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It seems to be Microsoft price-cut season right now. Not only has Vista just seen its prices dropped, but now rumour has it that the Xbox 360 may be about to see a non-too-stingy reduction in price come the 14th of March.

Supposedly there will be an across the board lowering of around €50 throughout Europe. That would translate to about £38 over here, which putting our realist hats on would have us expect the Arcade SKU to sit at £150-160, pitching it slightly below the current price of Nintendo's Wii.

Given that the Xbox 360 is an indisputably more powerful console than Nintendo's, albeit one that's competing for a different audience, Microsoft should expect to see renewed attraction for its system if it can boast to being the cheapest current generation console on the market. Assuming the Elite console saw the same drop, it would put it around £50 cheaper that Sony's PlayStation 3

Speculation is also rife that a new SKU might be introduced, although what Microsoft can change other than bundles and possibly hard drive capacities in unclear. No-one is confirming these drops officially at the moment, so it's we'll just have to wait and see if Microsoft is obliging.

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