On the heels its Xbox 360 console's record- breaking sales performance over Black Friday weekend in the U.S., outselling Sony's PlayStation 3 by a three-to-one ratio and a 25 percent increase from Xbox 360 Black Friday sales figures from 2007, Microsoft said Wednesday that the Japanese market is an "interesting challenge." Speaking in an interview at the Reuters Media Summit, Microsoft's corporate vice president of Strategy and Business Development Shane Kim explained the company's focus on the Xbox 360 internationally. "We continue to focus tremendously internationally. Europe in particular is very big area of focus for us, Japan has always been an important market for us," Kim said. "That's an interesting challenge because we're competing with Sony and Nintendo on their home turf there, but we've enjoyed greater success recently with Xbox 360 outselling the competition in many cases." "We're seeing greater third-party support from Japanese publishers, which also helps with Japanese content." "We're going to continue to grow internationally because, again, we want to build on that core gaming base that we've established from the previous generation," he said. Read the full article

Microsoft executive Shane Kim said Wednesday that it's "way too early" to tell if the current generation of consoles is the last. Speaking at the Reuters Media Summit, Kim also said that it's too soon to declare a winner, maintaining that this generation will have a long lifespan. "I never say never. I think it's way too early to say this will be the last, or try to declare a winner in this generation," Kim said. "I do believe that this generation will enjoy a very long lifecycle, and that includes Xbox 360." "It will be an interesting challenge and question for all the players in the industry to think hard about what will define the next generation. It may not be hardware, graphical, processing power. It could very well be innovations and interface, or in the online services. If that's the case, we feel really great about how we're positioned with Xbox Live." Read the full article

Microsoft's Xbox 360 video game and entertainment system kicked off the holidays with record- breaking console sales on one of the biggest shopping weekends of the year in the U.S. Retailers reported Xbox 360 console sales over the Black Friday weekend were on pace to beat previous years, outselling the PlayStation 3 by a three-to-one ratio and estimating a 25 percent increase from Xbox 360 Black Friday sales figures from 2007. Strong game sales rounded out a historic Black Friday for Xbox 360, with record-paced software sales continuing for key Microsoft titles, such as "Gears of War 2," "Fable II," and "Lips." Xbox 360 continues to have the highest game attach rate of any console at 8.1 games per console. "We entered into the Black Friday sales period with cautious optimism, knowing that dollar for dollar, Xbox 360 offers more social entertainment value than any other console on the market," said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft. "Record Black Friday sales in the U.S., coupled with our existing global install base of 25 million and an online community of more than 14 million Xbox Live members, have laid the groundwork for continued global sales momentum in 2009." Xbox 360 sales have also surged worldwide since the September price drop, outselling the PlayStation 3 week over week across Europe. Console sales in Europe are up as much as 400 percent, with sales nearly double year over year and reaching 7 million consoles sold this generation. With a mass-market price point starting at $199.99 worldwide (estimated retail price) for Xbox 360 Arcade, a games lineup of more broad- appeal social titles than any other platform, and the recently launched New Xbox Experience, Xbox 360 is leading the industry and inviting everyone to play. Read the full article

Microsoft's approach to the "long view" in expansive ventures such as Xbox was the right strategy, according to a new report. The staff at Redmond's Directions on Microsoft maintains that with Xbox, the software giant sustained breathtaking losses, but gained a foothold in the market. "Microsoft has always taken the long view. It routinely invests billions of dollars in expansive ventures such as Xbox, MSN, and Dynamics with an eye to far-off opportunities and threats. Once engaged, it very rarely retreats. The company will sustain breathtaking losses to gain a foothold in a market (think of Xbox) and endure hits to its image to change a business model that isn't working (think of MSN)." "Microsoft continually looks inward and studies how it can improve itself. But despite some long false starts and outright failures (LAN Manager, Windows Mobile, and WebTV), Microsoft has assembled the industry's largest portfolio of enterprise and consumer software-the least of which generates revenue in the hundreds of millions of dollars." "Lesson: Business isn't a sprint; it's a marathon. Be persistent." Read the full article

The Nintendo Wii is once again proving to be a hot seller this holiday season. The video game console was the most popular product on Black Friday, according to PriceGrabber. The Wii also led the way as the most searched-for product on eBay, followed by Wii Fit. PriceGrabber maintains that discounts on popular electronics contributed to a jump in online sales. "Prior to the Black Friday weekend, 71 percent of shoppers intended to spend less money this holiday season compared to last year and 66 percent planned to give practical gifts," said Ron LaPierre, president of PriceGrabber.com. "Thanksgiving and Black Friday traffic shows that value drives consumer spending. Consumers are responding to aggressive promotions and price drops on popular electronics." However, Bill Martin, co-founder of retail industry research ShopperTrak, warns that while the positive start to the season proves a willingness to spend, the markdowns will not last forever. "While this is an encouraging start for retailers, there's no guarantee these deep discounts will continue after Black Friday weekend, which could slow spending," Martin said in a statement. "Additionally, consumers have just 27 days to shop this year as opposed to 32 in 2007, which may catch some procrastinating consumers off guard, leading to lower sales levels." Read the full article

