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With the holiday season approaching, there isn't a better time to do some price slashing. It was revealed, through a SKU screen shot that the XBOX 360 Arcade edition will go down to $199 on September 7th.

They know it will increase sales signifcantly as they expireimented in Europe at that price and saod %100 more consoles in just 6 months.  Some speculate that Microsoft is losing money on these editions as it cost around $50 more to build them.