That’s the word from Microsoft’s CFO of Entertainment & Devices Division, Mindy Mount, who claimed; “By the end of this month, we expect our global installed base to reach 25 million units, surpassing that of the first Xbox.”

We don’t doubt it, with the console now going into its fourth Christmas period and still selling strongly. Indeed, Mount suggested that this milestone is only the beginning, while explaining that research shows more than a quarter of a console’s sales occur after the price drops to $199 or lower.

The Xbox Arcade is currently retailing at that exact price, following price drops across all of the Xbox units, from the standard version to the Elite. This price drop has reportedly accounted for a sales increase of 42% in the US, 62% in Europe and a massive 500% in Japan.

As for the upcoming Christmas period, Mount said “We have a lot of reasons to be cautiously optimistic” while adding that, while Fable II and Gears of War 2 will continue to be strong sellers during the holiday, she reckons You’re in the Movies could be a ‘sleeper hit,’ especially amongst teens and women.