Microsoft has announced that the Xbox 360 has recorded its biggest year yet, with more consoles, games and online entertainment being sold than any previous years.

Microsoft also announced that 28 million Xbox 360’s have now been sold worldwide, boasting that the Xbox 360 is now ahead of the PS3 by over 8 million units. This helped to grow the Xbox Live Community to over 17 million and increase online consumer spending during 2007 by a massive 84% - something which the publisher attributes to the New Xbox Experience as well as a broad selection of games, TV shows and movies as well as the price of the 360.

The press release went on to share that over $1 billion has been spent on Xbox Live since the Xbox 360 launched three years ago. Apparently the Xbox 360 is selling well around the world, with market shares in Japan and Europe nearly doubling. Over 8 million Xbox 360s have been sold in Europe, the Middle East and Africa, giving the 360 a significant lead over the PS3 – 1 million units ahead to be exact.

Xbox Live experienced its busiest week ever between Christmas and New Year, with over 1.5 million concurrent members online. The most popular arcade game during that week was A Kingdom for Keflings, followed by Castle Crashers, Super Street Fighter II Turbo HD Remix, Puzzle Arcade and Worms.

Popular game add-ons included Rock Band, Guitar Hero, Halo 3, Gears of War 2 and Call of Duty 4. The most popular movie during that week was The Dark Knight, followed by Harold and Kumar Escape from Guantanamo Bay, Hellboy II: The Golden Army and Iron Man.

Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft commented “For Xbox, 2008 will be remembered around the world as a pivotal growth year at retail and online — even in the face of tough economic conditions. Worldwide, a record number of players flocked to our broadest games and entertainment lineup ever, while the New Xbox Experience thrilled millions of fans by making our console even more engaging. And yet, we’ve only provided a glimpse into the new world of interactive entertainment that we’re imagining. The best of Xbox 360 is yet to come.”