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Microsoft cut the prices of its Xbox 360 video game console in Europe by up to 28 percent on Monday in a bid to promote sales in a key battleground in the fast-growing industry.

The cut brought the cheapest Arcade version to 200 euros ($307 U.S. dollars) and the high-end Elite to 370 euros ($568 dollars).

"Xbox 360 is now mass market in Europe," Chris Lewis, vice president of Microsoft's interactive entertainment business in Europe, said in a statement.

History has shown that the reduced price point "is where a console's audience begins to expand, and with these new ERP's in place, we're ready to bring more consumers in the Xbox 360 world," Lewis added.

The reductions were made as Sony Corp's PlayStation 3 appears set to capitalize on the company's recent victory in the high-definition DVD battle.

It was the second time in less than a year that Microsoft had attempted to gain market share for the Xbox 360. It shaved 7 percent off the euro price of its low-end model and 13 percent off the main Premium model in last August.

The company claims that the Xbox 360 is now the number one next generation console in Europe as well as the Middle East and Africa, where it holds 42 percent of the market.

The PlayStation brand has long dominated the European console market. Meanwhile, Nintendo is winning customers with its Wii machine that sports unique motion-sensing controls and games that are easier to learn.


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