A big question answered…
Q: Will you sell a $199 version of the new Xbox 360?
A: We will offer a $199 Xbox 360 this fall.
Kotaku claims 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.”
There were no further details about this console’s features, such as hard drive/onboard storage (if any) or WiFi, which is 250GB and internal, respectively, on the new Slim design. A $199 model would probably lack both. The current Arcade layout supports HDMI output so that would probably carry over, at least.