360 price drops in Europe

Let the price wars commence--Microsoft has thrown down the gauntlet and cut the price of all Xbox 360 SKUs in Europe.

The Arcade pack will have a recommended retail price of £159.99 (down from £199.99), the Premium pack will be £199.99 (down from £259.99), and the Elite pack will be £259.99 (down from £299.99).

The price drops are effective from this Friday, March 14, and notably the new recommended retail price for the Arcade version brings it in cheaper than the Wii--which at £179.99 has been the most budget-conscious next-generation console option since its launch in December 2006.

Microsoft's Interactive Entertainment Business Europe's VP, Chris Lewis, commented, "History shows that £159.99 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 company also claimed that the 360 is now the number one next-gen console in Europe, the Middle East, and Africa, where it holds 42 percent of the market "in terms of life-to-date revenue." Microsoft also boasted of the high attach rate for the 360, with seven games sold per console, compared to 3.5 for the Wii and 3.8 for the PlayStation 3.