Microsoft is announcing a price drop on the Xbox starting tomorrow, March 30th. The price will go from $179 to $149. I had previously seen notes that this was coming, but that it was going to be a Wal-Mart only deal. This article doesn't mention Wal-Mart specifically, so it looks like it's going down in price everywhere.
I had thought to buy an Xbox a couple weeks ago. I'm glad I waited.