The big news in the console world this week is that Microsoft has dropped the retail price of the Xbox 360.

The entry level Arcade system will now be priced at a relatively affordable £159.99, with the standard console (which comes with a 20GB hard disk and a wireless controller) dipping in under the two hundred pound mark at £199.99. The Xbox 360 Elite, the one with the bigger 120GB drive, is slightly more affordable too at £259.99. Basically, it's a £40 drop across the board, except for the standard system which has been reduced by an even thriftier £50.

Microsoft hopes that the cuts will further stimulate sales by making the console a more mass market proposition. The X360 is already the number one selling next generation console in the EMEA (Europe, Middle East and Africa) territory, owning "42% of the market in terms of life-to-date revenue", according to the company.

So if you've held out on buying yourself an X360 thus far, now might be the time to go for it. Although there's no sign of the games getting any cheaper!

Tags: microsoft xbox 360 xbox price kinect video game games console platforms