Maybe Microsoft uses VGC?

The UK price drop is reasonable, but the more I think about the more I realise the wider Europe price cuts are EPIC. Within the next two months we'll start to get an idea of whether MS can retain enough EU market share to stay ahead of Sony this generation. We'll get an even better idea of it if they bring a drop to the USA.

80 Euros is $122 US DOLLARS!!!!!! WOW!!! Anything REMOTELY comparable to that in the USA before GTAIV and Sony could become irrelevant in the USA this generation.

Of course MS makes less money on the consoles in the USA because they charge less (even accounting for tax) so they have less room to drop, but still.....

Oh, and MS was TOTALLY behind all that crap about a 50 Euro drop.

The cost of living is shooting up in the UK. In real terms our earnings are going backwards. There was an item on the radio this morning saying we're all £1700 worse off that this time last year. Petrol prices are through the roof and fuel prices have just had massive increases. My parents have stopped heating most of the house and rely on a wood fire in the sitting room as electricity and gas prices are huge. Where I live we've also had massive water rate increases. We were already the highest in the country because of all the beaches. House prices have more than quadrupled in the last 10 years but wages haven't gone up much at all.

The average wage is about £25,000 but most people earn less than that, it's boosted by a few hundred thousand very high earners. Here (Cornwall) the average wage is about £17,000 with half of people earning £12,000 or less. So no, we don't earn more "on the island", the UK is a very very expensive place to live.

On your specific prices, the Wii is £179.99, a 40gb PS3 is £299, you can look at some food prices at tesco.com and rent widely ranges depending on where you are in the country. Take a look at rightmove.co.uk if you're really interested. For buying the average house price is about £200,000. Alcohol and cigarettes are very heavily taxed in the UK. Booze runs across to France to stock up are common because even with petrol and ferry costs you save money.

Outward migration is sky rocketing largely because of the cost of living and social changes. (Which is interesting as so is inward migration from Eastern Europe, the Asian sub-continent and Africa.) The people leaving are mainly native Britons going to the US, Canada, Australia and Spain. I'm seriously thinking of joining them, the wages just don't match the cost of living if you want to enjoy any sort of non-essentials like gaming. The UK isn't in a great state at the moment to be honest.

I have no true link to provide but :

MS will make an massive advertising campaign until late summer to promote Xbox360 in Europe
there are going to massively target the GTA4 title
they are thinking about a bundle ...

(gamekult.com talking to a PR at MS France)

Jeez. 122 US dollars? That's crazy.

Remember that MS is an American company and get their income in dollars. €80 is around $125 USD now with the weak dollar so this is a huge price drop for them.

Come to Australia:)

Mother of god.

Yeah I didn't think about it like that. To Microsoft this really is like a $120 price drop. They must be SERIOUSLY lowering the costs of the Xbox 360, or are actually ready to take losses again.