Microsoft is to cut the price of the entry-level Xbox 360 Arcade in Australia as of July 2nd. But this might not be the global price-cut that the Interweb has been expecting. If you're in Australia you will be able to pop into Hardly Normal or EB or JB Hifi and get AU$50 (£25) off the Arcade model bringing it down to AU$349 (£174.50). This makes it less expensive than Nintendo's Wii.

The Xbox 360 Pro has dropped AU$80 to AU$499. The Elite falls by AU$80 to AU$649.

According to Asher Moses of the The Sydney Morning Herald, "Jeremy Hinton, Xbox group product marketing manager, said the company was passing on savings from recent currency fluctuations and lower manufacturing costs."

GameSpot in Australia asked Hinton if the price cuts reflected competition from the Wii. Hinton responded, "No, absolutely not. This is a strategy we've had for some time."

The SMH's Moses, however, spoke with EBGame's merchandising director Shane Stockwell who countered Hinton's assertion with, "Wii is so far in front, then PlayStation 3 is a clear second with Xbox coming in at third."

As we've already pointed out, the world and its husband awaits an official Microsoft announcement of Xbox 360 price cuts globally - this is expected by crystal ball gazers to be due at this year's E3.

^{Sources:
Sydney Morning Herald
GameSpot AU}