Microsoft's Don Mattrick

I think we heard Sony talk about a ten-year cycle and Nintendo talk about a longer cycle. We've just provided an amazing new experience through the new Xbox software update, so I think these boxes are incredibly powerful, and I think consumers - consumers care about value and innovation, that's what they care about - so I think there's a lot of room to grow our business.

We just announced a transition from 20GB hard disk to a 60GB hard disk at the same price point, so 3x the storage, no incremental cost. That's kind of the beauty of the tech curves - as time goes by, the cost of components decreases and you can bring more value to consumers in the example of the 20-60GB that we spoke about. So there's a lot of room for growth, industry's at record levels.

At the same time, we're going to think about new things all the time - that's my job, right? My job is to have an opinion on what's great in hardware, what's great in software, what's great in services, what's great in relation to Games for Windows, what's great in relation to mobile - all forms of entertainment.

So we're always looking at things, we're always thinking about things, but where we are doing a fabulous job is executing on our Xbox 360 programme.

It's a broader discussion. Last time I looked, there's 97,000 titles on DVD. It accounts for 99 percent of the volume of that business. There's high-definition TV, there's up-res DVDs right now, so I kind of wonder if this format wars is a bit of a Trojan Horse.

I think that what people want is digital high-def content, I think that's what our box provides, and we've announced several movie partners - and one in particular, Netflix, for the streaming technology. People love being able to download and interact instantaneously with high-def content. I don't have to go somewhere, I don't have to buy a disc, I don't have to pay a 12-14 dollar or 6-7 pound premium to do that. I don't have to have my face be two feet in front of my TV to see the difference.

Last time I looked at my living room, I was more than 8 or 10 feet away from my big-screen TV and the most recent demos I saw, it was someone in the industry - and I won't name who, because they would be so embarrassed - but they were showing a bunch of us Blu-ray and the person said, "You're sitting too far back to notice the different, get closer." I was like, okay!

When you put it all through, it's an interesting PR war that Sony's fighting with that front. I'm not convinced it's going to be a driver of sales. I think it's going to take a long time to get to even 10 percent of DVD volume, and I think consumers are going to say, "interesting format", there's going to be some early adopters of it who are going to think it's important, and there's going to be a bunch of people who say, "You know what? I'm quite happy with what I've got on DVD, I'm quite happy with my movie library, I'm quite happy not paying 6-7 pounds incremental per movie, I'm quite aware that I watch a movie once, maybe twice, but it doesn't have the same utility as games," and I think high-def and digital are more interesting forces of change in our space than the format of storage.

Yeah! [Shouting] Yeah! How good is that? No come on, let me put you on the spot: who won? Who won? Who did the best show?

At E3. Who won at E3?

Let's just get that in print, because that's what I want to see, alright? So we got the thumbs up, Eurogamer said, "Microsoft had the best conference, we delivered the most news, we showed real stuff"--

We talked about worldwide, and again we've a pretty substantial lead right now. We know what we're going to be bringing to market, and as you and I get more years together talking about this stuff, you'll see that I tend to be very thoughtful on what I say, and I tend to let results speak for themselves. This was just a point of clarification, because for me it was just so painfully obvious, someone in the industry needed to say it.

It's so boring, right? I'm a businessman, I think that's going to happen, I did the math, I did the math a different way, I did the math...there was no equation that I came to where I got a different answer, and I went, "You know what? This is getting boring." Like, instead of everyone standing on the sidelines trying to hedge, I'm just going to say it. So hopefully people will appreciate that and that's what I think you do when you're leading a company.