All models of Xbox 360 will be getting significant price cuts on Friday, September 5th. Due to flyers from retail chains last month, this wasn't really a surprise but now Microsoft has made it official.
As announced by Major Nelson, the Xbox 360 "Arcade" will now cost $199, the 60 GB "Pro" will cost $299, and the 120 GB "Elite" will cost $399. That makes the 60 GB "Pro" the same price as the recently discontinued 20 GB "Pro" - guess they're done trying to sell those off.
Sony already said that they won't drop their console prices this year so unfortunately, there's no price war on the horizon. We'd call up Nintendo and ask them if they're cutting prices on the Wii but they probably wouldn't hear their phone over the roar of the money counting machine.
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