Microsoft announced a massive price cut of its Xbox 360 console in Europe.
On March 14 the price of the entry-level Xbox 360 Arcade will drop from 279EUR to 199EUR, making the console about 50EUR cheaper than the Nintendo Wii.
The Xbox 360 Elite which features a 120GB HDD will drop from 449EUR to 369EUR and the Xbox 360 Pro which has a 20GB HDD will drop to 269EUR. With these big price cuts Microsoft wants to make its Xbox 360 console more attractive than Nintendo's Wii and Sony's PSP3 console.
It's uncertain whether Microsoft is planning to cut the Xbox 360 prices in the US too. Microsoft was selling its Xbox 360 consoles at a big premium in Europe and even after the price cuts the consoles are still more expensive than in the US with today's EUR/USD currency exchange rate.