The top of the line Elite model, with its 120 GB hard drive, will drop in price from $400 to $300, nicely aligning it with Sony's PS3 Slim. It's not a pure price-slashing, though: Microsoft is removing the component and HDMI cables from the box, leaving only composite ones.
Oooh, finally PS3/Xbox 360 price cut war begins. Sounds like high time to buy one of those. Though I repeatedly say it's too late, but better late than never :)