XBOX 360(TM) SALES MORE THAN DOUBLE

LONDON - 30 September 2008 - New figures announced today by ChartTrack saw sales of the Microsoft® Xbox 360 increase by 214% in the last two weeks<1>, outselling Sony’s PlayStation 3 by more than two-to-one and reaffirming its strong momentum in Europe in the wake of its recent reduction in estimated retail price (ERP).

A reduction in the Xbox 360 ERP last week has brought the entry-level price point for Xbox 360 down to£129.99. The reduction is only part of the story though, as the largest marketing campaign in the history of Xbox also launches, inviting everyone to live their music, movies and family gaming‘moments’ with Xbox 360 through new television, print and poster ads as well as a totally new look for Xbox.com. Combined with new launches to add to its already impressive line-up of games, movies and wider entertainment content, Xbox 360 is set to drive forward the success that saw sales reach over 6 million in Europe last week.

Through an incredible line-up of games in time for Christmas, including the new singing game Lips and the chance to star in your own B-movie with You’re in the Movies among many others, an ever-growing library of downloadable movies, a revolutionary new interface and new interactive games soon to be available through Xbox LIVE, the Xbox 360 is truly becoming the home of mass-market entertainment with something to offer every interest and budget.

Chris Lewis, Vice President, Interactive Entertainment Business EMEA, said:“This data shows that the Xbox 360 trajectory continues upwards, and not just in the UK. We’ve seen uplift in all countries in Europe and are confident that even at this rate of growth we can keep retail satisfied with a steady supply of consoles throughout the Christmas season. Our commitment to continuously improving and innovating new content, our new high-profile marketing campaign and the fact that we’re now the best-value next-gen console on the market with an entry-level ERP of£129.99 combine to make Xbox 360 the right blend of gaming and wider experiences at the right price to offer unparalleled entertainment for everyone. And these figures prove it.”

From last Friday, 19th September, Xbox 360, which includes a 60GB hard drive and one wireless controller, has an ERP of£169.99. The Xbox 360 Elite, which comes with a massive 120GB hard drive enabling consumers to store huge quantities of content downloaded from Xbox LIVE® Marketplace as well as their own music, has an ERP of£229.99. The Xbox 360 Arcade console, perfect for those wishing to make their first foray into the gaming and entertainment world of Xbox, has an ERP of£129.99.

<1> Figures based on ChartTrack published results for UK 29 September 2008

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For press information, please contact:

Nik Thakkar / 020 3047 4087 / nik_thakkar@jcpr.com

Seema Parmar / 020 3047 4001 / seema_parmar@jcpr.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 360video game systems, the Windows operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating 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 of originaldevelopment 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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