After previously denying anything of the sort earlier this month, Microsoft has now confirmed a price cut for the Xbox 360 in Europe, reports GamesIndustry. The 20GB Premium model of the console will now retail for £299.99 (€349 EUR, $400 USD) and the hard drive-free Core unit will sell for £179.99 (€279 EUR, $360 USD).

The discount will come into effect from Friday, along with the launch of the Xbox 360 Elite which can be snapped up for £399.99 (€449.99 EUR, $600 USD) across Euroland.

"We're pleased to be able to offer Xbox 360 at a new, lower estimated retail price," said Stephen McGill, head of gaming & entertainment for Xbox UK. "The Xbox 360 opens up whole new avenues of entertainment for those who seek the ultimate gaming and entertainment experience." Brownie points for perfect product plugging there, Mr. McGill.

"Whether it's our lead in console sales, record-setting games and accessory attach rates or our leading online service, evidence is everywhere that Xbox is thriving," he continued.

Okay, that's enough. We get the idea.

The cheaper Xbox 360 range follows a similar move by Microsoft in North America, and is certain to put further pressure on Sony, which has so far resisted cutting the price of the PS3 in Europe. Its £425 machine is now a whopping £125 more expensive than the Xbox 360 Elite.