Microsoft has issued official notice to UK retail to increase the price of the Xbox 360 Arcade bundle in the UK.

The price is being hiked from the current £129.99 up to £159.99, according to British retailer contacts.

Trade mag MCV has reported that they have spoken to one technology retailer "who confirmed that Microsoft has told retail to expect the Xbox 360 Arcade bundle to increase in price."

No free games

The five XBLA games previously part of the bundle will no longer be included, according to the latest listing. Microsoft is also set to marginally increase the cost of Xbox 360 peripherals.

"However, a closer inspection of the documentation sent to retailers seems to suggest that the Xbox 360 Arcade listing is a placeholder for an as-of-yet unspecified SKU," adds MCV.

"Whether that's an enhanced Arcade SKU or a reduced RRP Elite is yet to be seen."

Microsoft's documentation carries no mention of the Premium Xbox 360 bundle, strengthening rumours that that particular model is set to be discontinued in the near future.

TechRadar has contacted Microsoft UK for further comment.

Expect lots more Xbox news, features and opinion throughout the week from GamesCon over in Cologne.

Via MCV and GamesIndustry.biz