As we told you in the post “When To Purchase Electronics“, the electronics companies tend to drop their prices just before the holidays, and it looks like Microsoft is going down this familiar road with their popular Xbox 360 gaming platform.

Rumors are circulating everywhere that the Arcade pack, the cheapest of the Xbox 360 bundles, will be dropping in price to $199 with a larger focus on being a family friendly version of the system.  This is viewed to be a direct attack on Nintendo’s Wii system, but seeing as you still can’t find a Wii on a store’s shelves, it’s a bit one sided of a fight.

This drop is expected to happen in September, right in time for the key holiday shopping season, so it seems the usual theory of pending price drops is going to hold true.  Keep holding out on those major purchases, the price drops do appear to be on their way.