GamesIndustry.Biz writes: "If you'd told Microsoft five years ago that the second Xbox console would be in its current market position, they would have been high-fiving over the cubicles in Redmond. On the surface, Xbox 360 is looking strong, with 18 million consoles shifted, over 10 million subscribers (though not all paying) on the Live service and the strongest portfolio of software amongst current generation systems, setting a new benchmark for entertainment launches with Halo 3.
But the dynamics have changed. Blu-ray, almost entirely thanks to PlayStation 3, has now killed off HD-DVD, of course. This is expected to provide a huge boost for Sony, ending at a stroke prolonged consumer uncertainty. Meanwhile, despite 360's strengths, PS3 has been catching in many areas, even overtaking 360 in several major continental Europe territories. Has the momentum shifted?
Microsoft's aggressive price-cutting of all 360 models in Europe earlier this week is its gamble to once again derail the accellerating Sony juggernaut. With the lowest-spec model now even cheaper than Nintendo's casual-conquering Wii, Microsoft is banking on this move finally giving it the mass-market traction it so craves. Now overseeing all of Microsoft's entertainment business in Europe, Chris Lewis is spearheading this bold new push across the continent. Here he explains why Xbox can still win."