Microsoft are said to be slashing the price of the Xbox console in Europe, from 479 Euros, to just 299 Euros, bringing it directly inline with Sony's PlayStation 2.

According to reports on a number of German websites, including the English language Handelsblatt.com, the company have confirmed that the price cut for the console, which only launched on March 14th in Europe, will be slashed by nearly 200 Euros from April 26th, meaning that it will retail for just under 200 in the UK.

Hans Stettmeier of Microsoft Germany said "People are interested, but the main complaint is the price" - a sentiment echoed by a large number of gamers, and industry analysts, who have so far dismissed the Xbox console.

To provide a form of compensation for gamers who purchased the Xbox at full price, Microsoft are said to be planning to offer gamers 2 Xbox titles of their choice, along with a free controller.

As soon as we hear any more, or get confirmation from Microsoft's UK representatives, we'll let you know.

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