Discounted Xbox 360s outsell new model

Microsoft's redesigned Xbox 360 accounted for just 40 per cent of the 451,700 Xbox 360s sold in the US in June, Wedbush Morgan analyst Michael Pachter has said.

35 per cent were of the cheaper Arcade model, discounted by Microsoft to clear. The rest of the sales were made up of Pro and Elite units, also reduced in price.

Sales of the Xbox 360 rose by a whopping 88 per cent year-on-year in the US last month.

The new 360 model, which includes built in Wi-Fi and a 250GB hard drive, went on sale in the UK last week.

Specialist retailer GAME said it saw "amazing demand" for the console, which costs £200. It opened 400 stores at midnight Thursday.