In more weekend rumor news, Ars Technica reported on Friday that the 360 would see price drops this September; bringing the Arcade (bare-bones/no hard drive) to a paltry $199, the 60GB PRO to $299, and the 120GB Elite to $399.
These rumors were later backed up on Saturday when VGChartz.com posted the above image which shows the details of the Xbox Arcade SKU. Notice the current price of $279.99 and the “Next Promo Price” for 9/7/08 being set at $199.99.
This story should still be taken with a grain of salt, but an $80 price drop could vastly change the shape of the battlefield for this console generation.