Rumor: Microsoft gets more competitive next month

Let's face it: each console does something pretty well. The Xbox 360 has Xbox Live, which is a pretty good online service. The PS3 has a very comfortable controller and can do some sweet media stuff. The Wii has an innovative control scheme and No More Heroes. Each console is great in their own way and this current generation's console war has been fun to watch. Now that consoles are getting older, prices are falling and we're anxious to see how the rest of this struggle for market dominance will play out. If this rumor turns out to be true, the Xbox 360 will be the cheapest console on the market, besting the Wii by $50.

Both the Xbox 360 "Arcade" bundle and the "Pro" bundle are supposedly getting their prices slashed. The "Arcade" is apparently dropping from $279 down to $199, while the "Pro" will drop from $349 down to $299. This might come as good news to the Xbox camp, but, should this happen, we wonder how this could affect the sales moving forward.

Could this drive Nintendo to cut the price of the Wii? We doubt it. With the console doing so well, we don't think Nintendo is looking to their competition to determine when they should slash their own console's price. But, if this price drop does spur a big increase in Xbox 360 sales and people start buying less Wiis, we wouldn't be surprised if Nintendo announced a price drop on our around the holidays later this year. What do you all think?

[Via GamePro]