That takes it down to EUR 199, while the Premium console package will sell for EUR 299 - down from EUR 339.
The report made no mention of the Xbox 360 Elite, which is currently on sale for around EUR 449.
Microsoft has yet to confirm the price cut officially.
Last week the retail community suggested a price cut was due, with some reports indicating all models would drop by EUR 50 on 14th March.
Lowering the Xbox 360 Arcade price to EUR 199 would make it the cheapest console in the market: EUR 50 below that of Nintendo's Wii.
Microsoft has yet to respond to requests for comment.
Update: Still no official word from Microsoft, but the Xbox 360 Arcade package is now going for GBP 149.99 on Amazon.co.uk - while the Premium is GBP 189.99 and the Elite GBP 249.99.
Update #2: Bizarrely, Amazon has now returned the consoles to their original prices - GBP 189.99 for Arcade, GBP 249.99 for Premium and GBP 279.99 for Elite. The retailer has yet to respond to requests for comment.
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