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"Xbox Live is going gangbusters," says Ballmer

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Microsoft super-boss Steve Ballmer reckons Xbox Live is doing the business for the firm, and that Xbox in general is a "home run."

"If you ask me, Xbox Live is going gangbusters," he told the Mercury News. "The console is selling well."

Ballmer added: "I certainly would say the work that we've done around Xbox is an unqualified success. No question about that. The product is selling very well. The Xbox is an absolute home run."

The exec responded incredulously to the question that recent Xbox 360 price-cutting was the result of levelling hardware sales.

"That's the craziest thing I've ever heard anybody say," he said. "All consoles start at higher prices. They always come down through the long cycle."

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