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Adding credence to this claim is the fact that Microsoft didn't say, in their aforementioned press release detailing Xbox 360's performance, that it sold more software. This is what it said: "NPD data released today confirms consumers spent more dollars on Xbox 360 in 2007, with more than $13.7 billion in total consumer spending."
That sounds really awesome, until you break down what they're actually saying: "Our stuff is really expensive."
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Exactly what I thought when I read that. They got some master spin doctors at Microsoft.