That leaked Target circular was dead-on: beginning July 13th (today!) the mega retailer is offering the 20GB Xbox 360 console for $299.99 (a $50 price drop) along with a free $25 Target gift card. That's great news and all but we've been confidant about that price drop for weeks now; what we weren't sure about was whether or not the Xbox 360 Arcade or Xbox 360 Elite would see similar drops, or if the $50 discount on the 20GB console is simply a clearance sale to make room for the rumored-to-be-introduced-shortly 60GB console.

According to a real-enough looking Circuit City ad for the week of July 27th (note: Soul Calibur IV listed as "in store Tuesday") the Xbox 360 Arcade will still be $280. Depending on how you factor in that $25 Target gift card, the 20GB Pro system could actually be cheaper than the hard drive-less Arcade, at least while it's still on store shelves (note: the Target ad clearly states "Quantity limited"). So, permanent $50 price cut or clearance sale on the soon-to-be outmoded 20GB model?

Update: Microsoft confirms.