Xbox 360 Price Cuts Official - Now The Cheapest Next-Gen On Offer

There have been rumours about Microsoft dropping the price of the Xbox 360 for a while now, but it's now official (in Australia at least). What's more, the price cuts actually make the Arcade model cheaper than Nintendo's Wii, making it officially the cheapest way to get your next-gen gaming groove on.

The Xbox 360 Arcade will now set you back $349, while the Pro model now costs $499. For those of you who crave the larger hard drive, the Elite now costs $649.

There's no change to the Pro's hard drive size though - it's still 20GB (rather than the rumoured 60GB.

If all this sounds too good to be true - it is, in a way. Logan over at Kotaku is reporting that his sources are telling him that the Arcades on sale are the older models that lack a HDMI output. Not so big a deal if it's for the kiddies in the rumpus room with the CRT TV, but as your own entry into the world of Xbox, not so cool.

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