A Few days ago Microsoft announced it would be cutting the price of the Xbox 360 in Japan, now the discount comes to America.  Microsoft is trying to hit the sweet spot of under $200.  According to Microsoft, previous consoles, a la PS2 have shown that the $199 price accounts for 75 percent of console sales.


The Current Xbox 360 Arcade which includes no hard drive, but includes a memory card and games, will be down to $199 from its current price of $279.  The Xbox 360 Pro will now cost $299 and the Elite will cost $399, both of which receive a $50 price drop.  


This is the first time a current generation console is cheaper than the Nintendo Wii currently costing $249


The new prices go Live on September 5th.


[via Reuters]