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Xbox 360 European Sales

European leadership position strengthened following recent price adjustment

LONDON - Thursday 17th April, 2008- The momentum behind Xbox 360 continues to grow, as Microsoft today announced that European sales have more than doubled in the wake of recent adjustments of the estimated retail price (ERP), solidifying its leadership position as the number one next-generation console in Europe and significantly broadening the console’s audience.

“Xbox 360 is truly the next-generation console of choice among consumers, and today’s numbers are proof that we are delivering on our commitment to achieve critical mass in Europe,” said Chris Lewis, Vice President, Microsoft Interactive Entertainment Business Europe.“The highly competitive ERP, coupled with entertainment content that’s appealing to everyone in the home, makes Xbox 360 the ultimate high-definition entertainment choice, and it’s clear that we’re already seeing this resonate with consumers.”

Xbox 360 is the number one next-gen console in EMEA, owning 42% of the market in terms of life-to-date revenue. Xbox 360 continues to enjoy the highest software attach rate of any game console in Europe with more than 7.0 games sold per console (PS3: 3.8; Wii 3.5) after 27 months on the market.

On Friday, 14th March, Microsoft lowered the ERP for its Xbox 360™ family of consoles in Europe. Now with an entry-level ERP of?159.99, Xbox 360 is a video game and entertainment system that is appealing to an even broader audience. Upcoming releases of blockbuster games such as“Grand Theft Auto IV,”“Rock Band,”“Lego Indiana Jones” and“Ninja Gaiden 2,” will continue this momentum and give consumers even more reasons to buy Xbox 360.

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For press information, please contact:

Kate Szlendak / 0118 909 5334 / i-kaszle@microsoft.com

About Xbox 360

Xbox 360 is a superior video game and entertainment system delivering the best games, unique entertainment features and a unified online gaming network that revolve around gamers. Xbox 360 has a portfolio of more than 300 games in nearly 40 countries. More information can be found online at http://www.xbox.com/xbox360.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox and Xbox 360 video game systems, the Windows operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed tocreating innovative and diverse games for Windows ( http://www.microsoft.com/games), including such franchises as“Age of Empires,”“Flight Simulator” and“Zoo Tycoon”; Xbox and Xbox 360 ( http://www.xbox.com), including such games as“Gears of War” and franchises such as“Halo,”“Fable,”“Project Gotham Racing” and“Forza Motorsport”; and MSN Games ( http://www.games.msn.com), the official games channel for the MSN network and home to such hits as“Bejeweled” and“Hexic.”

About Xbox LIVE

Xbox LIVE is the first and most comprehensive unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox LIVE connects millions of members across 26 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox LIVE Arcade, free and premium playable game demos, music videos, TV shows and movies in the United States as well as new game levels, characters and vehicles for all their favourite retail games. More information can be found online at http://www.xbox.com/en-us/live.

About Xbox LIVE Arcade

Xbox LIVE Arcade on Xbox 360 is the premier destination for digitally distributed high-definition games. Xbox LIVE Arcade is a fast-growing phenomenon with a diverse library oforiginal development and classic titles from the world’s best independent and established developers and publishers. With a dynamically updated library and free trials for every title, Xbox LIVE Arcade makes it easy for every type of gamer— from casual to hard-core— to get instantly immersed in the fun. Xbox LIVE Arcade also lets friends connect and play these incredible games either from the same room or from around the world via the Xbox LIVE online entertainment network. More information can be found online at http://www.xbox.com/en-US/games/livearcade.

About Microsoft

Founded in 1975, Microsoft (Nasdaq“MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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