Microsoft has cut the price of its Xbox 360 video game console in Europe.

From 14th March, the 20 gigabyte hard drive model will cost 270 euros, a drop in price of 80 euros.

In the UK, the entry level machine, which does not come with any hard drive, will cost £159.99, £40 less than the current price

The price drops mean that the versions of the console are now cheaper than both of its competitors - the Nintendo Wii and Sony's PlayStation 3 (PS3).

Sony's 40GB console currently retails for £299.99 compared to £259.99 for Microsoft's top level machine - the Xbox 360 Elite, which has a 120GB drive.

The Nintendo Wii currently retails for £180 in the UK.

Microsoft said that the price of the entry level machine had been chosen because historically it was "the price point where a console's audience begins to expand".

The Xbox 360 has been losing ground to both of its competitors recently, despite having launched earlier.

http://news.bbc.co.uk/1/hi/technology/7288024.stm

Er, so why didn't they set this price to start with?

Profiteering?

<roflmao>

I thought they were still making a loss on it... Could be wrong though

They've had to drop the price as they're heading for 3rd place again

Sony and Microsoft are still selling the 360 and PS3 at a loss, though obviously as it becomes cheaper to make over time that starts to change.