Microsoft sees Xbox 360 sales growth in '08

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By Scott Hillis

REDMOND, Washington, Dec 19 (Reuters) - Microsoft Corp (MSFT.O) expects to sell more Xbox 360 consoles in 2008 than in 2007, with Europe standing out as a key battleground for dominance in the $30 billion video game industry.

In Japan, where the Xbox 360 has far lagged Nintendo Co Ltd's (7974.OS) Wii and Sony Corp's (6758.T) PlayStation 3, Microsoft said recent and upcoming games from popular Japanese designers should boost sales.

"We will sell more consoles next year than this year," Jeff Bell, head of global marketing for Microsoft's games business, told Reuters in an interview.

"We don't want to trade places with anybody," Bell said.

He said that the Xbox 360 was strong in Britain and was gaining market share in France and Germany, but that Sony had also been lifted in Europe by a recent price cut for the PS3.

"Europe for us is still the swing," Bell said. "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.