Microsoft Cuts Xbox 360 Prices in Europe

In the wake of North America and Japan, Microsoft has decided to announce that the prices of the Xbox 360 line of gaming consoles would also be reduced in Europe in the coming days. In an interesting move, both the Xbox 360 Arcade and the Xbox 360 Premium console bundles will be sold below the price of the Nintendo Wii. The average price cut in Europe is of about 54 dollars.

The Xbox 360 Arcade model, which does not have an internal hard drive, will be sold for 179.99 Euros or 129.99 Pounds, which is about 257 $. The Premium model, which has a 60 GB hard drive, will retail for 239.99 Euros or 169.99 Pounds while the top end Elite model, with its 120 GB storage space, will now cost 299.99 Euros or 229.99 Pounds. You won't be able to get Microsoft's consoles for these prices before Friday, September 19.

Neil Thompson, who is a senior regional director at Microsoft UK, has stated that “Xbox 360 has now sold over 20 million consoles worldwide and due to its unprecedented success, we are now able to pass on the rewards of that success to the consumer with a new retail pricing from £129.99”.

While in both North America and Japan only the Xbox 360 Arcade model was priced below the Nintendo Wii, in Europe, the Premium version of the console is also well positioned to take on the Nintendo made gaming device. Ever since launch, the Xbox 360 has been less appealing in Europe than in the United States and this pricing model might be seen as a tactic designed to boost the European popularity of the Microsoft made product.

Neither the PlayStation 3 from Sony nor the Nintendo Wii are expected to see a price cut in 2008, so Microsoft appears to be confident that the winter shopping season will see a major boost in sales for its gaming consoles. Anecdotal evidence from retailers in the United States, where prices were cut earlier in the month, suggests that there has been a doubling of sales of the Xbox 360.