We had a feeling this was coming, and now it's official. With the launch of the new, slimmer Xbox 360 console, Microsoft went the sensible route and trimmed $50 off the price of the current-gen Arcade and Elite models, which now run $149 and $249, respectively.
The price cuts apply to Limited Edition consoles too, such as Modern Warfare 2, Splinter Cell, and Final Fantasy XIII bundles. These packages now cost $349 instead of $399, assuming you can find a vendor who still has these in stock (and it's not too difficult just yet).
According to Fudzilla, the price cuts are just the beginning. Citing un-named sources, the news and rumor site claims Microsoft will soon discontinue the older Xbox 360 consoles and push just the new slim version, which will likely come in bundles of their own.