Fry's Electronics on Wednesday offered customers in Southern California the Xbox 360 premium edition console and a copy of Namco's Ridge Racer 6 for $399.99.
The console and game sold seperately retails for $439.98.
The sale is an indication that retailers will likely offer attractive Xbox 360 bundles that may include games and accessories at a discounted price into the holiday season.
The 360 will compete against Sony's Playstation 3 and Wii from Nintendo in the fourth quarter. It will fall in the mid-range category among the new consoles at $299 and $399.
Publishers like EA have discounted Xbox 360 titles to $39.99, while 2K's NHL 2K6 has sold for $19.99.
The Xbox 360 has seen success mostly in U.S. and Europe. It has failed to attract consumers in Japan on low software offerings for the market.
Microsoft in late July announced that the Xbox 360 has shipped 5M units worldwide. It aims to ship 15M by June 2007.