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Xbox 360 will outsell Sony's PS3: Microsoft

Microsoft Corp said Monday its Xbox 360 console will sell better than Sony Corp'srival PlayStation 3 over the lifetime of the machines.

Microsoft also displayed a line-up of games to drive demand for the console, including "Gears of War 2," a much-anticipated sequel to its blockbuster science-fiction shooter game. It will debut exclusively for the Xbox 360 on Nov. 7.

The company is locked in a three-way competition with Nintendo Co Ltd's Wii and the PlayStation 3, which comes with a high-definition Blu-ray video player. The Wii is the current leader, while Sony's PS2 was the winner of the last generation of consoles.

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"Xbox 360 will sell more consoles worldwide this generation than PlayStation 3," Don Mattrick, a senior vice president at Microsoft's Xbox division, said at a Microsoft news conference before the start of the E3 video game industry trade show.

Microsoft said Sunday it will cut the price of its best-selling Xbox 360 Pro with a 20-gigabyte hard drive to $299 from $349 while supplies last. In early August, it will introduce a new model with a 60-gigabyte hard drive for $349.

A cut to $299 makes the Xbox 360 Pro $100 less than one of the console's major rivals, Sony's PlayStation 3 with a 40-gigabyte hard drive. Microsoft said the Xbox 360 has outsold the PS3 in the United States by 5 million units.

Microsoft said it signed a deal to make TV shows and movies from NBC Universal available on its Xbox Live online platform. The company said a third of all paid content downloaded in the U.S. is movies and television shows.

It also announced a tie-up with movie rental company Netflix Inc to let Netflix subscribers watch streamed movies and TV shows on Xbox 360 game consoles starting this fall.

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