It's a given that when products are launched they sell for more than they end up selling months or years down the line. Pricing has to be cut as the device gets cheaper to produce and interest wanes.
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Microsoft seems to have forgotten how things work and has announced a price increase on the Xbox 360 Arcade in the UK. The machine is being increased from £129.99 to £159.99 according to leaked reports.
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The other bad news is that if reports are accurate, the console gets more expensive, and the five Xbox Live download games that have been coming with the machine are being cut from the offering. Why a price increase? Perhaps it is getting a hard drive, only time will tell.