Rumours of a UK price cut have now been confirmed by Microsoft, from this Friday the Xbox 360 will have an estimated retail price of £129.99 for the Arcade console, £169.99 for the standard model with a 60GB hard drive and £229.99 for the 120GB Elite version.

The new ERPs are part of Microsoft’s ongoing strategy to open up the ultimate in high-definition gaming and entertainment to an even wider audience, with something for everyone. A major part of this strategy is a new Xbox LIVE online experience coming to Europe this autumn that will reinvent home entertainment from the inside out, with a bold new look and feel that is fun, social and simple to use. It’s the first time in history that a mass market consumer electronics device has been reinvented through free software, changing the way we play games, watch movies, and even become contestants in game shows. Along with the new Xbox experience, the Xbox 360 platform is offering a stunning games portfolio for all ages and interests this Christmas, with new titles for music lovers, family-friendly games, and exciting blockbuster titles for the committed gamer.

"Xbox 360 has now sold over 20 million consoles worldwide and due to its unprecedented success, we are now able to pass on the rewards of that success to the consumer with a new retail pricing from £129.99", said Neil Thompson, Senior Regional Director, Microsoft UK. "With more games, more entertainment with Xbox LIVE and now even more value, we are looking forward to welcoming more customers into the leading Next Generation console, Xbox 360."