Microsoft aims for the casual: Xbox 360 now cheaper than Wii

Following drastic price cuts in Japan, Microsoft has finally confirmed that its US customers can look forward to cheaper-than-ever Xbox 360 consoles as of tomorrow, September 5th.

Microsoft's entry-level Xbox 360 Arcade, mid-range Xbox 360 and high-end Xbox 360 Elite, are to be priced at $199.99, $299.99 and $399.99, respectively.

Eagle-eyed followers of the so-called console war will note that the all-new Arcade pricing makes the Xbox 360 the cheapest next-generation console of them all - some $50 cheaper than Nintendo's Wii.

According to Microsoft, "history shows that more than 75 percent of all console sales happen after the price falls below the $200 mark". It will be hoping the low prices help keep its console ahead of Sony's PlayStation 3, though it has little chance of catching the all-conquering Nintendo Wii.

Having launched in 2005, it has taken the best part of three years for the Xbox 360 to fall $100 in price, and Microsoft is re-aligning its product as a family-friendly console for the casual gamer. Though the hardcore titles such as Gears of War 2 remain key to the console's success, Microsoft will launch an all-new Xbox 360 dashboard later this year in the hope of making its console easier to use for the casual gamer. In addition, it will launch a series of casual games such as the upcoming "Lips" - a karaoke-style game with mass appeal.

Microsoft is yet to announce any price cuts for the European market, but we made the following prediction early last month:

With the Xbox 360 falling below the £100 mark in Japan, these predicted UK prices may no longer be a stretch of the imagination.

Official press release: The Moment Is Now: At $199, Xbox 360 Invites Everyone to Play