According to this MCV story, UK retailer Zavvi has dropped the Arcade Xbox 360 to just £100.
The rest of the Xbox SKU family's dropped as well: the Premium 360 has been cut to £150, with the Elite now costing £200.
PS3 has also been cut, down to £270.
Games have been included in the store's sale, in addition. Gears Of War 2 and Pro Evolution Soccer now cost £29.99.
More through there.