Xbox marketing product director Aaron Greenberg told MTV's Multiplayer blog that the company believes its price cuts hit on two fronts. Greenberg thinks a $199 price point can pick up gamers who already own a Wii. He also believes it can pick up PS2 owners who haven't stepped up to the next generation.

"Tens of millions of those guys haven't upgraded," Greenberg said. "A lot of those guys didn't pay more than $200 for their system and now we're speaking to those guys as well."

The article notes that for all the success of the Wii, it hasn't reached the popularity the PS2 still enjoys. It will be interesting to see which console camp a majority of the "upgraders" land in.