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$199 Xbox 360 Slim Confirmed - IGN

Xbox 360 4GB Console

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Q: Will you sell a $199 version of the new Xbox 360

Recalibrating the rumor clock, Microsoft will offer a $199 version of its new piano-black, slim-style Xbox 360 this fall. That's based on a marketing Q&A document that reportedly answers the question "Will you sell a $199 version of the new Xbox 360?" with a pretty unambiguous "We will offer a $199 Xbox 360 this fall."

You probably heard Microsoft was discontinuing its older $299 Elite and $199 Arcade Xbox 360s, and that it was fire-selling them for $249 and $149 respectively.

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Update: Microsoft just responded to a confirm request with this: "We will offer a $199 Xbox 360 this fall. We have no other details to share at this time."

Oh Walmart how we love your ridiculous electronics sales, especially when they blow away the competition with such ridiculous offers as the $199 Microsoft Xbox 360.