The rumored Xbox 360 Price-Cuts in the United States are finally official. Starting tomorrow September 5th you can buy a Xbox 360 Arcade for $199, currently selling for $279.
This new dramatic price-cut brings the price of the Xbox 360 way below that of a Nintendo Wii. Additionally with $199, Microsoft is below the magic $200 barrier. I am pretty sure this new low pricing will drive a lot of Xbox 360 sales this fall.
The other two Xbox 360 console versions also get a price-cut. The Xbox 360 console with 60GB will sell for $299.99 (was $349.99), and the Xbox 360 Elite for $399.99 (was $449.99).
Remember that the new Xbox 360 console has a 60GB HDD. Some retailers still stock the 20GB Xbox 360 and sell that for $299.99.

The new Netflix instant video streaming will also work on the Xbox 360 Arcade even though that Xbox 360 has no hard-drive. You can watch movies but not download them. To use Netflix you still need a Xbox LIVE Gold Membership and a Netflix unlimited subscription plan.