Wii versus XBox 360
PC World is reporting that Microsoft has announced a newer, cheaper XBox 360 called the "Arcade". Its actually a pretty good deal for a video game console with a wireless controller, an HMDI connector, and 256MB of storage for game content.
It can also connect to XBox Live, where you can try out new games and download TV and movie content.
For $279, its the best bet for an XBox in my humble opinion. But being the cheap-o that I am, I'd still opt for the even lower priced Wii, at $249.