This might even be huge in JAPAN. My chance to finally get a 360.

Do it, Ms got nothing to lose.

Based on what little we know about a potential slim model I don't think they're going to discontinue the original models. Assuming that the the proprietary MS HDD are not the right size for the slim and external enclosures are it's only option it would be incredibly stupid to limit customers to only one model with a maximum of 32 gigs of space. Although I'm somewhat surprised to see it only dropping by $50 if this is true. With a MUCH smaller motherboard, no built in HDD, I'm guessing significantly smaller overall size, and not bundled with Natal I would have expected it to be $100. Unless the slim includes WiFi. This is also backed up by Ballmer's comment about multiple entry prices and form factors. :Edit: Actually after reading over that Ben Heck article probably only slightly smaller overall size and possibly a small internal HDD.

If this is true, holy fucking atom bomb.

When M$ launch the bundles, I said it was to startt cleaning out inventory...$149 is much cheaper than I would have imagined, but maybe the REALLY want to clear out the excess inventory to clear the glide path for the new 360.

They did say that Natal would be released with an updated Xbox, but one which wasn't more powerful than the existing 360, allowing all Natal titles to be backward compatible.
Is a smart move as the $150 price zone opens the 360 up to many people. However, still no bluray and with 37 million already out there, is hard to know how many people have been holding back due to price or other reasons.

Just like I called it when they announced Natal at E3 2009, I think its pretty obvious what MS is trying to set up for Holiday 2010

-$149 Arcade Slim SKU

-$299 Elite Slim SKU w/ Natal bundled

I personally think that MS will dominate the holiday w/ a combo of price cut, Slim redesign, amazing holiday line-up, and Natal

I can see them doing this in a heartbeat. by placing the Console at 149 it makes it a clear choice for the casual market as well as PS3 owners looking to get their hands on MS exclusives. They lost some? ground when the PS3 got the price cut so this would eliminate any chance of Sony catching up.

While you are going to get arguments that by the time you get NATAL and other attachments, the system is as expensive as a PS3, that's not how consumers see it. Would be a good move, whether it happens or not, that's for time to decide.

What about thee hdd drive,they cant shrink it?

That would be some cheap great entertainment. If a system is sold that low than a game should not be $60.