Amsterdam: Microsoft Corp is slashing the estimated retail price for its Xbox 360 in European markets by 50 euros to 349.99 euros. It also plans to instigate a new model, Xbox 360 Elite, which will have a 120 gigabyte hard disk and rate 449.99 euros.

The company alleged that the lesser price for the Xbox model with a 20 gigabyte hard drive would be in effect from August 24.

On the other hand, the cost of the entry-level model Xbox 360 Core that does not include a hard drive will be abbreviated by 20 euros to 279.99 euros.

Earlier this month, Microsoft declared a price reduction by about 13 percent for its main Xbox 360 model in the US, expecting to increase sales earlier than the crucial holiday season. Microsoft cuts back the U.S. price of the Xbox 360 Premium model by $50 to $350.

Fronted with suddenly tough rivalry from Nintendo Co Ltd’s cheaper Wii console, Microsoft is aspiring at amplifying the demand of the Xbox 360 to an audience outside its core fan base of young men.

The arising consoles edification that bluster graphics recital, which competitors PC’s costing several times as much, means makers are more indisposed to cut rates. That’s mainly true for Microsoft that has yet to turn a profit on the Xbox business it initiated in 2001.

By June end, Microsoft had sold 5.6 million Xbox 360s in the US as compared with 2.8 million Wiis and 1.4 million PS3s -- the latter two launched a year later.