PC Pro has an article paraphrasing Chief Xbox officer Robbie Bach as saying he believes the Xbox 2 can beat out Sony's upcoming PlayStation 3, possibly even in the Japanese market.
More incredibly, and a measure of the collective confidence felt by the Xbox team at present, buoyed by XNA, Bach went as far as to suggest an outright win in the unforgiving Japanese market was on, though he acknowledged there was still a mountain to climb: 'Do I think we have the same possibility of winning [in Japan as in the US and Europe]? I suppose yes, but it's certainly going to be a hell of a lot harder.
The author of the article, Johnny Minkley, promises a full length interview soon.