These price increases are probably due the poor pound-to-euro currency exchange rate, with Xbox 360 accessories also being effected by going up one or two pounds.
ShopTo and an independent retail chain confirmed the reports, saying that an email was sent to it this morning with details on the increased prices.
Rumours suggest that Microsoft are planning to cut the Premium Xbox 360 bundle and replace it with the Elite bundles, in what would seem as a move to improve the amount of HDD space that Xbox 360 owners have. The email adds more fuel to this rumour as it only mentions the Arcade and Elite bundles, no Premium Xbox 360 was mentioned.
We've contacted Microsoft for comment.