Earlier this month we reported on the rumour that Microsoft may be planning a slimmed down version of the Xbox 360. Inside sources reportedly stated that Microsoft would not only release a trimmed down console, but that it would be accompanied by a price reduction to $149.

Part of Microsoft’s supposed pre-slim strategy is to get rid of current stock on all its Xbox 360s by reducing prices. A new listing on US mega retailer Gamestop’s website has a new Xbox 360 Arcade bundle selling for just $99 (R730).

The listing is still up, and from the looks of things, US citizens can now pre-order the bundle, which either comes with a copy of Viva Piñata or Banjo Kazooie.

This would not be the first time that a retailer has let slip on a price cut before an official announcement has been made, and if this rumour bears any truth, then Sony has reason for concern. While the launch of the PS3 Slim and price cut made a significant impact on the market in 2009, Microsoft will be tough to beat with an Arcade at under $100. Furthermore, with plans to bring USB storage capacity to the Xbox 360 in the next few weeks, there has never been a better time to buy an Xbox 360 Arcade.

The Xbox 360 Arcade currently retails locally for around R2300, but if the US price drops to $99, then we can anticipate local prices to drop to around R1500. At less than half the price of a PS3 Slim, and new USB storage functionality on the cards, the Xbox 360 Arcade will be difficult to beat.

All is likely to be revealed at Microsoft’s E3 presentation in June.

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