Microsoft Drops Xbox 360 Price in Europe

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Microsoft has announced price drops for its Xbox 360 systems in Europe, ratcheting up competition with Nintendo and Sony and, of course, engendering all sorts of speculation about when similar price cuts might reach the North American market.

Microsoft’s new European prices for Xbox 360 systems:

Xbox 360 Euro (€) UK Pounds (£)
Xbox 360 Arcade €199.99 £159.99
Xbox 360 (20 GB) €269.99 £199.99
Xbox 360 Elite (120 GB) €369.99 £259.99

"Xbox 360 is now mass market in Europe," said Microsoft’s VP of interactive entertainment in Europe Chris Lewis, in a statement. "History shows that €199/£159 is the price point where a console’s audience begins to expand, and with these new ERPs in place we’re ready to bring more consumers into the Xbox 360 world."

The price changes mean the Xbox 360 Arcade edition is about half the price of the 40 GB PlayStation 3 in Europe, a factor that may influence some buying decisions. Microsoft claims the Xbox 360 is the dominant gaming console in the Europe/Middle East/Africa market, accounting for 42 percent of life-to-date revenue since it was launched over two years ago (which is a year longer than either the Wii or PS3). Microsoft also says the Xbox 360 has the highest "attach rate" of any game console, with an average of over seven games sold for every console.

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