Xbox business unaffected by economic slump - Bach

Strong Christmas sales expected for Entertainment and Devices division

Microsoft's Entertainment and Devices division has not been affected by the slumping US economy, according to exec Robbie Bach.

The division is responsible for the Xbox 360 business, along with the Zune, Windows Mobile and other computing peripherals.

"We have not seen, on the consumer side of our business, a slowdown," said Bach, reports Reuters.

Bach said that the videogame and computer business follows a cycle initiated by new releases, not economic cycles, and that he expects the Xbox business to see continued success through the Christmas season.

He also talked up the Zune portable player, suggesting that with time it will be able to challenge Apple's iPod as it incorporates more elements from the Entertainment and Devices division.

"Apple has an advantage of strong market share position and that's a challenge for us," said Bach. "The value of Zune over time will transcend across everything we do in Entertainment and Devices."

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