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Microsoft's senior vice president for Interactive Entertainment Business Yusuf Medhi believes that by the end of the next generation, the industry will have a combined sales total of 1 billion consoles (which includes the three dominant consoles, Xbox One, PS4, and Wii U,) due to the increasing capabilities of consoles as all around entertainment systems that he believes will increase their market.
"Every generation, as you've probably heard, has grown approximately 30%," he tells OXM. "So this generation is about 300 million units. Most industry experts think the next generation will get upwards of about 400 million units. That's if it's a game console, over the next decade. We think you can go broader than a game console, that's our aim, and you can go from 400 million to potentially upwards of a billion units. That's how we're thinking of the Xbox opportunity as we go forward."
Additionally, Medhi tells OXM that the Xbox 360 has not reached the end of its life span. Microsoft intends to sell 25 million more units of the previous generation console. "We believe over the next five years we can break a 100 million unit installed base," he says.
"The way we'll break into those segments is by hitting new price points, getting new classes of entertainment to come with the Xbox, and breaking into new customer segments. So you'll see the Xbox 360 continue to exist, even as we launch the next generation Xbox One."
At E3, Microsoft will be revealing 15 new games for the Xbox One, 8 of which will be new franchises. They will also be announcing their future plans for the Xbox 360, which they hope will generate sales.