The undeniable rumor, as expected, has come to be true and Microsoft’s Major Nelson has revealed September 5th as the day the Xbox 360 shall drop in price. Although not surprising, this is really the first good price drop for the 360 hardware which does not involve phasing out an old product line.

The price breakdown is as follows:

• Xbox 360 Arcade $199
• Xbox 360 $299
• Xbox 360 Elite $399

This is a US price cut, Japan had their price cut last week. We’re not sure about how the rest of the 360 regions will shake out, but they’ll probably end up with a price line much like the one above.

Anyone surprised? Anyone going to run out and buy a 360?

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Joe said:

I think it's a good idea for Microsoft to drop pthe price of the Xbox 360 to compete with Sony.

I still think the prices are too high, I would've hoped to see around $200-$250.

No, I wont go out and buy a new 360 because I already have one.

$200 would be a sweet price… probably will be a year or so before we see that

jonahfalcon said:

Buy the Arcade ($199) and get a cheap 20GB HD on eBay. The Arcade has an HDMI port, too.

That's a good work around to the pricing situation. But, the higher end console looks cooler with the platinum finish on the CD deck and such, I'd rather get a real in-box solution. I've also, recently, had enough troubles on eBay that I'd rather buy brand new in an all-in-one bundle.

Not that I'm looking for a third console, though, just say'in.