The platform holder brought the entry-level SRP for the Arcade console down to £129.99 on Friday, with the standard 60GB 360 priced at £169.99 - leaving it with two consoles under Wii's bargain £179.99 pricetag.
The company also cut the price of its 120GB Elite to £229.99.
Chris Lewis, Vice President, Interactive Entertainment Business EMEA, said: “We’re very excited that more consumers in Europe are joining the ever-growing Xbox 360 community. We’re now the best-value next-gen console on the market with an entry-level ERP of £129.99, and consumers have clearly responded to that offering.
“We’re supporting this momentum by putting launch-level investment into a European advertising campaign, launching this week, which shows how Xbox 360 is changing the way consumers experience entertainment. With the New Xbox Experience on the horizon, and great titles like Lips, Scene It?; You’re In The Movies, Fable 2, and more, there’s never been a better time to jump in to all that Xbox 360 offers.”