MS drops price of Xbox 360 Core pack down to £199

UK retail has confirmed to GamesIndustry.biz that Microsoft has officially dropped the RRP of the Xbox 360 Core pack to GBP 199, effective from today.

The readjustment from the previous RRP of GBP 209 is the first formal hardware price cut since the system launched across Europe last December.

Many UK vendors had already started selling the lower-spec version of the next-gen system, which lacks a hard drive, for the reduced price - taking a hit on their own margins. The premium system still has an RRP of GBP 279.

Microsoft UK refused to confirm the cut when questioned earlier this week, commenting: "Retail price is set by our retail partners. Retailers are already selling Xbox 360 Core System from £199.99, which we believe is outstanding value to consumers."

However, GI.biz has received confirmation of the reduction today from retailers in the independent, supermarket and High Street entertainment sectors.

“The Core version has dropped by £10 today - they've issued it directly so it's not been driven by retail,” a spokesperson for a leading entertainment retailer explained.

Official UK distributor Gem declined to comment and Microsoft remained unavailable at press time.