Microsoft Knows When Xbox 360 Will Hit $199

Microsoft has figured out when Xbox 360 will hit $199. They have it written down.

Shane Kim, former Microsoft Game Studios leader turned Microsoft corporate VP of strategy and business development, told me that $199 is the price point where consoles do the most business.

Xbox 360 is some time off from hitting $199, but Kim said they're on their way. When Microsoft's console hits that mainstream price point, however, remains unkown -- and Kim wasn't budging at a lunch today with a bunch of game journalists.

Sure, it might take a while for Xbox 360 to hit $199, but when PlayStation 2 still hovers above $99 with no change in sight, you might not blame them.