He was demonstrating Xbox 360 to delegates at this week's UBS Global Media Conference in New York. During an hour-long speech he progressed through the usual demo of Live, Arcade and the machine's connectivity. He then said, "If Sony does hit the specs which they've said they'll have there's a debate. There are a couple of categories where they outdo us, and there's several categories where we outdo them."

He added, "On balance I think most people who study the space will tell you our system is slightly more powerful than theirs from a hardware standpoint. But for the purposes of this discussion I think it's fair to say they're both Ferraris"