For weeks now rumors that Microsoft would be lowering the price of the 360 have been rumbling. News quickly erupted when GameStop’s promotional material began to circulate around the net, boasting  that the Xbox 360 Pro system would soon retail at $299.99, and now a leaked email from Microsoft appears to have confirmed this as well. The message, which was sent to GameStop and Blockbuster retail stores, informs that Microsoft anticipates placement of the $299 price tag on the Xbox 360 Pro (20GB HDD) to make way for a new 60GB model this month. No price has been announced for the 60GB system as of yet, but it would seem logical that it will go for the current price of the 20GB model.

HDD upgrade options do appear to be on the horizon as well — by as soon as late October, we may see 60GB LIVE Starter Packs hit store shelves. The $99.99 bundle will include a 60GB HDD, a wired headset, Ethernet cable, and 3 months worth of Xbox LIVE Gold membership.

It’s safe to say we can expect Microsoft to officially announce the news at its pre-E3 press conference on Monday.