Xbox One now costs the same as Xbox 360 on Microsoft's Store

Microsoft lowers console to £199 - and gives away a free gift card.

Xbox One consoles have been reduced to £199.99 on Microsoft's Store, making them the same price as the 10-year old Xbox 360.

Both consoles are currently selling for £199.99 on Microsoft's UK Store, with the Xbox One deal offering a 500GB console with a copy of FIFA 16 and a £10 gift card for less than £200.

The Xbox 360, meanwhile, which launched in November 2005, comes with a 500GB hard drive and a copy of Forza Horizon 2.

The Xbox One discount follows the announcement of the Xbox One S, a new, slimmer version of the console arriving in August, and Project Scorpio, a more powerful Xbox due to arrive late next year.

Xbox One S will debut with a 2TB hard drive for £349.99, with cheaper 500GB and 1TB models set to follow later. A price for Scorpio has yet to be revealed.

Xbox One originally launched in November 2013 for £429.99.

Source: microsoftstore.com