Xbox 360 price dropped in Europe

Reuters

Microsoft cut the prices of its Xbox 360 videogame console in Europe by up to 28 per cent on Monday to try to spur sales in a key battleground in the fast-growing industry.

The decrease results in cuts of 18 per cent to 28 per cent across the three Xbox 360 models, bringing the cheapest Arcade version to £159.99 from £199.99 and the high-end Elite to £259.99, down from £299.99.

"Xbox 360 is now mass market in Europe," Chris Lewis, vice president of Microsoft's interactive entertainment business in Europe, said in a statement.

The reductions come as Sony's PlayStation 3 appears set to capitalise on the company's recent victory in the high-definition DVD battle and on a slew of highly-anticipated new games hitting the market this year.

"The PS3 has gained some momentum recently," Kaufman Brothers analyst Todd Mitchell said, "and I think as you go into this summer before the fall, Microsoft has got to do what they can to shore up sales."

This was the second price cut for the Xbox in Europe in less than a year. Last August, Microsoft shaved 7 per cent off the European price of its low-end model and 13 per cent off the main Premium model.

"The tide is kind of turning against the Xbox 360, so Microsoft has to be as aggressive as possible," Mitchell said.

The PlayStation brand has long dominated the European console market, although the PS3 has struggled to win fans due to its high price and lack of must-have games.

Last October, in an effort to kick-start sales, Sony introduced a cheaper PS3 model in Europe for £300 and cut prices on a high-end version.

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