Online retailer Play.com has dropped the price of the 20GB Xbox 360 in the UK to GBP 169.99.
Rival store Amazon sells the 20GB console in the UK for GBP 179.99. Although Microsoft announced a price reduction of the 20GB unit in the US last week, there are currently no plans for a similar move in Europe.
A spokesperson for Microsoft has told VG247 that the deal is "nothing to do with us," but some industry watchers are now expecting a price cut to be announced at Game Convention in Leipzig this August, with the possible introduction of a 60GB unit to the market.
Yesterday, Signal Hill analyst Todd Greenwald said that he remained sceptical of Microsoft's pricing strategy, and that the "Xbox 360 needs a real price cut".