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Microsoft cuts Xbox 360 price in US

Rumours prove true as Arcade SKU falls to the magic USD 199 price point

Confirming rumours circulating last month, Microsoft has cut the price of the Xbox 360 console in the US, with the cheapest SKU - the Arcade edition - now falling under the key USD price point.

The Arcade pack retails at USD 199, while the Core edition will sell for USD 299 and the Elite for USD 399 - a move which makes the Arcade the cheapest next-generation console on the US market, and Microsoft will hope to stimulate wider mass-market sales as a result.

"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 in a statement.

"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."

The move follows a reorganisation of the price structure in Japan, as well as the introduction to the US market of the 60GB edition and an initial price drop for the Arcade bundle at E3 in July.

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