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Occasionally Microsoft's price cutting strategy can feel almost like an insult to we English folk. First Japan sees a pretty huge set of cuts, introducing the £100 Xbox 360 Arcade and now America has been promised even cheaper consoles tomorrow. It's so unfair (he says, stamping his feet).

As of tomorrow, then, the Xbox 360 Arcade will drop to $199 (~£112), the standard Xbox 360 to $299 (£168) and the Xbox 360 Elite to $399 (~£224). As per the Japan price cuts, the Arcade SKU will now be the cheapest console of the current generation - cheaper even than the Wii!

According to Microsoft, the sub-$200 is extremely important, and many consumers make the decision to buy at this price. Certainly, going by rough UK equivalents, £150 to £100 is definitely a more significant drop than £200 to £150. Most people would rather see a cheaper console than a larger hard drive, too. Of course we'll probably be waiting a while for UK price cuts, so it’s a bit of a moot point.

I'll warrant it'll be a long time before the PlayStation 3 gets that low, certainly. Although rumour has it Kingdom Hearts 3 is in development as a PS3 exclusive, so it's not all bad news.

In related news: it looks like even Microsoft is prone to a typo every now and again - Xbxo 360 anyone?

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