Microsoft has cut the price of the Xbox 360 in Europe to coincide with the release of the new Xbox 360 Elite.

The Core Xbox 360 will retail for £179.99 from 24 August, and the Premium edition, which includes a 20GB hard drive, wireless controller, headset and HD cables, will sell for £249.99.

The price cut follows a similar reduction earlier this month across the US and Canada.

"We are pleased to offer Xbox 360 at a new, lower estimated retail price," said Stephen McGill, head of gaming at Xbox UK.

The jet black Xbox 360 Elite, which will retail for £299.99, packs a 120GB hard drive and HDMI support.