Microsoft cuts Xbox 360 prices (again)

Make that two price drops in two months. When Microsoft said it would start selling the 20GB Xbox 360 for $299.99 "until supplies last" in July, everyone just assumed the new 60GB model would take over at $349.99 and the pricing structure would eventually return to normal. Not so.

As Shacknews reports, Microsoft now plans to drop the 60GB Xbox 360 to $299.99 and push down the Xbox 360 Arcade from the existing $279.99 to just $199.99. Those prices are already up on the official Xbox 360 website, which says the cuts will become effective tomorrow (September 5). The 120GB Xbox 360 Elite will also drop in price, albeit only from $449.99 to $399.99.

With these new prices, Microsoft seems to be really turning up the heat on Nintendo. The Japanese console maker's hugely popular Wii has remained at $249.99 since its launch in November 2006, but Nintendo may now have to play ball and at least match the new Xbox 360 Arcade pricing.

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