Update: Added Elite price cut , got official numbers from Major Nelson.

It's been announce that Microsoft will be slashing the cost of the Elite, Pro and Arcade models in Europe.  The Elites will now be €369, down from €449, the Pro will retail for €299 €269, down from €339 €349, and the Arcade model will be retailing for €199, down from €279 €269.  This makes the Pro only €40 more than the Wii and the Arcade €50 cheaper.  It will be interesting to see if this helps move more 360s in mainland Europe where the Wii and the PS3 are soundly beating the 360 at retail. 

Since Microsoft tends to keep the price for the European market closely in line with the US market I think that means we'll see a $369 Elite, $299 Pro and a $199 Arcade in the short future.  It has been rumored that the price cut will be coming around the time GTA 4 ships but might come earlier.  The price cut puts a 360 model first to break the $199 barrier.  The magical price point is know as the mass market price point where consoles see a large up tick in sales.

Source:
kotaku - europe-getting-360-price-cuts
majornelson - xbox-360-european-price-drop