Microsoft moved to lower the price of its Xbox 360 console in Europe on Monday, about two weeks after it made a similar move in the United States and Canada. In EU countries, the price of the high-end console drops by 50 euros to 349.99 euros ($470 USD), while the Core model drops 20 euros to 279.99 euros ($378 USD). In addition, the Xbox 360 Elite will premiere at a price of 449.99 euros on August 24.
The price cuts are intended to fend off stronger than anticipated competition from Nintendo and its Wii, which have been selling at a torrid pace since its release last November. Additionally, Microsoft is hoping a cheaper price will help it to expand its core fan base, which primarily consists of younger men. Analysts say that much of the Wii's success can be explained by its appeal to a much wider consumer base