A “mole” — the informant kind, not the small furry burrowing animal — told Ben Kuchera at Ars Technica that Microsoft is planning to further cut the prices of the Xbox 360 in September.

The Xbox 360 will come in three flavors:

• The Arcade: no hard drive, $199
• The Pro: 60 GB hard drive, $299
• The Elite: 160 GB hard drive, $399

The “mole” also whispered that hardware and game bundles will be available for the Arcade, Pro, and Elite models in the 4Q, just in time for the holidays.

The last time the “mole” met Ben in some parking garage he told him that Microsoft was going to release a 60 GB Xbox 360, “and he was right on the money with that one,” Kuchera said. “I’d be very surprised if this wasn’t accurate information.”

If the “mole” is correct, Microsoft will be the first company to release a major gaming console for less than $200, which may truly reach the mass market for gamers and home theater enthusiasts alike.

Nintendo’s Wii, the top-selling game console, retails for $249, when you can find one, and Sony’s PlayStation 3 costs $399 for the 40 GB model (an 80 GB model for the same price may be introduced this fall).

At $199, the Xbox 360 arcade would be a compelling purchase, especially if you can attach your own hard drive to it.

It feels like there’s a music download store on every virtual street corner. Sony Ericsson is the latest to plan an Internet music portal, striking back at rivals Apple and Nokia.

Sony Ericsson plans to release an upgraded PlayNow service next spring, The Wall Street Journal reported. The new music service will be for both computer and mobile handsets.

What’s interesting to note is that PlayNow will have the support of not only Sony BMG Music Entertainment (duh) but also the three other major music labels — the Universal Music Group, EMI Group, and Warner Music Group Corp.

Continue reading “Sony Ericsson plans a music store of its own” »