Despite and wielding a heavy axe on the prices of their remain confident that the still represents great value at its current price.

Even with the now retailing around 199 GBP for the 160GB model the 360 still remains the cheapest of the HD home consoles with the 250GB coming in around the 169 GBP mark.

Microsoft's Chris Lewis said: "We think we offer great value now. We have better service provision than anybody. We attach more effectively than anybody. I think Xbox Live's enviable. What weve achieved with has given us growth that I think others would aspire to at this point in the lifecycle. We're happy with our position. While we're not complacent about the competition, I wouldnt trade places."

Microsoft also has some two 320GB special editions out this year, one for 3 which comes with two special edition controllers and a copy of the game due when Gears 3 launches in September and a machine with a white Kinect sensor and a copy of Kinect Star Wars which is due for Christmas.

Thanks MCV.

By Ewan Aiton