Microsoft has claimed it has sold over 28 million Xbox 360 units since launch in November 2005.
The latest numbers from the company come after it revealed it enjoyed its biggest Christmas in Europe, bringing lifetime-to-date numbers in the region to eight million.
"We're widening our lead against PlayStation 3," Aaron Greenberg, director of product marketing, told the LA Times.
According to the report, Sony has sold around 20 million PlayStation 3's globally, while last quarter, Microsoft was leading its rival by five million consoles.
Sales of online content via the Xbox Live service jumped 84 per cent in 2008 compared to the previous year, said Microsoft, as more users opted for digital content including Netflix films, games and TV shows.
Greenberg said that consumers have now spent over USD 1 billion on Xbox Live content and services.
"It's a huge part of our business. And it's a quickly growing portion or our business," he offered.