Without seeing the alleged Walmart ad with my own eyes, this is still in BIG RUMOR form. But according to a very small picture (bigger version after the jump) that has been floating around online, the Xbox 360 Premium may be dropping $50 to $350. UPDATE: More unconfirmed intel informs us that the drop is for August 8th ad. That lines up with rumors we heard before.

While you could score a Premium for below the standard $399 price, this was only possible through Overstock coupons or various retailer-specific discounts. If Walmart's listing is true, this would signify an actual price drop on the system. We've emailed our pals at Microsoft, and will keep you updated if we hear anything specific either way. [cheapassgamer]

Contact information for this author is not available.