They have matched the price. $420 includes local taxes. Essesntially, if they weren't required to include the taxes in the price, the system would be price matched with the US price of the Xbox 360 Premium. Assuming this price drop affects the American market as well, the system is likely to be $399.99+Tax. If that is the case, there would be very few people who could really argue in favor of buying the 360. You would be getting the same essential features plus HDMI, Blu-Ray, and more horsepower for the same price. Not even Slashdot can spin this as a negative announcement.