With stellar sales of both Halo 2 and Fable, Microsoft Game Studios is on top of the world and the success only seems to be getting started. Recently we sat down with Shane Kim, Managing Director of Microsoft Game Studios, and Ken Lobb, Studio Director of Microsoft's Studio RX, to talk about what's in store for the Xbox And if anything they said struck home, it's that there's still plenty of life left in the Xbox.

Game Informer: So, how’s the game business been going for Microsoft Game Studios? Did the holiday season treat you well?

Shane Kim: We’ve been really happy so far. You look at all the aspects of what we’re doing across the entire Xbox platform and I think that we’re firing on all cylinders. The console itself continues to have tremendous progress. And, we won the holiday period in the US, with a share of 40 percent in November and December, which is really huge for us. So the console is doing great and Xbox Live is doing great. We’ve got 1.4 million subscribers and we’ve increased our expected fiscal year results to be around 1.6 to 1.8 million. I’m especially proud of what’s been going on in Microsoft Game Studios. We had a great start to the end of last year with Fable, and that’s been a phenomenal success for us. And, of course, Halo 2 came out on November 9th and I think it’s pretty hard to put into words what that’s meant. We’ve sold over 6 million copies worldwide and it’s driven over 91 million hours of play on Xbox Live, as well as contributed in making the home and entertainment division profitable. All of the different aspects of the program are working really, really well.