Robbie Bach, president of Microsoft's Entertainment and Devices Division, says his unit hasn’t seen a slowdown in consumer spending in the face of the economic downturn.

"We have not seen, on the consumer side of our business, a slowdown," he told Reuters.

Bach went on to add that the Xbox business has been doing very well. He said that the videogame industry moves on new release cycles rather than economic ones and predicted a strong holiday shopping season for Xbox.

Microsoft's entertainment and devices division, which includes the Xbox 360, Zune and Windows-based PC gaming, recently achieved its first full fiscal year of profitability, posting a $426 million operating profit off of more than $8 billion in sales.