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Microsoft has reduced the price of the Xbox 360 Arcade to 19,800 yen, which equates to $183 US Dollars, in Japan. This means that the console is the first of the latest generation parts to drop below the $200 US Dollar mark. This news was leaked earlier today following a story in Japan's Nikkei financial newspaper that was also picked up by Forbes, causing Takeshi Sensui, Xbox Japan general manager, to joke onstage that his announcement was the "official" one, during a media event held in Tokyo today.
Apparently this low price is to propagate the console, preparing a market for the launch of Square Enix and Tri-Ace's Infinite Undiscovery RPG, which comes out by September 11. In addition, on that date Microsoft will release a new Xbox 360 model equipped with a 60GB drive that will replace the current 20GB 360. It will be priced at 29,000 yen ($275) against 34,800 yen ($320) for the 60GB model. Last but not least comes Xbox 360 Elite 120GB which will be getting a price reduction of almost $80, down to 39,800 yen ($367).

View at TechPowerUp Main Site
Apparently this low price is to propagate the console, preparing a market for the launch of Square Enix and Tri-Ace's Infinite Undiscovery RPG, which comes out by September 11. In addition, on that date Microsoft will release a new Xbox 360 model equipped with a 60GB drive that will replace the current 20GB 360. It will be priced at 29,000 yen ($275) against 34,800 yen ($320) for the 60GB model. Last but not least comes Xbox 360 Elite 120GB which will be getting a price reduction of almost $80, down to 39,800 yen ($367).

View at TechPowerUp Main Site
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