Digital Home Thoughts: XBox 360 Pricecuts

"You knew it was coming, but Microsoft has made it official: the Xbox 360 is officially going to drop to as low as $199 starting Friday, September 5 in the U.S. The three currently offered SKUs will get a price drop in North America, following multiple retail leaks and a similar pricing adjustment for the Japanese market. The new MSRP for the current line up is as follows. Xbox 360 Arcade - $199 Xbox 360 - $299 Xbox 360 Elite - $399"

While not a surprise, I think this a pretty good move by Microsoft going into the end of the year. The $199 price point is psycologically important in that it is cheaper than the Wii, which STILL might be in short supply this holiday season.