SEATTLE (Reuters) - Microsoft Corp (>> Microsoft Corporation) said on Monday that sales of its new Xbox One game console topped three million at the end of last year after launching in November.

The third generation of the Xbox is competing head-to-head with Sony Corp's (>> SONY CORPORATION) PlayStation 4, also launched in November. Sony said it had sold 2.1 million PS4s by the first week of December.

It will not be clear which company is leading the console battle until Sony updates that figure.

The sales of the new Xbox are in line with expectations, said Michael Pachter, an analyst at Wedbush Securities, who also estimates PlayStation sales around the 3 million mark.

Hot sales of both consoles have been a boon for Advance Micro Devices Inc (>> Advanced Micro Devices, Inc.), which developed or supplied chips for both devices.

(Reporting by Bill Rigby and Malathi Nayak. Editing by Andre Grenon)