Unlike the Nintendo Wii, which will become harder to find as Christmas approaches, it's unlikely that the Xbox 360 will sell out in December.

The console is proving popular in the UK. "We've sold more than double PS3's volume since the price drop in September," Microsoft's Interactive Entertainment boss Chris Lewis told MCV.

Price cuts ahoy!

While the recent NXE software update has given the three year-old Xbox 360 a fresh lick of paint, it's Microsoft's aggressive price slashing that has been crucial in boosting the console's appeal. The price of the entry-level Arcade model has been trimmed to £129.99 in the UK , making it the cheapest of the three consoles. It's an impressive £50 less than the Nintendo Wii, and £170 less than the 80GB PS3 pack.

September's price drops also saw the introduction of a 60GB Xbox 360 Pro for £169.99 (£10 cheaper than the Wii). While the top-of-the-range 120GB model, the Xbox 360 Elite, comes with a RRP of £229.99. The question is: can you get a better deal this December?

Even better prices, free games

Most people look to Amazon for easy Christmas shopping, but the web giant hasn't got the best console deals. Current offers slice £5 off the price of an Xbox 360 Pro or Arcade model and £10 off the RRP of the Xbox 360 Elite. The new 2.5 per cent drop in VAT should trim off another couple of quid. All three models are in stock at the time of writing.

Play.com offers the Elite for £209.99 and the Pro for £164.99. A range of 'Xbox 360 + game' bundle deals jack the price up accordingly. Get Banjo Kazooie: Nuts and Bolts free if you buy an Arcade bundle for £129.99. Or, if you buy a 60GB Pro bundle with PES 2009 and GTA IV (£199.99), you're basically getting one of the games for free.

It's easy to be tempted by a deal that packages together an Xbox 360 Pro with PES 2009, Lego Indiana Jones, Kung Fu Panda and an extra wireless controller for £199.99. Although many gamers would argue that the £189.99 deal on Play.com for an Xbox 360 Pro with PES 2009 and Gears of War 2 is a better overall prospect.

Fable II or Fallout 3?

Other retailers are also offering the Xbox 360 with free or half-price games. Game and GameStation are both giving Mirror's Edge away for free with a new console, while PES 2009, Fable II and Fallout 3 can all be picked up with an Xbox 360 if you're prepared to pay an extra £20.

Dixons, meanwhile, is selling the PES 2009 Xbox Arcade bundle for £127.22. The standalone console prices here are also a good deal – with new VAT cuts in place, the Arcade is £12 cheaper than the RRP at £117.42; as is the 60GB Pro version (£156.57) and the Elite (£215.29). The best deal here, however, combines an Xbox 360 Pro with Gears of War 2 and Fable II. At £209, you're getting one of these highly-rated games for nothing.

Specialists have the best deals

Margins are obviously tight on the Xbox 360 and there are no stunning deals to be had from the big supermarkets such as Tesco and Asda. Argos also doesn't shave more than a few pennies off its in-store or online prices. We're unlikely to see more than a £10-£15 reduction on the Xbox 360 consoles themselves. The best deals typically involve specialist retailers throwing in free or cheap games (or an extra controller) to sweeten packages.

With this mind, keep an eye out for console deals that include the best Xbox 360 games. We're talking Gears of War 2, Fallout 3, Rock Band 2, Fable II, Dead Space, Left 4 Dead and FIFA Soccer 09. And no, not Kung Fu Panda.

Also read: The best Nintendo Wii deals for Christmas