The estimated retail price (ERP) for its entry-level Arcade SKU has dipped to €199.99/£159.99 – a drop of €80/£50.
The mid-price console, Xbox 360 Pro, which includes a 20GB hard drive and one wireless controller, will have an ERP of €269.99/£199.99 – down from €349.99/£249.99.
And the 120GB Xbox 360 Elite, will be priced at €369.99/£259.99 – a saving of €80/£40.
“This is a real mass market entertainment proposition,” VP of Microsoft Interactive Entertainment Europe Chris Lewis told MCV. “Through this price point, we can reach and introduce a much broader array of consumers to hi-def gaming. With 17.7 million units worldwide installed base we’ve got a real level of momentum – and Europe is a critical geography in that.
“We’ve always had a strategy that said we had to secure the core gamers in the first instance. Having done so and performed in a way we’re very proud of with our core content, such as Halo 3, Bioshock with record-setting attach rates, it’s time to widen the net even further.
“We understand that it’s very important to offer something for everyone. We have a real appetite to appeal to the broad, mass market.
"Titles such as our sports games, Scene It! and Guitar Hero – which has become a preferential experience on Xbox 360 – has already proved that, and we have lot more coming in that space this year.
“But we’re not moving away from the core gamer. We’re really excited about our line-up in 2008. There's GTA IV, with the exclusive content you can only get on 360, Fable 2, which I’ve seen and looks simply stunning, and plenty more besides.
"Then, of course, there’s Gears Of War 2 this Christmas, which promises to be a real defining moment for the industry.”