Microsoft Corporation has slashed the price of the Xbox 360 video game console in Europe by 20 per cent in a bid to attract more gamers to its platform, in a bid to boost its markets as it fights a pitched battle with Sony and Nintendo for dominance of the video game console market.
The price reductions come into effect later this week.
Microsoft did not say whether it plans to cut prices in the US, as well.
The Xbox 360 comes in three different versions, the "Arcade" console, the "Premium" console, and the "Elite" console, each having its own set of included accessories and features.
With the price cut, the entry-level Xbox 360 Arcade now costs £159.99 rather than £199.99, which is less than Nintendo's hugely popular Wii console, which is priced around £179.
The cost of the Xbox 360 Premium, which has a 20GB hard drive, will drop from £249.99 to £199.99, and the Xbox 360 Elite, with a 120GB hard drive, will cost £259.99 instead of £299.99.
"Xbox 360 is now mass market in Europe," said Chris Lewis, the vice president of Microsoft's interactive entertainment business in Europe, in a statement.
The console's gaming portfolio, he added, now offers "the kind of mainstream entertainment experiences that secure wider appeal for Xbox 360."
The price cuts come just weeks before the release of Grand Theft Auto IV, the latest version of the hugely popular Grand Theft Auto computer game series. The game will be released simultaneously on both Sony's PlayStation 3 and Microsoft's Xbox 360 platforms.