Microsoft expects you to buy a Nintendo Wii! (... in addition to an Xbox 360)
"Tell me why you would buy a $600 PS3?" Peter Moore, a Microsoft vice president, said in an interview. "People are going to buy two (machines.) They're going to buy an Xbox and they're going to buy a Wii ... for the price of one PS3."
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"People will always gravitate toward a competitively priced product -- like what I believe Wii will be -- with innovative new designs and great intellectual property like Mario, Zelda and Metroid," Moore told Reuters. (Washington Post)
Now all Moore needs to explain is why you would buy an Xbox 360. ;)
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