Xbox Price Drops 40 Percent in Europe

In an effort to boost lagging sales of the Xbox in Europe, Microsoft Thursday reduced the console's price to $266 USD in mainland Europe and $288 USD in Britain. Xbox went on sale in Europe last month, but its initial $434 price tag kept sales far below initial projections. Microsoft now expects to sell up to 4 million consoles this year, instead of the 6 million it had previously forecasted.

"We are making a clear statement today -- we mean business in Europe," said Sandy Duncan, Vice President of Xbox Europe in a statement. "The phenomenally positive response to Xbox through reviews, awards and game sales has demonstrated that consumers love Xbox. We want to make sure that price is not the obstacle to the Xbox experience."

Early adopters of Xbox who paid the original price will be rewarded with a special thank-you package. Details will be posted on xbox.com next week, according to Microsoft.

Xbox will now go head to head with Sony's Playstation 2, which has enjoyed immense success since its launch in 2000. "The most powerful video game system on earth, and the only one with a built-in hard drive and broadband adapter, is now without a doubt the best value available. The playing field in Europe has been leveled, making it even easier for customers to enjoy the power of Xbox," said Duncan.