According to this BBC article, Microsoft announced the European launch date of the Xbox on Tuesday at a gala unveiling in Cannes, France at the home of designer Pierre Cardin.

The console will debut at a cost of £299 ($433). In comparison, Sony just lowered the price of the PlayStation 2 to to £199 ($288).

Microsoft is keen to avoid the problems Sony suffered with PS2 availability last year:

Sandy Duncan, vice-president X-Box EMEA, said 1.5 million consoles would be available in Europe in the first three months.

The article also notes that with the global economic downturn coinciding with Microsoft's launch of both the Xbox and Windows XP, the next four weeks are crucial to the long-term future of Microsoft. Indeed.