Reports from Europe suggest that Microsoft's Xbox 360 will launch at 349 Euros.

The German website GameFront, is reporting that the Xbox 360 will launch at 349 Euros. The figure apparently comes from Austrian distributors who have received the information from Microsoft. 349 Euro would translate to a £249 price point here in the UK, and the trade price is said to offer retailers enough room to sell the console at the lower price of 299 Euros.

Recently, however, rumours suggest that because Sony has openly said that the PlayStation 3 will be very expensive, Microsoft are planning on upping the retail price of the Xbox 360, worried that the console's low price will make the product seem inferior to the PlayStation 3. A higher price would also mean the company makes less of a loss on each unit.