Following similar news in the US, Microsoft has announced a complete reshuffle of its Xbox 360 hardware lineup in the UK. The most welcome change is the Xbox 360 Elite price cut to £199.99, which is a reduction of £30 from its previous price point of £229.99. The Elite is the flagship model in the console lineup, as it's bundled with a 120GB hard drive. The price cut will take effect from tomorrow, August 28--just in time for the Bank Holiday weekend and four days before the launch of the new PS3 Slim console.

　　While the Xbox 360 Elite sees a price drop, the Xbox 360 Arcade will jump in price by £20, from £139.99 to £159.99. This is in stark contrast to the US, where the Arcade model has remained at its previous price point of $199.99.

　　Questioned about the matter, Microsoft responded: "We have not made upward adjustments to the trade price of consoles before. A modest increase on the trade price of Xbox 360 Arcade consoles [in Europe, the Middle East, and Africa] allows us to offset exchange rate fluctuations and changes in local market conditions while still offering the most affordable console on the market."

　　The Xbox 360 Pro bundle, which included a 60GB hard drive, will now be discontinued, leaving just the Elite and Arcade models going forward.