Basking in the deathly red lit glory of the Xbox 360, Microsoft today announced that the console has now outsold its predecessor, meaning that it has sold over 25 million units since its launch in 2005.

“We’ve already surpassed the installed base of the original Xbox–which is a really significant milestone,” said Microsoft entertainment VP Chris Lewis. “We’re at a price point that is uniquely placed–not least of which because we’re in somewhat of a challenging economic time.”

Lewis added that the recent price drop gave the console the edge it needed over the PS3, noting that they have outrun the rival console “on a weekly run rate in all the territories we care about.”

So far, the Wii has sold over 35 million units worldwide, while the PS3 languishes with a lowly 17 million units.