Not that we had any doubt but Microsoft has made it official: Xbox 360 price cuts are coming Friday. The entry-level Arcade will remain at $200 while the top end Elite will drop to $300 from $400. The mid-range Pro (reduced to $250 from $300) will be phased out just as soon a they can eliminate stock. As a footnote to the announcement, Microsoft wants to remove all doubt about future project natal compatibility by saying it, "will work with every Xbox 360 sold today and tomorrow." So what's it going to be kids, PS3 Slim or Xbox 360? Blu-ray or Netflix?
Update: According to the BBC, while the Xbox 360 Elite will drop £30 to £200 in the UK, the price of the entry level Xbox 360 Arcade will actually increase to £160 from £130. Ouch.