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Here's the press release, as reported by Kotaku.
Coming off the heels of the console price drop last week, Microsoft Xbox 360 sales have surged, with retailers reporting over 100% sales lift for all Xbox 360 models compared to the previous weekend. Additionally, retailers are reporting that between Friday, Sept. 5 and Sunday, Sept. 7, some Xbox 360 models were selling at six times the rate they were the weekend prior.
At $199, Xbox 360 is now not only the most affordable next-generation console available, but it also packs more entertainment punch per dollar than any other consumer electronics device connected to your TV. Xbox 360 invites you into a limitless world where the best games, movies and TV shows live side by side with your personal pictures and music library, and the experience is ready to share anytime with friends in your living room or across the globe through Xbox LIVE.
Microsoft keeps using "next-generation" when these consoles have been around for some time. They really ought to get over that. Also, the $199 price does indeed make it the lowest priced current-gen console, but that's just the Arcade version.
The new price points, BTW, are: