Traditionally, Europe has been Sony territory. Microsoft has had an uphill climb. Well, save for recently thanks to a cheaper Xbox 360.
The recent September price cuts that dropped the Xbox Arcade to £129.99 gave the company its biggest Euro sales week ever. According to Xbox Europe's Neil Thompson, "To date, we have sold 7 million consoles in Europe and recently enjoyed our biggest sales week ever."
Microsoft did its own research, discovering that the average UK household is in the market for an entertainment product suitable for the entire family. Microsoft thinks it can reach that market best with titles like Lips, You're in the Movies and Scene It. The elephant in the room? Nintendo.