i think that in markets such as the UK this is confidence, sales are already very good for the 360 in the UK which is by far the largest individual country when it comes to sales in EU. The March price cut in EU was also a resounding success as it massively increased YOY sales.
For Sony main stream EU markets such as Spain this is bit of a roll the dice move but not really desperation as MS doesnt need Spain to suceed with the 360.
Bare in mind also that this "price cut" isnt really a price cut. If you got a decent bundle you'd already be getting the console for roughly this price, i got a Pro and 2 brand new games for £220 last weekend. If anything this is just a clever marketing move to get more exposure to parents who will start to be looking for Xmas presents.
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