The Xbox 360 "price cut" in July wasn't so much a price cut as it was a swapping of parts, but Ars says there's an actual price cut coming in September. According to their source—who also told them about the impending 60GB switch-out prior to E3—the Arcade is dropping to $199, the 60GB Pro to $299, and the 120GB Elite to $399. So say we all. [Ars Technica]
Where is the free HD-DVD drive with every purchase?
It appears that Microsoft is well aware that they are beginning to lose ground to the PS3 sales and trying to price their system accordingly. That is a smart move, however I think they are underestimating the compelling nature of the Blu-ray drive. Yes, the real money is made on selling games, and the Xbox 360 is second to only the PS2 in that regard. Still, if their goal is to remain in second place on the number of systems sold for the years to come, I am afraid they may have to be a little more bold than this.
Given how many games are sold to Xbox 360 owners, why not sell the Elite system for $250?