We are already seeing signs of some of their plans for Japan (introduction of Xbox 360 arcade, doubling of the Xbox 360's game library) so it'll be interesting to see what exactly they have planned for continental Europe.
http://blogs.zdnet.com/microsoft/?p=1149
"Microsoft CEO Steve Ballmer outlined Microsoft’s top eight growth targets during his annual “Strategic Update” for Wall Street analysts in New York on February 4. Ballmer repeated several times during the hour-long presentation that “growth will require investment.” He noted that his view of what constitutes “long term” is “five to seven to ten years” out — most likely a lot longer than the typical three-year timeframe typically envisioned by analysts and shareholders.
Ballmer’s top growth picks are almost identical to the ones he outlined during last year’s Strategic Update. On Ballmer’s 2008 list of arenas where Microsoft believes it can sustain three-quarters of a billion dollars or more in new margin growth:
...
7. Xbox: When Microsoft talks about hardware, it mostly is talking about Xbox. Ballmer said to watch for Microsoft to continue to push for broader Xbox acceptance in markets where it has been less popular, like continental Europe and Japan. Also watch for the company to do more outreach to non-classic gamers in order to continue to build Xbox market share."
