Microsoft's has dismissed any notion that the will suffer from its lack of drive.

In an interview with Edge, Greenberg pointed out that is entirely devoted to the 360 becoming a digital delivery platform.

"For us, our bet was on digital distribution, that that was the future," said Greenberg. "The ability to do 1080p with no disc, no download required; we have the largest and TV library, the largest HD library of any console."

He continued: "Sure, there are trade-offs, but the convenience of pushing a button and watching a movie instantly is, we think, pretty appealing. The great thing is that we built the heart of the 360 for continuous innovation. We can always add more features and functionality, and you don't have to buy new to do that. You can do it through software updates."

The success of the new updates to the Xbox Dashboard are already a testament to early successes for this strategy.

Greenberg finished off by saying: "Someone who buys a 360 today can know that one, two, or three years from now they will get a whole variety of new experiences that make it better through Xbox Live. That sort of thing has never existed before in our industry."

By Ewan Aiton