Continuing the global trend for console price cuts, Microsoft today announced the UK would be next in landing a reduced price Xbox 360 range.

The entry level arcade unit will now retail at £129.99 - down from £159.99. This latest reduction retains the Xbox 360 place as the UK’s cheapest current gen console, further openeing its lead compared to the Wii at 179.99, the PlayStation 3 at a whopping £299.99 and cheaper even than the forthcoming PSP 3000 which is currently pegged at around £150. The Premium bundle containing the 60GB hard drive will drop from £199.99 to 1£169.99, while the Elite version will weigh it at £229.99 - previously £269.99. Microsoft states these reduced costs will be in effect from Friday 19th September.

“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.”

The cuts come right at the beginning of the game industry’s big Christmas push, and certainly won’t harm the Xbox 360’s chances considering the lack of new technology available this year. A brutal strategy, but not one UK consumers - who face a looming economic recession - are going to balk at. Hopefully, Microsoft’s bold move will push the competition to stop viewing the UK as a free bank (that’s you, Sony).