I know I've used this anecdotal story a few times before, but...

Consumers that aren't of your ultra-hardcore fanboy variety aren't always going to care about the contents of the X360 package, but the price.

When I waited in line 14+hrs for my Xbox 360 on Launch Day (Nov 21st, 05), I was AMAZED that when people were given their tickets, and could chose the Premium, or Core unit, that the core sold out almost as quickly as the premium did! I expected a solid line of premium-buyers, and the late people would get the core units...It wasn't the case. The ratio was around 2.5:1 of Premium to Core buyers....I think 15 of the 20 allotted Cores were sold before the Premiums (30 initial units) sold out.

The Arcade is separating itself from the tard pack image of being an inferior console, since it's being priced at a very competitive price. If anything, Microsoft wants the Arcade SKU to be #1. It always allows them to upsell the accessories at a very nice markup, and most people will get the HDD.

final fantasy 13???

Given the relative parity of sales of the two "HD" systems in this generation I wonder if it's even relevant for extremist in either camp to cause an uproar about any change in the relative market share. It seems unlikely that whether the 360/PS3 split is 30%-22% or vice-versa, that it would truly sway any developer from going multiplat. Regardless I imagine it makes some feel better to insist on how these minutiae ensure their purchase was in fact, the best possible choice.

On topic, I can't imagine how a decrease in price could possibly hurt. Given that the price has only come down ~$50, I'd say it's about time too. More Gears players = more head stomps. Not a bad thing, IMO.

I dont think people realize that this is also in NA only. This is the only region where this is happening since the 360 already dropped price in Europe.

The 360 is 3,000,000 away from reaching lifetime sales of the original Xbox in America. Saturation is an issue without casual games that mainstream people actually want to play. The Wii will most likely be much easier to find this holiday season, and the PS3 has blu-ray and little big planet to catch peoples attention.

So while $199 looks good, the Wii is still only $50 more. Saving $50 isn't really worth having your kid miss out on the games he wants on the Wii. Sony has perhaps one of the most mass marketable games ever in LBP, and Gears 2 has a following but completely lost the "WOW" effect the first one had 2 years ago. I personally think Microsoft would have better spend their money they are using for this price drop on acquiring a new studio to make them an innovative new casual IP, not knock offs like Lips.

I really think too little, too late sums up what this will do for the 360. After seeing what happened with the 20gb I don't think its so much pricing anymore as it is demand.

Whoops most important part lol:

So I think it will get a pretty solid boost in September, and around GeOW 2, but at most it will outsell the PS3 by 300,000 in NA. It will still be outsold WW by quite a large margin IMO.

At $199, I will pick up an Arcade Pack. It's a great pricepoint, as I already own the other two systems I can't justify big bucks for another console.

Very much looking forward to it!

how does this relate to the price if the wii?

Hmmmm, I think my sig maybe very unpredictable. I expect America to pounce on the 360 at this price. Even right here on VGchartz many americans who own PS3's on this site are saying they will buy the arcade. This is exactly what M$ wants.

Don't waste your breath with DMJ. He has a 360 and not a PS3 so I say actions speak louder than words! He's the bad luck guy. You know that guy that makes the team lose if he cheers for them. So he cheers for the PS3 so the 360 can win. :-p

But 360 will sell well with the price cut

The price is finally good. Now they just need quieter/slimmer hardware.