Fourth Xbox 360 in the Works?

An image from Microsoft's E3 event rehearsal hints of a new model in the gaming console line.

An image taken from Microsoft's E3 Press rehearsal and originally published to an online company image gallery shows a peculiar fourth Xbox 360 on stage suggesting that Microsoft will add yet another model to its current line up of three machines.

The image, entitled "Pick Your System" and originally posted to a Microsoft Flickr account, shows four dimly lit Xbox 360s on stage whereas the company currently only offers three versions; a Core model for US$299, a premium model with hard drive for $399, and an Elite model with a larger capacity hard drive and HDMI support for $479.

The report surfaced amid rumblings that Microsoft will drop the price of existing Xbox 360 models in the wake of Sony's $100 PS3 price drop on Monday. Microsoft's E3 Press Briefing starts tonight at 8:30 PST. Stay tuned for additional coverage as it breaks.

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