Xbox 360 Records Its Biggest Year Ever

Driven by record sales at retail along with an 84 percent
jump in online consumer spending; global install base lead over PlayStation 3
expands to more than 8 million units.

REDMOND, Wash. — Jan. 5, 2009 — Despite a tough
economy, the gaming industry held strong in 2008 and Microsoft Corp.’s Xbox 360
video game and entertainment system recorded the biggest year in Xbox history,
with more consoles, games and online entertainment experiences sold than any previous
year. It was a year in which life-to-date unit sales of Xbox 360 systems
climbed to 28 million consoles worldwide — expanding the product’s lead over
Sony PlayStation 3 to more than 8 million units. The Xbox LIVE community also
grew to more than 17 million active members, as online consumer spending
increased 84 percent from last year. Since the launch of the Xbox 360 three
years ago, more than $1 billion has been spent on Xbox LIVE. This amazing
growth was fueled by the launch of the New Xbox Experience1; the
broadest selection of hit games, TV shows, and movies available; and
mass-market price points, starting at $199.

Xbox 360 is experiencing record-setting sales around the
globe, particularly in Japan and Europe, nearly doubling market share in these
key territories. In Europe, the Middle East and Africa (EMEA) specifically,
Xbox 360 has now sold more than 8 million units, extending its lead over the
PS3 by more than 1 million units.

“For Xbox, 2008 will be remembered around the world as a
pivotal growth year at retail and online — even in the face of tough economic
conditions,” said Don Mattrick, senior vice president of the Interactive
Entertainment Business at Microsoft. “Worldwide, a record number of players
flocked to our broadest games and entertainment lineup ever, while the New Xbox
Experience thrilled millions of fans by making our console even more engaging.
And yet, we’ve only provided a glimpse into the new world of interactive
entertainment that we’re imagining. The best of Xbox 360 is yet to come.”

One of the biggest trends in 2008 was consumers taking
advantage of the convenience and value with digital distribution of games and
entertainment content. One of the most popular offerings this holiday was
Netflix on Xbox 360, which as a Netflix member provides users with access to
unlimited viewing of more than 12,000 movies and TV shows in DVD quality as
well as many in high definition. 2 In addition, Xbox LIVE is home to
the largest library of downloadable games, game add-ons, movies and TV shows.

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