From the press release:
From Friday, 14th March, Xbox 360, which includes a 20GB hard drive and one wireless controller, will have an ERP of £199.99 - a saving of £50 on the current ERP. The Xbox 360 Elite, which comes with a massive 120GB hard drive enabling consumers to store huge quantities of content downloaded from Xbox LIVE™ Marketplace as well as their own music, will have an ERP of £259.99 - a saving of £40. The Xbox 360 Arcade console, perfect for those wishing to make their first foray into the gaming and entertainment world of Xbox, will have an ERP of £159.99 - a saving of £40.In Euro markets, the new prices will be €199 for the Arcade, €269 for the Premium, and €369 for the Elite console. This is an across-the-board drop of €80 and brings pricing more in line with what U.S. buyers pay.
For example, the Arcade version, which sells for $279 in the US, sells for the equivalent of $306 in Euro markets and $322 in the U.K. (at the time of this writing). Compare this to the prior converted prices of $429 in Euro markets and $403 in the U.K.
This goes further: it makes the Xbox 360 cheaper than the Wii in Europe. The Wii sells for £179 in the UK and €249 in Euro markets. Still, as I've said previously, it's all about the fun - though at these prices you'd expect the Xbox 360 to see a unswing in sales.