The recent Xbox 360 price cut has proven to be effective for Microsoft, as the console has seen sales increase by 40 percent in Europe. Interestingly, software sales did not see the same increase, as noted by a research firm.

The Xbox 360 had its price cut across all models – the Premium model was reduced to 199 GBP, the Elite to 259 GBP and the basic Arcade model to 159 GBP, making it cheaper than the Wii.

However, research firm Chart-Track is being careful, saying that the “real litmus test will be over the next three to four weeks.”