We’ve known for quite some time that Microsoft was preparing to drop the prices of their various Xbox 360 consoles and now it has happened (although only in the U.S.). This comes at a convenient time shortly before the start of the holiday season, and they’ve managed to get the price down to the “sweet spot” for gaming consoles. The sweet spot is under $199 which is what their Arcade version will be selling for.
With the drop in price, we immediately thought of the fact that the Xbox 360 can be used as a media center extender. After looking at other media center extenders available, the Xbox 360 Arcade version is now one of the most affordable options for those who want to extend the capability of their Media Center PC’s. Some of the most popular options like the Linksys DMA2100 or the D-Link DSM-750 both cost around $250 while the HP x280n MediaSmart Connect will run about $350. While the Arcade version of the Xbox 360 doesn’t come with a hard drive (neither does the Wii), it is still a great value at the new price of $199.
The complete line-up of pricing for the Xbox 360 is:
- Xbox 360 Arcade – $199.99
- Xbox 360 – $299.99
- Xbox 360 Elite – $399.99
Microsoft now offers the most affordable gaming console on the market, even cheaper than the Wii. Could this possibly mean that Nintendo will consider dropping the price of the Wii before the holiday season and their two-year anniversary? We’re doubtful because even today, some people are still having a hard time getting their hands on one.
So, what do you think? Is the Xbox 360 Arcade version a great bargain at $199.99 even though it comes with no hard drive?

Thanks for posting! My XBox died 2 months ago, and because I bought it refurbished they wouldn’t fix it. So, I decided to wait until they dropped the price. I will finally have a DVD player again!
You really can’t do anything without the hard drive, gaming wise, and with the 20GB running at around $90 I think the Arcade is now better priced, just not the sku I’d recommend someone to get.
Funny you are excited to have a DVD player again — is the gaming part of it 2nd on the list of priorities? If so, we can relate. We bought an Xbox more for its media center extender capabilities than we did for the gaming, although Ryan was pretty excited to be able to play Halo!
If you’re a casual gamer, you could definitely get by with the Arcade version, but you’re right, it’s not the optimal console to get.
Haha. I hear Ryan is getting pretty good at Halo these days! I tend to play only when I’m bored or need to just veg-out. Otherwise it’s more of a distraction keeping me from doing (more?) productive things.
As for the DVD player? It’s harder to watch a movie on a laptop comfortably, and girlfriends typically don’t want to watch you play Tony Hawk for 3 hours!
I actually haven’t played Halo in like two months now. I’ve just been so busy that I haven’t really had any time to do it. It is a great way to kick back though.