As we said the other day, Microsoft will cut Xbox 360 prices to $199 on Friday making it $50 cheaper than the Wii. The 60GB Premium version will be $299 and the Elite will be $399. With the 80GB PS3 coming in at $399, the console race ought to get really interesting this holiday season!

The price cut should provide a jolt for Xbox 360 sales. In addition to the Xbox 360 Arcade cut, Microsoft is also trimming the price of its mid-range Xbox 360 model to $299 from $349, and its high-end Xbox 360 elite to $399 from $449. GameStop's McKenzie expects Xbox 360 sales at his stores to jump anywhere from 1.5 times to three times current levels.