Retailers are beginning to cut a large chunk off the price of the Xbox 360 Core unit, with one online store knocking £50 off the recommended retail price.
Play.com has slashed the price of the console by a quarter, selling the machine for £149.99 instead of the RRP of £199.99.
The move follows retail chain Makro's decision to sell the Xbox 360 Premium unit for £199.99, effectively reducing it to the same price as Core units.
Microsoft has given no indication that an official price cut is on the way, yet the retail community in Europe is happy to discount the hardware, despite healthy sales.
Rival online store Amazon.co.uk has also reduced the price of the Core Xbox 360, to £189.99. It also currently sells the pink Sony PSP - a sales success last Christmas - for £109.99, £40 below the RRP.