From Ripten: "Amazon.co.uk can now confirm the new UK prices. The Xbox 360 Arcade will drop from £199.99 to £159.99 (cheaper than the Nintendo Wii no less, a phenomenon we can recall from December 2007), the Xbox 360 Premium from £249.99 to £199.99, and the Xbox 360 Elite from £299.99 to £259.99."

At the time of this posting, there was no word if the price cut would be coming to the US, but watch for more here soon!

UPDATE: Added official press release below on Xbox 360 price drop from Microsoft Europe.

UPDATE: MajorNelson "cuts to the chase" giving word of the official price drop, which begins Friday, 3/14/08 for Europe:
Xbox 360 - was: €349.99 / £249.99 now: €269.99 / £199.99
Xbox 360 Elite - was: €449.99 / £299.99 now: €369.99 / £259.99
Xbox 360 Arcade – was €269.99 / £199.99 now €199.99 / £159.99

From Ripten

Microsoft Press release:

Everyone's Invited To Experience Xbox 360 As Microsoft Lowers Estimated Retail Price in Europe
With Estimated Retail Price Starting At £159.99, Even More European Consumers Can Enjoy The Definitive High-Definition Gaming and Entertainment Experience
LONDON - Monday 10th March, 2008 - Microsoft today announced it is lowering the estimated retail price (ERP) for its Xbox 360™ family of consoles in Europe. Now with an entry-level ERP of £159.99, Xbox 360 is a mass market entertainment proposition with something to offer for every interest and budget.

From Friday, 14th March, Xbox 360, which includes a 20GB hard drive and one wireless controller, will have an ERP of £199.99 – a saving of £50 on the current ERP. The Xbox 360 Elite, which comes with a massive 120GB hard drive enabling consumers to store huge quantities of content downloaded from Xbox LIVE™ Marketplace as well as their own music, will have an ERP of £259.99 – a saving of £40. The Xbox 360 Arcade console, perfect for those wishing to make their first foray into the gaming and entertainment world of Xbox, will have an ERP of £159.99 – a saving of £40.

Xbox 360 is the number one next-gen console in EMEA, owning 42% of the market in terms of life-to-date revenue. Xbox 360 continues to enjoy the highest software attach rate of any game console in Europe with more than 7.0 games sold per console (PS3: 3.8; Wii 3.5) after 26 months on the market[1].

The new ERPs are part of Microsoft’s ongoing strategy to open up the ultimate in high-definition gaming and entertainment to an even wider audience, with an offering for everyone:

· Best Choice for Families:

o Xbox 360 grows as your family does, offering games and entertainment for every member of the family – from movies to games to music videos.

o With over 150 3+ rated[2] games and unparalleled parental controls, parents can feel good about their kids playing Xbox 360

· Most Diverse Entertainment:

o Xbox 360 offers great choice in high-definition entertainment

o Xbox Live Video Store offers a wide variety of movies to download, both in HD and SD, enabling great entertainment in the living room at the press of a button

o It’s easy to view and enjoy video and photos on Xbox 360 as well as connect wirelessly to share content with a Windows Media Center PC

· The Best Games:

o There will be over 1,000 games available on Xbox 360 by the end of the year, with something for every skill level, interest and taste

o New community games allow gamers to sample the best of indie games, providing innovative new ways to play and enjoy

o Blockbuster franchises like Grand Theft Auto IV, with exclusive downloadable episodes on Xbox LIVE, and Rock Band make Xbox 360 the place to be this Spring

o Xbox 360 exclusives for 2008 include Fable 2, Gears of War 2 and Too Human, setting new standards for next-generation gaming

“Xbox 360 is now mass market in Europe,” said Chris Lewis, Vice President, Microsoft Interactive Entertainment Business Europe. “We have reached and surpassed several key milestones that form part of our long term strategic plan to achieve critical mass in Europe; and our portfolio now offers the kind of mainstream entertainment experiences that secure wider appeal for Xbox 360. These factors allow us to execute on our strategy to widen the market for Xbox 360, as planned.

“We continue to offer intense, immersive gaming experiences for gamers – but now we’re priced in a way that will allow new consumers to find out for themselves why Xbox 360 is the ultimate in high-definition entertainment.” said Lewis. “History shows that £159.99 is the price point where a console’s audience begins to expand, and with these new ERPs in place we’re ready to bring more consumers into the Xbox 360 world.”

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