As we had previously reported, thanks to the good folks over at Wired’s Game|Life blog, and as Kotaku has pointed out here (among other posts), there has been more and more information leaking about the newest price cuts for the Xbox 360. It seems that as early as this coming weekend, the Arcade version will sell for $199, according to Walmart (as shown in the above scan of the ad starting this Sunday, September 7), and based on the other reports, the 60 GB Pro will retail for $299, with the 120 GB Elite rounding out the group at $399. So yes, Microsoft will in fact be the first to break the $200 price point - if only by pennies and with the crummy Arcade system, but hey, it’s still progress. If anyone bought a 360 recently, I hope you still have your receipts!

Also, no word yet on whether the price drop will affect any remaining 20 gig units, which are currently priced at $299 and would undoubtedly continue to sit there not selling were they to remain the same price as the 60 gig.