Microsoft Relents, Lowers Xbox Prices In Europe

Just six weeks after its launch, Microsoft announced that it will significantly reduce the price of the Xbox in Europe.
On the continent, the Xbox price will drop from 479 euros to 299, and in Britain it will decrease from 300 to 199 pounds -- putting the Xbox right in line with current PS2 pricing. The new prices will take effect on April 26. Microsoft had been under increasing pressure from publishers and analysts to help spur lagging Xbox sales overseas, but the company had been silent on the issue until today. It's the earliest console price cut after a launch in recent memory, and will significantly increase the amount of money Microsoft will lose on each console while it grows the Xbox user base. There was no indication from Microsoft whether the company would cut Xbox prices in Japan as well, where sales have also been slow. For consumers who bought an Xbox in Europe at the launch price, Microsoft said it will give out a "thank-you package," the contents of which will be announced on the Xbox web site next week.

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