Microsoft announced that starting Friday, September 5 it is cutting the price of its Xbox game system. They are slashing the price of the base console (Xbox 360 Arcade) $80 which will sell for $199, making it the cheapest of the big three game systems.The Xbox 360 and Xbox 360 Elite will retail for $299.99 and $399.99 respectively.

“We are thrilled to be the first next-generation console on the market to reach $199, a price that invites everyone to enjoy Xbox 360,” said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft. “Xbox 360 delivers amazing performance at an extraordinary value with the leading online service and best lineup of games, downloadable movies and TV shows available from a console. The majority of consumers make the decision to buy consoles once the price falls to this mark, making this an important milestone for consumers and the industry.”

As an all-in-one entertainment system, the Xbox not only allows you to play high definition games, but with an Internet connection and a Xbox Live Gold membership, you can download and play multi-player games online. Plus, the ability to view your pictures, video and listen to your music from a plug and play device. Microsoft has also teamed with Netflix to offer streaming movies and TV shows.

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