SEATTLE (Reuters) - Microsoft Corp is set to cut the price of its best-selling Xbox 360 Pro model to US$299 (S$407) from US$349 (S$475), a source briefed on the matter said on Friday.

Microsoft plans to lower the price of the Xbox 360 model with the 20 gigabyte hard drive this weekend before the video game industry's biggest trade show, E3, taking place next week in Los Angeles.

A price cut has been widely reported by popular video game blogs and technology Web sites. Many posted snapshots of flyers from various retailers advertising the US$299 (S$407) price.

A company spokeswoman said Microsoft has nothing to announce at this time.

(Reporting by Daisuke Wakabayashi, editing by Richard Chang)