Microsoft dropped a bomb this Labor Day weekend. They have announced that the Xbox 360 will be the first current-gen console to break the $200 price barrier in any territory by dropping the price of the base model 360 to 19,800 yen, or the equivalent of a $182 price point. The new super-low price is for the Arcade model of the system, but the Premium and Elite versions will also be getting slashed prices to follow suit.

The Xbox 360 Arcade model was previously 27,800 yen ($257), and the newly announced pricing will make it the cheapest of the current gen system in Japan, beating out the Wii by 5,200 yen, and the base-model PS3 by a hefty 20,000 yen. That’s a pretty big advantage for a system that seems like it’s just starting to get some kind of a foothold in the country. It will certainly be interesting to see how this affects sales in the coming months, but one thing’s for sure; the gloves are officially off in the land of the rising sun.