When it comes to price cuts, Microsoft just can't seem to keep a secret.  After yet another series of all-but confirmations, Microsoft today finally confirmed that the Xbox 360 is receiving another price drop.

As of this Friday, September 5th, the Xbox 360 Arcade will now retail for $199.99, putting the console as the first to reach the sub-$200 barrier this generation and undercutting Nintendo's Wii by $50.  It of course comes with the console, wireless controller, memory unit, and five Xbox Live Arcade titles.

Meanwhile, the normal 20GB Xbox 360 will now retail for $299.99, with the Elite coming in at $399.99.  This prices the Elite even with the 80GB PS3, giving Microsoft a temporary lead in overall hard drive space at the high end.  

You'll find more in the press release below:

Imagine if friends and families had the ability to instantly watch movies from Netflix, live out their musical fantasies through Rock Band 2 and Lips, star in their own Hollywood classics with You're in the Movies, or have the power to never miss the latest episode of Heroes—all from one device, starting at $199.*

Xbox 360 is the most affordable next-generation console on the market, offering something for everyone.

That device is Xbox 360®, and today Microsoft announced lower retail prices for the gaming and entertainment console in the United States, which offers the leading Xbox LIVE® service. Beginning September 5, Xbox 360 Arcade retails for the estimated price of $199.99, the Xbox 360 console for $299.99, and Xbox 360 Elite for $399.99.

Industry Milestone
"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."

History shows that more than 75 percent of all console sales happen after the price falls below the $200 mark. For millions of consumers who have been waiting for the perfect time to buy an Xbox 360 console, their moment has finally arrived. At $199, Xbox 360 is the most affordable next-generation console on the market, offering something for everyone with the most dynamic, interactive entertainment experiences available.

Digital Entertainment Powerhouse
Xbox 360 Arcade plus a 12-month Xbox LIVE Gold Membership and a Netflix subscription costs $100 less than 12 months of digital cable. Xbox 360 invites everyone into a limitless world where the best games, movies and TV shows can be enjoyed live side-by-side with your personal pictures and music library.

No matter what kind of game makes your heart race, Xbox 360 has something for everyone. Music lovers can play new games such as Lips, the only singing game that offers wireless motion-sensitive microphones and the ability to sing along to your own music collection.**

If you're ready to rock and roll, Guitar Hero® World Tour and Rock Band 2 let you virtually step into the shoes of your favorite bands. Enjoy family-friendly games such as the big-screen movie-maker You're in the MoviesGears of War® 2, the biggest entertainment event of this holiday season. With Xbox LIVE Arcade, downloadable games are available that the entire family can enjoy—titles such as Braid, Castle Crashers, Geometry Wars: Retro Evolved 2, PAC-MAN Championship Edition, and UNO®.*** and blockbusters such as

Hi-Def Movies and TV Shows
Whether you want access to streaming movies and TV shows or a library of high-definition content, it's on Xbox 360. Starting this fall, Xbox 360 is the only game console to offer instant streaming of more than 12,000 feature films and television shows from Netflix.****

In addition, the Xbox LIVE Video store has more than twice as many hours of high-definition (HD) movies and TV shows than the nearest competitor.***** Download your favorite TV shows such as 30 Rock, The Office, and House, or even get a little old school with episodes of The A-Team. If it's movies you want, check out the latest blockbusters and the best in family films, cult classics, horror and much more, all available through Xbox LIVE and Xbox 360.