We always thought the Xoom was overpriced, and it looks like Motorola finally listened.

Motorola cut $100 off the price tag, bringing the Wi-Fi only Xoom down to $499. That's the same price as the cheapest iPad.

The announcement came via this tweet from Motorola, but makes no mention of discounts on the 3G/4G version of the tablet.

We still don't know how many Xooms have been sold since the February launch, but the price cut doesn't sound like a good thing to us.