EEDAR analyst Jesse Divnich has said that an Xbox 360 price cut or model change is very likely to take place by the forthcoming E3 gaming expo.

Divnich appears certain that Microsoft will either drop prices on the consoles at the event, introduce at least one new version, or combine the two in a single update.

Microsoft cut Xbox 360 pricing in the UK in March, with official "estimated retail prices" now starting from £159.99.

The company said that with an entry-level price of £159.99, Xbox 360 was a "mass market entertainment proposition".

The standard model, now called just "Xbox 360", which includes a 20GB hard drive and one wireless controller, costs £199.99 - a saving of £50.

The Xbox 360 Arcade console, described as "perfect for those wishing to make their first foray into the gaming and entertainment world of Xbox", costs £159.99 - a saving of £40.

The Xbox 360 Elite, which comes with a 120GB hard drive enabling consumers to store content downloaded from Xbox LIVE Marketplace as well as their own music, costs £259.99 - a saving of £40.