Xbox 360 now $199

Effective today, Microsoft has cut the price of it’s Xbox 360 game consoles, with the lowest priced Xbox 360 Arcade option ringing in at $199, down from the previous held price of $279. The Xbox 360 Pro and Elite prices were also chopped by $50, down to $299 & $399.

From the Microsoft press release, "History shows that more than 75 percent of all console sales happen after the price falls below the $200 mark. For millions of consumers who have been waiting for the perfect time to buy an Xbox 360 console, their moment has finally arrived."

I can certainly understand why Microsoft has decided to cut their console prices, as the Sony PS3 has outsold the Xbox 360 in the past few months. And while some might cry ‘desperation’ at the sight of these price cuts, I believe that it is a good thing.

The lower priced 360’s will allow more gamers to upgrade to a current generation console and puts more pressure on Nintendo and Sony. In response, Sony might be forced to drop their PS3 console pricing, or else risk being outsold by the inexpensive 360’s. It will be interesting to see if the price cut will shoot Xbox sales above and beyond PS3 sales once again.