"We're investing to win in Europe," the VP of strategic marketing and Live, David Gosen, explained.
"We can do better and we're incredibly well-placed to drive success in the region. We've got to make sure we tailor our resource needs to the games we are making."
He added: "We're going to invest in more ways than we have before." That includes more cash supporting Xbox Live Marketplace and Arcade content deals, he said, plus more money to support internal and external studios.
But Gosen's views differ with Sony's on one key point - which next-gen console will rule the generation.
"We're going to invest in this region to ensure we win," he said, leaving attendees to look at his last presentation slide, which bullishly proclaimed 'We WILL outsell the PlayStation 3'.