MS: 360 Life-to-Date Sales Hit 28m

Microsoft director of product management for Xbox 360 and Xbox Live Aaron Greenberg told Edge in a phone interview that the company sold 10.3 million Xbox 360s throughout the year. According to Greenberg, this puts Microsoft's console more than 8 million units ahead of the PS3, a console that launched a year after Xbox 360.

"We actually reported our biggest year ever in Xbox history" in terms of hardware and software unit sales and dollar spend, Greenberg said, without revealing actual sales figures. Online sales grew 84 percent year-on-year, with over $1 billion spent since the launch of the console. Xbox Live membership grew to 17 million in 2008 from 10 million in 2007.

Although retailers have downplayed the rapid uptake of digital distribution, Greenberg said, "Online consumer spending is becoming the fastest-growing part of our business. ... Consumers are really transitioning to digital distribution, and it's happening at a very rapid pace, faster than retail growth. ... It exceeded our internal expectations."

Aside from game content such as add-ons and Xbox Live Arcade, Xbox Live also offers movies rentals, TV shows and streaming Netflix movies, which have proven extremely popular.

Last year, Microsoft launched the New Xbox Live Experience, an update that made the console's interface more appealing for the mainstream market.

Earlier today, Microsoft's European gaming arm said hardware sales surpassed 8 million units in the region. "That was a top priority market this year," said Greenberg.

On a PS3 Price Drop

With Wii sales standing at around 45 million units despite being launched a year after Xbox 360, Microsoft's focus has been primarily on high-def rival PS3, a console that retails for $399 for the standard 80GB model.

Analysts have been calling for a PS3 price drop so that Sony can move more consoles and stay competitive with Xbox 360. While Sony has denied it will be dropping the price of the PS3 any time soon, Greenberg offered, "We absolutely expect the PS3 price drop to happen in the next couple of months. We're frankly surprised it's taken this long. ... I would expect they'd have to move on price, sooner than later, for sure."

Top Online Content

A statement from Microsoft said the week between Christmas Day and New Year's Day was the busiest ever for Xbox Live, with 1.5 million concurrent members online. Below are the most popular titles across their respective categories:

Movies:
The Dark Knight
Harold and Kumar Escape from Guantanamo Bay (Unrated)
Hellboy II: The Golden Army
Iron Man
Tropic Thunder

TV shows:
South Park
Family Guy
The Office
House
Heroes

Arcade Games:
A Kindgom for Keflings
Castle Crashers
Super Street Fighter II Turbo HD Remix
Puzzle Arcade
Worms

Game Add-Ons:
Rock Band
Guitar Hero
Halo 3
Gears of War 2
Call of Duty 4