During its E3 conference this year, Microsoft confirmed that its 20GB Xbox 360 would be dropped down to $299 and that (once the stock is depleted on that model) a new 60GB unit would take its place for $349. Now, in a rather amusing “Batman-esque” piece, Ars Technica is reporting that Microsoft has some further price cuts in store for early September.

According to Ars’ anonymous “mole” – which has a proven track record, I might add – Microsoft will reduce its HDD-less Arcade model to $199, while bringing the 60GB unit down to $299 and the Elite 120GB to $399. If true, Microsoft will certainly reach out to the mass market with its Xbox 360 being priced lower than Nintendo’s Wii – which sells for $249 and isn’t likely to receive a price cut anytime soon.

In addition, the mole revealed that hardware and game bundles for all hardware versions are coming in the fourth quarter, just in time for the busy holiday season.