Is Microsoft preparing to implement a price cut to the Xbox 360 Arcade? A gaming blog based in Holland is claiming that European Xbox 360 Arcade units will soon be receiving a retail price cut.

According to games.blogo.nl, a reliable source closely associated with Microsoft has revealed that the Xbox 360 Arcade (which recently replaced the base Core unit) will be reduced to €199 Euros, which, while a drop of €50 Euros, would also position the Arcade unit at a lower price than the hugely popular Nintendo Wii.

The (unnamed) source offers that Microsoft’s sudden move to hack a chunk from the price of the Arcade unit comes on the back of Sony (and also EA) outlining that the PlayStation 3 will outperform the Xbox 360 in sales during 2008.

If this latest rumour pans out, prospective Xbox 360 buyers could well see the price reduction come into play as early as February 14, with similar price cuts for the 20GB Premium and 120GB Elite models also expected to arrive in the near future.

A similar Xbox 360 price cut rumour surfaced recently, with online chatter suggesting that Microsoft is looking to implement a price drop at the end of March to entice consumers towards the Xbox 360 during the simultaneous (Xbox 360, PS3) software launch of Grand Theft Auto IV.

Both of these price cut rumours remain just that - rumours - and any corporate reaction from Microsoft will likely arrive by way of its stock standard “no comment.” That being said, an Xbox 360 price point below that of the Wii could prove effective in persuading retailers to opt for processing power and Live gaming over family appeal and innovation.

News-Source: http://gaming.monstersandcritics.com"