Santa was very happy with Microsoft this Christmas season

Facing a tough battle as an underdog to the worldwide leading Nintendo Wii and a resurgent Sony PS3, Microsoft is jubilant to report that it experienced very solid holiday sales.  The company has had a tough time despite strong titles such as the best selling Halo 3 and Mass Effect

Part of its problem is that the Nintendo Wii had some hits of its own with titles such as Mario Galaxy and Metroid Prime Corruption offering a more parent-friendly image.  Microsoft responded by releasing the Xbox 360 Arcarde, which hoped to win over more of the younglings.

In the end it appears that Microsoft's strong library, in particular Halo 3, and its aggressive marketing carried it to a big holiday season.  The company announced that in the last three months of 2007, it sold a total of 4.3 million consoles worldwide, bringing its worldwide tally to 17.7 million.

Halo 3 blew through sales records like Master Chief through a pack of angry Convenant, racking up a record setting 8.1 million units sold since its September release.  Mass Effect also reported strong sales, moving 1.6 million units in about a month since its late November release.

Nintendo and Sony have not yet released sales figures for the holiday season, so it is too early to know the true victor.  However, Microsoft can't feel too bad regardless of the outcome as it is building a strong user base.

Microsoft made the announcement in part to help build buzz around its CES 2008 presentations next week in Las Vegas.  Microsoft is among the many companies demoing products at CES 2008, which DailyTech will be reporting live from.  

Microsoft Chairman and founder Bill Gates is set to personally unveil information on the future of the Xbox 360 and various other Microsoft products at the show.  Stay tuned for more details.

"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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