Well this morning, as what could have been seen as jumping the gun, online retailer, Amazon.co.uk, has dropped the price on all three SKU’s (Arcade, Premium and Elite) by £40.00. This would make the Arcade SKU £159.00, the Premium SKU £199.00 and the Elite SKU £259.00. In addition, Amazon has also done up a special offer knocking off a further £10.00 on all three SKU’s.

To put this in a different perspective, the Arcade is now £30.00 cheaper than the Nintendo Wii, while the Premium now only £10 more. This puts Microsoft at huge advantage over Sony and Nintendo, as this may entice Wii owner’s who may pick up another console to go with the Xbox 360 rather than Sony’s Playstation 3 that retails at £299.00. This can also be seen as Microsoft preparing for the launch of highly anticipated Grand Theft Auto 4, which will release at the end of April. Microsoft is hoping that with the exclusive downloadable content and the cheaper console, consumers will choose to pick up a Xbox 360 to go with their GTA4 purchase.

Speaking to TechRadar.com, Sony and Nintendo have each responded to Microsoft’s price cut. TechRadar.com asked if Nintendo will soon cut the price of their Nintendo Wii, and they replied with:

“They are going for a different market with the price cuts… and once you start slashing the price of something, there is really only one way to go.”

Sony also stated that there are no plans to cut the cost of the PS3 "in the near future."

They may be saying that to us now, but rest assured that they will be keeping a very close eye to see what impact this will have on the Next-Gen console race, and if it is indeed a big impact, expect a similar response from them.

Microsoft has yet to confirm this, but they are expected to make an official announcement tomorrow. There is also no word that this corresponds to all of Europe and America but stay tuned to thegamereviews.com for more announcements as we hear it.

UPDATE: As we reported in our article, it seems that Amazon has indeed jumped the gun and has since put the prices back up on all three SKU’s. Microsoft must be fuming at the thought of Amazon breaking the news without an official announcement. Check back for more updates regarding the Xbox 360 price cut saga.

UPDATE 2: Microsoft has just confirmed the price drop for all of Europe. Chris Lewis, Vice President, Microsoft Interactive Entertainment Business Europe had this to say:

“Xbox 360 is now mass market in Europe, We have reached and surpassed several key milestones that form part of our long term strategic plan to achieve critical mass in Europe; and our portfolio now offers the kind of mainstream entertainment experiences that secure wider appeal for Xbox 360. These factors allow us to execute on our strategy to widen the market for Xbox 360, as planned.”

He goes on to say;

“We continue to offer intense, immersive gaming experiences for gamers - but now we’re priced in a way that will allow new consumers to find out for themselves why Xbox 360 is the ultimate in high-definition entertainment, History shows that £159.99 is the price point where a console’s audience begins to expand, and with these new ERPs in place we’re ready to bring more consumers into the Xbox 360 world"

The premium model had the biggest cut with £50.00 off, making it £199.99 with the Arcade and Elite both having £40.00 off, making them £159.99 and £249.99 respectively.

Well there you go folks, with the vast array of games available, the excellent online service, and now with a affordable price for everyone maybe it’s time to “Jump In.”

Source: http://www.techradar.com/news/gaming/xbox-360-less-than-150-259782