That's right, the supposed reason that the 20GB 360 is being lowered in price is to makeway for the new 60GB Pro unit.
Quote:
Originally Posted by Arstechnia
A leaked scan of an upcoming K-mart ad that shows the 20GB 360 Pro model selling for $299.99 has led many to believe that the system will see a price drop at E3. I have since received an e-mail with a copy of a communication from a usually trustworthy source that claims that the price drop is not only pending, but a 60GB Xbox 360 is coming as well. "At E3 Microsoft will make an official announcement that we are dropping the 20GB pro console to $299... As we launch the 60GB SKU throughout July, the 20GB SKU will DISCONTINUE. You will see the new SKU on your 7/1 price list," the communication reads.
20gb 360 is cool, but eventually you fill it up with demos, games, etc. I have the 120 gb hd and its way overkill so a 60 gb unit should sell well as long as the price is reasonable.