Now, some psychoanalysis on Microsoft executives would be quite entertaining ("Tell me about these lucid dreams, Peter."), especially when compared to the recent observations made by Colin Sebastian of Lazard Capital Markets. In his earth-shattering report, Mr. Sebastian describes the folks behind the Xbox brand as "upbeat" given the commercial success of Gears of War, the company's considerable launch lead against competitors and consistent growth in Europe. Japan, not so much.
The Xbox 360's 2007 lineup (featuring Space Ring 3) and catalogue of HD shows and movies are also expected to have a positive effect on this year's holiday sales. Sebastian believes that fleeting Wii and PS3 stock will prove to be Microsoft's greatest advantage, with desperate parents picking up a 360 and convincing their rotten brats that it was the only console they could find. It's a likely scenario, but if recent sales in Japan have proven anything, it's that the PS2 and DS Lite are far more likely (and cheaper) replacements -- if indeed a replacement is sought at all. How about a nice fruitcake instead?