New UK price-point intended to offer Xbox 360 as the first choice all-in-one super console, starting Friday 19 September.

The Christmas console price war starts here. Microsoft has announced price drops across the whole range of Xbox 360 consoles, starting with the entry-level Xbox 360 Arcade at a new estimated retail price of £129.99. The recently announced Xbox 360 core console, with 60GB hard drive and one wireless controller, becomes ERP £169. Finally the 120GB Xbox 360 Elite, the chic black model, drops to ERP £229.99.

Microsoft explains that the new strategy is to compliment the arrival of its Xbox LIVE online service revamp. We’ve still no official starting date this morning, but everybody who’s online with Xbox 360 this autumn will receive this radical update for free. It features Nintendo Wii style Mii caricatures and links together movies, games and other interactive online features in a more appealing way.

Neil Thompson, Senior Regional Director, Microsoft UK had this to say earlier today: “Xbox 360 has now sold over 20 million consoles worldwide and due to its unprecedented success, we are now able to pass on the rewards of that success to the consumer with a new retail pricing from £129.99. With more games, more entertainment with Xbox LIVE and now even more value, we are looking forward to welcoming more customers into the leading Next Generation console, Xbox 360.”

All eyes on Sony in the coming weeks…