Let me run some calculations here:
Typical VAT in Europe (not for every country, but for many): 21%
199/1.21 euros in usd = $244
There are probably a few more taxes which need to be subtracted (recycling fees for example), but that gives us an idea of how much Microsoft would get from the sale.
My Mario Kart Wii friend code: 2707-1866-0957