With VAT should be £384, WTF MICROSOFT.
Like I said, the EU has tougher environmental policies on electronic goods, one of which imposes the costs of collecting and recycling electronic products at their end of life onto the manufacturers, thus making that service free to the consumer. Electronics sold in the EU also must meet stricter environmental standards during manufacture. This makes the cost of selling electronic goods in the EU higher than in the US, so they typically charge more here.
Microsoft are still probably making a profit in that direct price conversion, but it's not as much as it first might seem.