With the announcement of the new Xbox 360, older models are dropping price by 50 bucks, according to an internal memo from major retailer Target.
The Xbox 360 Arcade is dropping from $199.99 to $149.99 at Target. The Elite will drop from $299.99 to $249.99.
The Modern Warfare 2 Limited Edition will drop from $399.99 to $349.99. The Final Fanttasy XIII and Splinter Cell Xbox 360 bundles will drop the same way.
Obviously these drops are being done to clear the way for the now-shipping new model of the Xbox 360, which will sell for $299. The new black 360 will sell at the price that used to reserved for the Elite. But the new model is superior to the Elite, sporting integrated WiFi and a 250GB harddrive, compared to the price-dropping Elite's 120GB drive. (For more on how the new console differs from the old ones check out Kotaku's New Xbox 360 Video Walkthrough.)