Amsterdam: Microsoft Corp is slashing the estimated retail price for its Xbox 360 in European markets by 50 euros to 349.99 euros. It also plans to instigate a new model, Xbox 360 Elite, which will have a 120 gigabyte hard disk and rate 449.99 euros.

The company alleged that the lesser price for the Xbox model with a 20 gigabyte hard drive would be in effect from August 24.

European markets turned positive as it gained the highest in a year. The increase in the market was because of the US Federal Reserve cutting down the lending rates.