With rumors of the PS3 Slim making its first appearance soon and the recent axing of the Xbox 360 Pro, it seems now is the time for console manufacturers to lower the prices on their hardware.  It makes sense; we’re far enough into this console cycle to lower those price points a bit and draw in those who’ve waited patiently for a more affordable gaming experience.  Besides, its not like they’d ever do a price increase, right?  Oh.

Eurogamer is reporting that they have spoken with online game retailer ShopTo.net and another "corroborating independent retail chain source,” who have stated that Microsoft sent them an email giving a new recommended price for the Xbox 360 Arcade model;  £160 ($260).  The Arcade model, previously listed at £130 ($210), was the only model listed with a price change; the Elite will stay the same price, and the Pro model, which is essentially on its way out, was not mentioned, but first party accessories and peripherals will all see a £1-2 price increase as well.

Apparently, this is all a result of a poor exchange rate between the Pound and the Euro, but instituting a price increase at this point in the game seems ridiculous.  With the holiday season coming up, many gift-buyers are likely to make their purchases without even noticing the hike, but knowledgeable gamers in the UK may be rightfully peeved at the move.  The 360 has been selling well in Europe recently, but a backwards strategy like this can’t help their sales numbers.