Sony Computer Entertainment America (SCEA) today unveiled comprehensive line up of software for PlayStation 3 (PS3), PSP (PlayStation Portable), and PlayStation 2 available during the 2008 holiday season. With 19 titles from SCEA and limited edition hardware bundles providing great consumer value, PlayStation aims to have fresh content for gamers this holiday season whether they are at home, traveling, or celebrating the holidays with family and friends. In conjunction with the PS3 system's recently celebrated second anniversary, SCEA released the limited-edition Uncharted: Drake's Fortune PS3 system bundle. Featuring an impressive 160GB hard drive, the new PS3 system provides consumers with enough space to store a robust combination of games and entertainment content, such as 24 high definition movies, 8 standard definition television shows, 100 PlayStation Network games, 2,000 music files, and 2,000 photos. The PS3 system has the strongest first party software lineup heading into the holiday season with titles like LittleBigPlanet from Media Molecule and its groundbreaking user generated content; Resistance 2 from Insomniac Games, with unprecedented 60 player multiplayer mayhem; Motorstorm Pacific Rift, with no holds barred racing action; and BUZZ! Quiz TV, the quiz game show with over 5,000 questions and easy-to-use wireless buzzers. "This holiday season we have gifts of the highest caliber to suit the taste of every gamer in your household; from community based experiences like LittleBigPlanet, to first person shooters like Resistance 2 to racing games like Motorstorm: Pacific Rift to casual games like SingStar and BUZZ!," said Scott A. Steinberg, vice president of product marketing, SCEA. "We are dedicated to delivering entertainment of the finest quality to our consumers to help make this holiday a lot more enjoyable." Winter travel is a bit brighter with the newly released PSP system (PSP- 3000), which offers an enhanced LCD screen with a wider color gamut and higher contrast ratio and a built-in microphone. The new PSP system is capable of displaying movies and photos in more natural and vibrant colors on its high resolution 4.3 inch wide screen. Available in Mystic Silver or Piano Black, the updated hardware is available in two limited edition Ratchet & Clank: Size Matters PSP Entertainment Packs. Titles like BUZZ! Master Quiz, NBA 09 The Inside, and Secret Agent Clank will make the trip to visit family more enjoyable. Family and friends can easily entertain at home during the holiday season with all new versions of the hit interactive singing experience SingStar for both the PS3 and PlayStation 2 systems. December 2 marks the release of the disco-centric SingStar ABBA which joins currently available the recently released versions of the hit franchise including SingStar Country, SingStar Pop vol. 22, and SingStar Legends for PlayStation 2. For PS3 owners, SingStar Vo1. 2 and SingStar ABBA add new tracks and videos for the rising star in your family to perform. Read the full article

Boris Schneider-Johne, product manager for Xbox 360 at Microsoft Germany, explained the company's stance on the importance of exclusive titles. "That is difficult to assess. In the past, in the eighties and nineties, that was a major issue. I remember the big 'Mario vs. Sonic' debates. What we see today is that the influence of exclusive titles on the sales curves becomes ever smaller," Schneider-Johne told Golem.de in an interview. "In addition, we are in a situation that there is a head-to-head race on several consoles and that nobody is super clear in leadership - especially in matters of the PlayStation 3 against Xbox 360." "Given the production costs of the games, it is hardly possible for developers to commit itself exclusively to someone. Now Sony makes its own games for the console, we make our own games for the console. The titles are exclusive, as they are also attempts turnout the best of the console, but someone like Electronic Arts or Activision can have a business model of rarely developing for a console exclusively. Therefore, the exclusive title is a little less important." Read the full article

The PlayStation 3's Blu-ray player may boost sales of the console, according to market research firm iSuppli. "Going forward, the PlayStation 3's Blu-ray player is likely to help propel its sales. Sony will do more to increase the adoption of the PS3 by introducing creative marketing strategies, such as bundling software, online services and accessories together in order to maintain pricing and to boost adoption by new users," the iSuppli report said. "Meanwhile, Microsoft slashed the price of its Xbox 360 by $50 earlier this year in order to help stimulate growth and to stave off any advance from the PS3." "All these moves are likely to have a huge impact on the video-game market over the next few years. However, when the next generation of consoles hit the market in the late 2010 to 2011 time frame, the competitive cards will be reshuffled again for Nintendo, Microsoft and Sony." Read the full article

Russia's invasion of Georgia Friday is eerily similar to the storyline of a video game, Tom Clancy's Ghost Recon. "The year is 2008, and the world teeters on the brink of war. Radical ultranationalists have seized power in Moscow - their goal, the reestablishment of the old Soviet empire. Ukraine, Belarus and Kazakhstan - one by one the nearby independent republics slip back into the Russian orbit. Russian tanks sit in the Caucasus Mountains and the Baltic forests, poised to strike to the south and east. The world hold its breath, and waits," the storyline for Ghost Recon reads. U.S.-allied Georgia launched a surprise military offensive to retake South Ossetia earlier Friday, triggering a Russian counterattack. Unlike the 2001 tactical shooter, there are no reports of U.S. involvement in the conflict or a major political upheaval in Moscow. "For one small group of elite soldiers, the war has already begun: U.S. Special Forces Group 5, First Battalion, D Company. Deployed on peacekeeping duty to the Republic of Georgia in the Caucasus, this handful of Green Berets represents the very tip of the spear - the first line of defense. Equipped with the latest battlefield technology, and trained in the latest techniques of covert warfare, they strike - swiftly, silently, and invisibly." "They call themselves 'The Ghosts.'" Read the full article

With Sony more than doubling PS3 sales in the April-June quarter from last year, the company is reportedly still struggling to reduce the console's production costs. "The activity of video games has instead returned to profit, thanks to an increase of 16.8 percent over a year of its quarterly turnover pulled off by the sales of the PlayStation 3 console, by the growing popularity of the handheld PSP model, and games that accompany these two multimedia platforms," an AFX report said. Back in January, Nikko Citigroup's Kota Ezawa told BusinessWeek that Sony cut the cost per machine to around $400 now, from above $800 just before it went on sale. This was a result of shrinking the PS3's chips and tweaking its design, as Sony continues its efforts to trim down production costs. "The PS3 console is still unprofitable alone, but Sony is struggling to gradually reduce the cost of production." Read the full article