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Analyst: Microsoft Surging Ahead Online

Strategy Analytics says that the challenges thrown down by Microsoft have ìgone largely unmetî by its rivals.

Strategy Analytics games analyst Martin Olausson has predicted a strengthened market position for Xbox 360 following Microsoft’s E3 showing.

A series of new online features demonstrate that the platform holder is pulling further ahead of Sony and Nintendo - who mainly announced “more of the same” at E3 – in the online entertainment space, according to the firm.

“With Project Natal, full HD streaming of movies and TV shows, and new social media features, Xbox is ushering in a new era of digital entertainment and continues to put new challenges to its competitors in the battle for online entertainment leadership,” said Olausson, who’s director of digital media research at Strategy Analytics. “So far these challenges have gone largely unmet and as a result Nintendo and Sony are falling further and further behind in the online entertainment market.”

Xbox Live GM Marc Whitten says that Microsoft's growing online offerings can add years to the Xbox 360’s lifecycle, while the firm's UK director of Xbox and entertainment, Stephen McGill, told Edge today why he believes the company’s "genuinely changing the face of interactive entertainment."