Thinking of buying a tablet but didn’t want to break the bank too much? Motorola has decided to take a chunk off the price tag of the Xoom in time for the holiday season.

Released earlier in the year, the Xoom was one of the first tablets released in Australia to support Google’s Android Honeycomb OS.

Now sitting at just a touch under $400, the Xoom features a dual-core 1GHz processor, 1GB RAM, Google Android Honeycomb 3.1 (upgradeable to the latest version – 3.2), and a 10.1 inch widescreen HD display.

In fact, this Xoom is very similar to the one we reviewed earlier in the year, although it only features WiFi, forcing you to connect to a wireless hotspot – or a mobile phone running a wireless hotspot – if you want to surf the web, check your email, or download apps.

A price drop on the Xoom isn’t altogether unexpected. While gadgets can receive a price cut before the holiday season, we’ve heard rumblings that Motorola is also preparing a second-generation Xoom for release shortly.