With the help of several of our sources, we are now confirming as we had already let you in on, that Microsoft will be doing away with the Xbox 360 Pro and replacing it with the Xbox 360 Elite model going forward. At least in the near term, buyers will only have a choice between the Arcade and Elite models.

The latest news that we have been able to uncover indicates that the price drop will be made official on August 30th with retailers already gearing up for their weekend ads. The only elusive part of this puzzle is how much retailers with Xbox 360 Pro units on their shelves have been instructed to slash the price of said inventory. Our sources tell us that remaining Pro systems will be slashed to $249, but could go as low as $219, if necessary to move them out.

It is expected that Microsoft might officially announce the move next week at the upcoming Gamescon event. The move by Microsoft looks to be a first strike to deal with Sony’s upcoming release of the lower priced PlayStation 3 Slim. Our sources tell us that Microsoft is planning to hold the $299 price point on the Xbox 360 Elite through the holiday season.