Microsoft bumps Xbox 360 Arcade price

Microsoft has told retailers that it intends to increase the price of its Arcade Xbox 360 console and associated accessories, according to reports.

Coming into effect on September 1, the machine's retail price will rise to £159.99 from its current cost of £129.99. The firm also said that the five Xbox Live Arcade games previously bundled with the console will no longer be included.

The price of certain 360 accessories, including joypads and headsets, will also be increased by between £1 and £2 per item.

ShopTo manager Igor Cipolletta confirmed the price rises to Eurogamer, after receiving a message detailing the new arrangements directly from the US software firm.

An independent retail source also told the gaming website that the increases were being motivated by the current unfavourable exchange rate between the pound and the Euro.

According to MCV, Microsoft plans to phase out its Xbox 360 Pro console and place more emphasis on the 120GB Xbox 360 Elite, which will get a £60 price drop in the process. However, this has not yet been confirmed by the console platform holder.