The console was launched in 2005
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Microsoft has cut the price of its Xbox 360 video game console in Europe.
From 14th March, the 20 gigabyte hard drive model will cost 270 euros, a drop in price of 80 euros.
In the UK, the entry level machine, which does not come with any hard drive, will cost £159.99, £40 less than the current price.
The price drops mean that the versions of the console are now cheaper than both of its competitors - the Nintendo Wii and Sony's PlayStation 3 (PS3).
Sony's 40GB console currently retails for £299.99 compared to £259.99 for Microsoft's top level machine - the Xbox 360 Elite, which has a 120GB drive.
The Nintendo Wii currently retails for £180 in the UK.
Microsoft said that the price of the entry level machine had been chosen because historically it was "the price point where a console's audience begins to expand".
The Xbox 360 has been losing ground to both of its competitors recently, despite having launched earlier.
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