Microsoft spends big on casual marketing

In the US, the new 'Live Your Moment' campaign is set to "saturate the airwaves" according to a report in the Seattle Times, with ads appearing in between female- and family-friendly TV shows like drama Grey's Anatomy and Dancing With the Stars with plenty of billboards, print and online marketing too.

Microsoft is spending more on the campaign than it did for the launches of the 360, its predecessor the Xbox and headline, but hardcore, title Halo 3.

The format-holder recently slashed the prices of its hardware, undercutting both Sony's PlayStation 3 and the domineering Nintendo Wii.

Microsoft is also readying a number of games designed to attract wider audiences, including singing game Lips, more Scene It quiz games and camera-based actioner You're In The Movies.

It's presumed these games, plus the soon to be relaunched Xbox 360 interface, itself revamped to make the machine more accessible to average consumers, and online service Live will be spotlighted in the ads.

Microsoft also plans to spend big on promoting Windows this year, reportedly readying a $300m spend to raise the profile of its Vista operating system.