Microsoft has predicted that it will sell more Xbox 360 units next year than it managed in 2007 – particularly in Japan.
And the platform holder has labelled Europe as the vital territory to conquer in order to outperform rival Sony.
"We will sell more consoles next year than this year," head of global marketing for Microsoft's games business Jeff Bell told Reuters.
He added: "Europe for us is still the swing. The biggest challenge is that Sony as a brand has had greater staying power than in other areas. Not just PlayStation 3, but Sony as a brand."
Bell said that the Xbox 360 was still strong in Britain and gaining market share in France and Germany.
He added that the 360's potential in Japan was being improved by more games being made by popular Japanese designers.