Rumours of a large Xbox 360 price drop

There are currently several rumours flying around the net that there could be a large price drop for the Xbox 360.

Rumour has it Microsoft might be planning another rather significant slashing of prices for its console again, with the ‘entry-level' arcade model suggested to be a bargain basement $199 (£100).

The PS3 seems to be gaining momentum recently so this could help Xbox maintain sales.