Impact: At 30 million units the Xbox 360 has already surpassed lifetime sales of the original Xbox by 5 million. The challenge now is to both maintain that existing user base, while continuing to grow the overall installed base. Clearly there is pressure on Microsoft to come up with a long term profitable strategy for the Xbox 360 as both a game machine and an entertainment device. With a solid lead on the PlayStation 3, we do not see Microsoft rushing to get a new game system out the door. This means that for better or worse, the Xbox 360 is Microsoft’s play for the next few years.