Microsoft will raise the price of the Xbox 360 in the UK in order to “counteract the poor pound-to-Euro currency exchange rate.” UK gamers will have to pay £159.99 ($260) for the Arcade model, up from £129.99 ($211).

On top of that, the five Xbox Live Arcade games won’t be included in the bundle any more.

Now, why Microsoft use this as an opportunity to throw in a small-ish hard drive, assuming that the Pro model is, indeed, phased out, leaving only the Arcade and Elite? That sure would be nice, but there’s no way to tell if that’s true or not.

Flickr