Almost certainly, hence why the price sounds too ridiculous for people to believe.  Having just become profitable recently and still outselling their primary competition it would be crazy.  For those people aiming for the 360 to go for the Wii's sales numbers, even Microsoft stated they cannot compete with the Wii so it's unlikely they will be so extreme to try and chase them.

As others have said btw, if it happened then it would be a business decision not some dirty cheating underhand tactic.

I never heard about that website.

Tee hee I know exactly where that Gamestop is.

Arcade hiting $99? Looks like it's time for me to "Jump in"! My XBL ID will be: .... nothing I'll never pay for online gaming. But heck it will be nice to get ME for like $20 bucks! Hmm and Fable 2. Very nice.... Wait. Could this really happen?

$99 Arcade? If I didn't think it would case rather big losses, I might actually take it for real. That said, there's no way they're doing it due to the losses it would cause. If we forgot the losses, though, they'd gain market share pretty quickly AND gain some brand name. Well, if they had more casual games that is...

I don't get this obsession with price cuts. Suddenly all we hear about is price cuts.

Will this happen on April 1st?

people will buy a $99 360 like crazy but selling it at a loss will put them in a much worse position than SONY is with the ps3

so what, PS2 will drop to $79, come on now. This isnt happening.

a $99 360 shouldn't affect he other consoles' sales, because it'll be so cheap that people will be able to afford a $250 wii or $300 ps3

Just to point out that a "more significant" price cut doesn't exactly have to mean greater in dollar amount.  If it's a greater % drop, it could be more significant, or maybe just the psychology of the Arcade getting down to 129 or 149 could be "more significant" than a $100 PS3 price drop.  I'm not suggesting that 360 won't see a larger drop by dollar amount, just pointing out that that wasn't specifically said.

Honestly, for competitive advantage, I think that lower console prices are beneficial for the company -- get a jump in install base and then start selling games, movies etc to the new owners. 

I may just buy a cheaper hopefully non-RRoD 360.  I wouldn't buy new games, though, or pay for Live when I have PSN.