Xbox drops to $199, Wii no longer holds the price line

Microsoft has dropped the price of its Xbox 360 entry level gaming console. Starting this Friday, Sept. 5, the Xbox 360 Arcade will retail for $199, the Xbox 360 will sell for $299, and the Xbox 360 Elite will retail for $399. The Xbox 360 Arcade is now less expensive than the most popular gaming console Wii.

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.

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