Microsoft Cuts Price of Xbox in Europe

Ramping up the competition in game consoles, Microsoft Corp. cut the price of its Xbox machine in Europe.

The move to slash prices by as much as 20% puts pressure on Sony Corp. and Nintendo Co. to follow suit. Retailers and analysts are widely anticipating a drop in U.S. console prices this year.

Although Microsoft loses money on each console it sells, the Redmond, Wash., firm makes money selling and licensing games for its consoles.