Rumour: 360 Arcade price going *up* ???

[Slimebeast]

So how is MS gonna convince the Sony loving Europeans to choose a €199 X360 Arcade without a HDD, over a €299 PS3 Slim with a large HDD and Blu-ray?

Or maybe this is only slight price adjustments cause of  the weak Pound and weak Canadian Dollar (like Activision and Modern Warfare 2)?