Microsoft is cutting Xbox 360 prices in Europe effective Sptember 19.

The cheapest Arcade unit will retail at €179, while the Premium and Elite packs will sell for €239 and €299, respectively. Microsoft claims it has sold more than 20 million Xbox 360 consoles around the world so far.

The new prices should help the Xbox hold its ground against the cheap Wii and could also force Nintendo to rethink its pricing in the near future.