Remember the rumor we reported on that said that extensive price cuts are in the works for the Xbox 360? Well, Major Nelson announced today that this is indeed the case, as the cuts will be official starting on September 5. Check out the new prices below:

• Xbox 360 Arcade - $199
• Xbox 360 - $299
• Xbox 360 - Elite $399

This means that the Arcade is now cheaper than the Wii, so it will be intriguing indeed to see how much of an effect this will have on the sales figures for the coming months.

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