With the 2006 fiscal year coming to an end, and Microsoft topping financial analysts' previsions with a reported $44.28 billion dollars in revenue, the Redmond Company has issued an optimistic forecast relating to Xbox 360 sales in the FY07. These predictions are based in part on consumer demand for Xbox 360, SQL Server 2005, Visual Studio 2005 and Microsoft Dynamics CRM 3.0 that amounted for a combined 31% growth in the final quarter of 2006. In particular, Microsoft sold no less than 1.8 million consoles in the quarter ended on June 30, 2005, which pushed its global units sales over the 5 million milestone. In this context Microsoft expects to sell no less than 15 million Xbox 360 console by June 30 2007, with an estimated 10 million units sold by the end of 2006.

Microsoft is relying on timing in its market battle with Sony. Its main competitor will launch Sony PlayStation 3 with prices expected to reach $600. However, the market performance of Microsoft's next generation console on Sony home ground has been poor by comparison, and the forecasts don't point to a change in the market tendencies. In this context price will provide the definitive incentive for the shift in consumer preference as the Xbox 360 sells for only $400.