Microsoft has confirmed that it failed to meet the 12 million shipment target it set for Xbox 360.

The sales for the period came in at 11.6 million Xbox 360s by June 30, 400,000 down on the estimate which itself was revised from an initial 13-15 million units.

However, Microsoft is upbeat about the upcoming Christmas period. Peter Moore, Microsoft Corporate VP, said, "On the state of the business, we feel really good about that".

"A lot of what we're going to talk about at E3 next week is about the games line-up, and we feel really good about our line-up, both first party and third party, and what we've got to offer this holiday. It is going to be a tremendous holiday. Hopefully, people will recognise and respect what we've done."