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 Experience; 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. In addition, Xbox LIVE is home to the largest library of downloadable games, game add-ons, movies and TV shows.

Between Christmas and New Year's Day, Xbox LIVE experienced its busiest week ever, with a record of more than 1.5 million concurrent members online. During that week, some of the most popular movies, TV shows, arcade games and game add-ons included these:

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 Kingdom 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