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360 Arcade effectively $100 at Wal-Mart this weekend

[UPDATE] Megaretailer offering $100 online gift card with purchase of $200 hard-drive-less edition of Microsoft's console--but offer valid in stores only.

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It took more than eight years for the PlayStation 2's price to drop to $99.99, but the Xbox 360 will hit that price point this weekend--for a limited time at one retailer. According to its official Web site, Wal-Mart will be bundling the $199.99 Xbox 360 Arcade with a $100 gift card this weekend. [UPDATE] Although GameSpot initially reported the system would come with a gift card, it will in fact come with a Wal-Mart gift eCard, which only can be used to buy goods on Wal-Mart.com.

Not bad, not bad at all…
Not bad, not bad at all…

While exceptional, the deal does have two major caveats. One, it is valid in stores only, meaning that it will be good only as long as supplies last at each particular location. Two, it is valid only for the hard-drive-less Xbox 360 Arcade, not the 120GB HDD-Equipped Xbox 360 Elite, which Wal-Mart currently sells for $299.99. However, Xbox 360 owners with older consoles no longer covered by the console's three-year warranty may want to pick up an Arcade with an HDMI port and newer, less-problem-prone chipset.

To find the nearest Wal-Mart, visit Walmart.com and click on the "store finder" link.

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