/ 1 January 2002

Battle lines drawn in war of Japanese game market

Microsoft said on Tuesday its Xbox video console aims to win the number one slot in the Japanese computer game market, dominated by mighty rival Sony Corp’s PlayStation2 (PS2).

”Microsoft is very tenacious. We will not give up until we achieve the number one position,” said Hirohisa Oura, managing director and head of Microsoft Japan’s Xbox division.

”The word ‘defeat’ does not exist in Microsoft’s dictionary,” Oura said at a news conference to unveil a new lineup of game titles for the console — the first venture into the gaming market by the US computer software giant.

By the end of this year, Xbox plans to offer more than 80 game software titles in Japan, he said. PlayStation2, for its part, has 501 game titles.

Xbox was originally priced at 34 800 yen ($280), but just three months after its Japan-launch on February 22, Microsoft slashed the price to 24 800 yen.

Oura admitted the original price created a ”big hurdle” for Microsoft but said the company is now confident Xbox can easily compete against Sony’s PlayStation2.

”Since the February 22 launch, we had to overcome many things… finally, we are in the same field,” he said.

Sony’s PS2 costs 29 800 yen, down from its initial price of 39 800 yen.

Microsoft said it would start an Xbox online game service known as ”Xbox Live” in the United States, Europe and Japan later in the year.

”With the Xbox Live service, we want to boost our sales to a really high level,” Oura said, adding Microsoft would provide 47 game titles for the service.

By the end of June, Microsoft said its worldwide Xbox shipments would reach 3,5-4 million units. Oura declined to give Japanese sales figures. – Sapa-AFP