Microsoft's CEO Steve Ballmer has stated that the Xbox 360 isn't a gaming console – and that's what helps differentiate it from its competition. 

In recent years Microsoft has been repositioning the Xbox 360 to appeal to a broader market than the core gamers that the console had traditionally wooed, and Ballmer's comments reiterated this movement. 

"Xbox isn't a gaming console," Ballmer told USA Today, "Xbox is a family entertainment center. It's a place to socialize. It's a place to watch TV. We have Hulu coming. It's the only system where you are the controller. Your voice, your gestures, your body." 

Ballmer's comments echo those of ex-Sony Computer Entertainment head Ken Kutaragi at the dawn of the PlayStation 3. "From the start, we intended to make not just a game machine for kids, but a computer for entertainment that adults throughout the world could enjoy," Kutaragi said back in 2005. "Other companies may talk of game machines, but we've always referred to 'computer entertainment,' even in our press materials. It's entertainment and also a computer. That's what's important." 

Ballmer also highlighted the success of Kinect in helping Microsoft broaden the Xbox 360's appeal. "My wife used to say, 'No, no, that's the machine the boys use," and now she says, "Yeah, I want to go watch movies. Let's go play the dance game,'" he said. "It opens up accessibility to family entertainment because with the Kinect, you control these systems with your body, with your voice. We've opened up the world of content in TV, movies." 

source: http://au.xbox360.ign.com/articles/114/1144275p1.html

Well thats an bold statement. MS should correct this because they risk in Alienating there Core User base that has bought them around 45 million xbox's out of those 50 million.

Does this mean that MS sole focus with the xbox is Nintendo's market. This could back fire with some of those core audience defecting to SONY which could affect software sales on the 360 and boost ps3 sales.

Maybe this has to be the reason why there hasn't been many core 360 exclusives announced for the first half of the year other than kinect titles and downloadable ones. 

No its a....*sees mod looking at him*...great console :D

still a gaming console to me even though it has been collecting dust lately.

Forgive me if I am wrong, but didn't Microsoft criticize SONY for saying the same exact thing earlier in the generation?

Trying to find it now but I am sure they said something along the lines of "It causes confusion amongst the userbase as well as potential buyers".

No, everyone criticized everyone when it was suggested that the Wii was not a games console.

OT:

Of course not. It's clearly some kind of board game.

I guess Kutaragi had it right the entire time.

And they mocked me when I wore my Xbox 360 like a boot.  Well look who just got the last laugh!

I'm confused lol.

I remember back then MS was focused on calling the 360 a "gaming console" and SONY was touting about the PS3 being a "total entertainment center" and Microsoft then criticized them for it.

Just like they did with HDMI, High-Def media, Wireless, etc...

Does that mean that the ps3 beat the 360 in the console wars by default?

Alienating their core userbase? Are you fricken jokin'? The sluts who buy multiple consoles and complain about exclusives don't matter to them because they can treat them like crap but they know they'll get some regardless. The core are the single console userbase who aren't whores and buy from the whole range of 1st and 3rd party content, they are for the most part more than satisfied.

Is it even possible for a company like Microsoft to have a 'sole focus'? Anyway they've answered your question  already and thats 'no'. Its kind of obvious really to NOT ignore a large proportion of your game buying population, obviously.