It's all about games

Microsoft of course had plenty of software and networking expertise, but not so much on the hardware side. The Xbox became the number 2 home gaming system behind the PS2, and with the launch of the XBox 360 more than a year before the Sony PS3, Microsoft made a real statement about their plans to compete and dominate in the home console systems. Microsoft also announced the highly anticipated rollout of the high-definition video store on Xbox LIVE Marketplace for customers around the globe. Microsoft will begin bringing content to living rooms in Europe and Canada by the end of this year. Microsoft also plan a movie-on-demand service which will be similar to the US Video Marketplace for Europe. The movie-on-demand service will let users download movies to their Xbox 360 hard drive.