Games industry site MCV is claiming to "have it on very good authority" that Microsoft is planning an Xbox 360 price cut later this month. And Pocket-lint's own industry sources have confirmed the same thing.

One retail source told us there will be a drop to coincide with the release of GTA IV, due out in April, so that consumers "plump" for the 360 version of the game.

It's thought the lowering of the RRP is so that specifically the lower-specced Xbox 360 "Arcade" model will better compete with Nintendo's Wii on price.

While other sources suggest that all 360s across the range will get around 50 euros slashed from their price point on 14th March, more conservative estimates just see the Arcade model's pricing reduced to around £170 from £200 making it £10 cheaper than the Wii.

A trade source is quoted in the article as saying: "A few publishers have confirmed the news to us, and we’re aware of some price movement is coming. The major chain retailers have all been told".

We are waiting to hear from Xbox 360's PR team in the UK, although don't get your hopes up for much more than a "no comment" response...

UPDATE: We've heard back from the PR peeps with the response: "Microsoft does not comment on rumour or speculation".