According to a Dutch blog, Microsoft is planning to cut the price of the Xbox 360 to €199. This would make the Xbox 360 €50 cheaper than the Nintendo Wii. Recent rumors were suggesting that Microsoft was planning to cut the price right before the launch of Grand Theft Auto IV, to win more potential buyers.
According to the blog keeper, he has gotten word from a very reliable source close to Microsoft that the Xbox 360 Arcade will see a price cut to €199. This price cut would go in affect as of February 14. Microsoft decided to cut the price after Sony was reporting the PS3 would surpass the Xbox 360 in total sales about late summer 2008 in Europe.
Any plans for a price cut for the Premium and Elite models are highly likely according to the blog. No mention was given about a American price cut, and it seems this price cut is purely intended for Europe.