 of the price of the 360 premium model in the States were reported here on Gamesdog last week and now, to add fuel to the fire, images of newspaper ads featuring the cuts have surfaced online.

The images show ads from U.S retailers Wal-Mart and Toys R Us and show the rumoured cut to $349.

Much has gone to give weight to the rumours of a drop in price at this stage in the life of the 360 - namely the smaller, cheaper chipset that Microsoft has developed, and the fact that most consoles are lowered in price at this point after launch.

Regardless of everything, all parties involved, from Microsoft to the retailers, have refused to comment, and European gamers wonder if any cuts will make it over this side of the pond.

>> Read - Xbox 360 price cut coming on 8 August