According to Dutch retailer Bart Smit, the rumored price cut of the Euro Xbox 360 is happening!!

As previously speculated the Xbox 360 Elite has dropped from €549.95 to €399.95.
The Pro Console (which includes Viva Pinata and Forza Motorsport 2) goes from €399.95 to €299.95.
While the Arcade bundle is down from €279.95 to €199.95.



At €199.95 the Xbox 360 Arcade would become the cheapest console of this generation in Europe (!), edging out the Nintendo Wii which retails for €249.95.

The Microsoft camp has stated that the key to better sales in 2008 is the European market, where Microsoft is forced to fend off the strong PlayStation brand awareness and the popularity of the Nintendo Wii.

However, considering Xbox 360's popularity in the Western market we don't recommend North American buyers begin holding their breath for a price-drop just yet.