Microsoft Readying Xbox 360 Arcade Price Hike News

Fresh off rumours that Microsoft is preparing to drop the price of its Xbox 360 Elite and phase out the Pro model, reports this morning are now suggesting that the company will increase the RRP of its Xbox 360 Arcade SKU.

The Arcade model, which is the cheapest of Microsoft's three Xbox 360 SKUs at £129.99, will receive a £30 price hike at retail in the UK that will come into effect on September 1st according to industry sources.

Igor Cipolletta, the boss of online retailer ShopTo, told Eurogamer that he'd received confirmation of the price hike from Microsoft this morning, while a second independent source from UK retail has reportedly confirmed the validity of Cipoletta's initial remarks.

On top of this increase to £159.99, there are also suggestions that Microsoft will drop the five bundled XBLA games that have previously been offered with purchase of the Arcade SKU.

It seems a poor exchange rate between the UK pound and the euro is to blame for Microsoft's pricing policy change, which also means that the price of Xbox 360 accessories will be bumped up by a couple of pounds.

Microsoft's e-mail to UK retailers apparently made no mention of the Xbox 360 Pro, which backs up rumours of the model's imminent demise. An official announcement from Microsoft on this will likely arrive in the next week, so sit tight if you were thinking of buying the Xbox 360 Pro and have £129.99 at the ready if you're considering the Arcade model.