Xbox 360 price cut 'later this month'

Microsoft will cut the price of its Xbox 360 Arcade machine later this month, according to a report by trade paper MCV.

The US computer giant has long said it is keen to capture the family market and the predicted Xbox 360 price drop, which will place the console on par with the Nintendo Wii, is seen as an aggressive move to achieve its aims.

The trade paper report reads: "MCV has it on very good authority that Microsoft is planning an Xbox 360 price cut later this month. That would mean a dip from Arcade’s current price of £199.99 to something closer to £170."

The report also adds that "A few publishers have confirmed the news to us, and we’re aware that some price movement is coming. The major chain retailers have all been told”.

It is currently unknown if Microsoft will cut the price of the Xbox 360 Premium and Elite, though the firm did drop the price of more than one model last August.