Microsoft has slashed the price of its Xbox console in Europe for the third time since it launched a little over a year ago

Microsoft has today cut the price of its Xbox console in Europe from 249 euros (£159) down to 199 euros (£129), making it the same price as Nintendo's GameCube and cheaper than Sony's PlayStation 2.

"We had a great Christmas and firmly established ourselves as the number-two console player in this region," said Peter Moore, corporate vice president, worldwide retail sales and marketing, home and entertainment division, Microsoft. "We outsold some very long-established competition and enjoyed near sell-out status, gaining market share along the way. This price change shows we are not content to rest on our laurels -- we will continue to be aggressive in building upon this momentum throughout the year."

"This is also great news for gamers," said Moore. "Our success in Europe and increased market share means we can take action to remain competitive and allow even more gamers to experience Xbox -- and this is a fantastic time to experience Xbox. Hotly anticipated games like Brute Force, Midtown Madness 3 and MotoGP 2 are on the way in the coming months. Also, Xbox Live -- which launched 14 March in eight European countries -- is bringing Xbox gamers the very best in always-on, fast-action Live gaming. We're looking forward to continuing our success in Europe through the year," he added.

Microsoft also confirmed today that it has sold in excess of two million Xbox consoles in Europe to date, placing it, according to today's press release, well ahead of Nintendo's GameCube.

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