Xbox 360

Microsoft Xbox 360 price drop will make the video game consoler cheaper than the Nintendo Wii.

Microsoft has confirmed that it will drop the price of its Xbox 360 on Friday currently making the Arcade SKU the cheapest video gaming console in Europe.

The Xbox 360 Arcade bundle is to warmly receive a substantial reduction in Europe, dropping the price from €279.95 to €199.95 in Euros, which will now beat rival game consoles Nintendo Wii and the PlayStation 3 on price.

Xbox 360 will be Europe's cheapest next-generation video game console.

The recent price change will allow Microsoft to take the retail fight to Nintendo while further distancing its price from Sony.

There are many rumors that the Xbox 360 could drop to $199.95 in the US. However, we have not confirmed that rumor. On one hand we can say it's just a rumor, but on the other hand, we wouldn't be surprised if Microsoft is planning one. If they are truly going up against Nintendo, they will need to offer insentivative to North America as well.

Spring is here and the summer is coming. We expect to see Microsoft, Nintendo and Sony battle it out until the holidays.