If flyers now circulating the web are to be believed the Xbox 360 is undergoing price drops at every level, with the Arcade going to $199. That should kick the console wars up a notch as that makes it even cheaper than critical and financial darling Nintendo Wii.

The new price points featured in a leaked Radio Shack circular running Sept. 7 put the 60 GB Pro at $299 and the Elite at just under $400. This puts some pressure on Nintendo whose console clocks in around $250. Sony execs are still saying there is no price cut coming up for the PlayStation 3, in the uncomfortable position of running third in the console wars.