Recently, there has been a price drop for Xbox360 (sorta). There are 3 models out there: the Arcade model (no hard drive included, white in colour), Pro model (60gb hard drive included, white in colour), and the Elite model (120gb hard drive included, black in colour). The Arcade sells for $199. Microsoft is trying to phase out the Pro model, so you can expect to find that around $249 or so. The real price cut comes in the form of the Elite model. It went from $399 to $299. I believe there are plenty of deals out there that bundles the system with extra games/controllers/wireless adapters.
I think the Pro and Elite model comes with 1 month free Gold Membership for Xbox Live. You can expect to pay $60+tax for a full year's suscription. As for games, new ones can cost you around $69.99 per title if it's a popular one. Even less popular ones will hover around that price until it's gotten old or no one really wants it.
All three systems only come with one controller. Since you mentioned kids, you probably want to pick up another controller. Wireless ones are around $59.99 or so. I do know some promotional bundles may include another controller.
Do you happen to have a HDTV? If so, you will likely need to buy an HDMI cable to experience the best graphics. Don't buy the ones that Microsoft sells for like $50.00. You can easily order a cable only for like $5-$10. The older Elite bundles come with an HDMI cable, but the new ones do not. Just something to keep in mind.
If you really wanna save money on games, you MIGHT want to look into getting the system modded. That's an entirely different subject though and I could fill you in on it if you wanna pm me. Hope this helps!
