In addition to gaming, the Xbox 360 offers the Xbox LIVE service for high-definition TV show and movie downloads. The console also allows Netflix movie downloads, although there are no hi-def titles available yet from the movie rental company.
“We are thrilled to be the first next-generation console on the market to reach $199, a price that invites everyone to enjoy Xbox 360,” said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft.
The Microsoft announcement was only for the U.S. so other countries will have to wait further for the price drops.