In a recent interview with Bloomberg, Microsoft’s David Hufford mentioned a “price drop” on the Xbox 360, which got people and the media excited. But he now clarifies that his comments were taken out of context, saying that both the Xbox 360 and the Elite versions are selling great, and that there is now need for a price cut at the moment.

But that doesn’t keep the analysts from further speculating about a possible price cut, which could come as early as this summer, and as late as this fall, in time for the holiday season. There’s little doubt that the holiday season will be highly competitive, and analysts expect both Microsoft and Sony to cut prices on their respective consoles.