Microsoft have this morning confirmed that the retail price of Xbox in Europe has been cut to £129.99 - some £170 less than the price which it launched at just over 12 months ago.
The price cut goes in to effect today, with the machine priced at 299.99 euros/£129.99 - the same as Nintendo's gamecube, which up until now was the cheapest console on the market.
"Our success in Europe and increased market share means we can take action to remain competitive and allow even more gamers to experience Xbox" said Microsoft's Peter Moore.
However todays new price isn't the lowest the Xbox has seen - a number of retailers such as Amazon.co.uk have been selling the machine for less than £129.99 for some time now, and previous bundles have also seen the equivalent price of the hardware slashed to much lower prices.
The focus now moves to Sony for a price cut of their ageing but ever popular PlayStation 2, and of Nintendo's Gamecube - which is reduced could cause a knock on effect to Nintendo's recently launched Game Boy Advance SP which may also have to see a price cut so as not to appear almost as expensive as a year old console.
Related articles: Xbox £129 by Friday?
Xbox slashed to under £30 in new bundle
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