XBox 360 slashes its price

Microsoft is cutting the price of the Xbox 360. Beginning Friday, the Xbox 360 Arcade will sell for $200 rather than $250.

The 60-gigabyte version will now sell for $300 instead of $350, and the Elite 360 will take a $50 price cut and sell for $400. Microsoft says in a statement, "History shows that more than 75 percent of all console sales happen after the price falls below the $200 mark."

By comparison, the 80-gigabyte PlayStation 3 sells for $400, and the Wii retails for $250. Sony doesn't plan to cut the price of the PS3, and is fact planning a limited-edition 160-gigabyte version later this year that will be bundled with a game for $500.


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