TORONTO, ON - May 15, 2008 - Microsoft Corp. today announced that the Xbox 360 video game and entertainment system has sold over 10 million units in the U.S., making it the first current-generation gaming console to break the 10 million mark in the U.S. The U.S. install base contributes to global sales of over 19 million, more than any other current-generation console.

“This year will be the largest in the history of the video game industry, with Xbox 360 leading the charge in the U.S. and abroad,” said Don Mattrick, senior vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. “History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

This announcement comes on the heels of one of the biggest entertainment launches in history, “Grand Theft Auto IV,” on April 29, 2008. Gamers eager to experience “Grand Theft Auto IV” online helped boost Xbox LIVE global membership to over 12 million this month. Fueled by an unparalleled combination of access to friends and family, the best online gaming features, and the best entertainment content, the Xbox LIVE service has doubled in membership in only one year’s time.

“Reaching an installed base of 10 million consoles in the U.S. is a significant achievement and an essential milestone on the road to market leadership,” said Billy Pidgeon, research manager at IDC. “Perhaps more important is the Xbox 360 worldwide online base - 12 million Xbox LIVE gamers is the largest community in the connected console games sector, which represents the greatest growth opportunity in the console market and where Microsoft has been the leader for two generations.”

Xbox 360 leads with the industry’s highest software attach rate, more than any other console this generation, and is home to the best-selling games. With the launch of Grand Theft Auto IV in April, Xbox 360 is now the home to more than 16 platinum titles that have sold through one million units or more including hits like “Halo 3,” “Madden NFL 07″ and “Madden NFL 08,” “Gears of War,” “Guitar Hero II” and “Guitar Hero III: Legends of Rock” and “Call of Duty®2, Call of Duty®3 and Call of Duty®4: Modern Warfare^TM,” giving Xbox 360 two times more platinum-selling titles than the Wii and a 16:2 lead over the PlayStation 3 in game titles topping one million in sales. Games not only sell better on the Xbox 360, they play better, too: Xbox 360 has 91 titles with a Metacritic review score of 80 or higher, compared with just 22 titles for Wii and 50 titles for PlayStation 3.

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 nearly 400 games in 37 countries. More information can be found online at http://www.xbox.com/xbox360.

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 more than 12 million of members across 37 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 favorite retail games. More information can be found online at http://www.xbox.com/en-us/live.

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.