Retail sources tell us that Xbox 360 console availability seems to be returning to normal levels once again. Most Xbox 360 model configurations are once again flowing into retailers at a regular rate, which is a far cry from where they were at the end of the holiday season.

One retail source we spoke with told us, “Xbox 360 inventory seems to be starting to get a bit more stable, as we have availability to consoles once again; but Kinect availability, while better, still isn’t where we would like it.”

It seems that while the availability of the Kinect add-on is better than it was a month ago. It isn’t where many independent retailers want it to be, but it seems to be improving. It is expected that by the time the next big wave of Kinect titles hit, inventory levels for Kinect should be much better.

Sources we spoke with whisper to us that they are expecting Microsoft to make some changes to the Xbox 360 model lineup. It is suspected that they will pair the Xbox 360 console model offerings from four down to three by dropping one of the Kinect bundle units and keeping both the 4G console and the 250GB hard drive console. Of course, as the new models are starting to hit retailers, the 250GB hard drive model does not include the Forza 3/Alan Wake bundle that was offered during the holidays.

One other thing that retailers seem to continue to have problems getting are the Kinect mounting and stand solutions that are Microsoft approved and offered by PDP. Many customers are reportedly asking for these products, but the distribution and availability of these offerings apparently continues to be tighter than many retailers would like. The TV Mount, Wall Mount and Floor Stand offer a variety of solutions for the placement of the Kinect sensor and solve the problem that many are having on finding a good place to place the sensor.