UK retailer Argos is no longer selling the 60GB SKU of the Xbox 360, fuelling rumours that Microsoft is set to announce a new lower price for the Xbox 360 Elite.
"We are very sorry but Microsoft have discontinued this line," says the retailer on its official website.
Rumours are suggesting that Microsoft will discontinue the 60GB hardware, leaving the Xbox 360 Elite with 120GB hard drive as the main SKU at retail, alongside the entry level Arcade unit.
The Premium console currently retails at GBP 169 and the Elite at GBP 229 in the UK.
Rival firm Sony is widely expected to announce a price cut on the PlayStation 3 next week during the Gamescom event, and possibly a new SKU in the shape of the PS3 Slim.
Like the Xbox 360, Sony hardware is also reported to be drying up at retail.
GamesIndustry.biz has contacted Microsoft and Argos for comment.