Xbox revamp hits Europe in summer
Xbox 360 elite
A revamped Xbox 360, designed to store and display high-definition video, will go on sale in Europe on 24 August.
The black Elite console has a 120GB hard drive and outputs high definition video through a digital connection.
Microsoft's Shane Kim said he did not think recent reports of faulty Xbox 360s would damage future sales.
Speaking ahead of the E3 games show, he added there were no plans for an Xbox 360 price cut, saying they were "very comfortable with the price".
"We are selling the Elite console as fast as we can make them," he said of the black Xbox 360, but was unable to give specific sales figures.
He said Microsoft felt no need to reduce prices in light of Sony's cut of $100 (£50) from the cost of the 60GB PS3.
"Since our rivals launched last year, in the US we are neck and neck with the Wii and we are just about double the sales of PlayStation 3," he added.
Mr Kim, Microsoft's corporate vice president of Microsoft Game Studios, said
"We really feel like we are driving the next generation console market," he said.
Mr Kim assured consumers that the firm had taken steps to resolve concerns over many Xbox 360s being returned because of faults.
The firm has set aside more than $1bn (£500m) to cover the cost of offering extended warranties.
"It's been somewhat positive because we had been able to remove people's concerns and show that we are standing behind the product”, he said.
A Microsoft press conference in Santa Monica highlighted some of the key titles being launched on Xbox 360 this year, including Halo 3 and Grand Theft Auto IV.