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Politics : Formerly About Applied Materials

AMAT 259.21

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Dec 12 9:30 AM EST

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To: StanX Long who wrote (61638)	3/7/2002 3:23:02 AM
From: StanX Long	Read Replies (1) of 70976

Microsoft Recalls Xbox Game Consoles Sold in Japan (Update2) By Hiroshi Suzuki and Minoru Matsutani quote.bloomberg.com Tokyo, March 7 (Bloomberg) -- Microsoft Corp. is recalling the Xbox video-game console in Japan because of a defect two weeks after its debut in the country, setting back its first entry into the home turf of rivals Sony Corp. and Nintendo Co. Some of the 250,000 consoles shipped in Japan make scratches on the perimeter of a game disk, Microsoft Co., the Japanese unit of the world's biggest software maker, said. The recall comes a week before the console's debut in Europe on March 14. Xbox debuted in Japan on Feb. 22 with Microsoft Chairman Bill Gates distributing the first Japanese-version to a 22-year-old student, the first among hundreds of customers lined outside a video store in the center of Tokyo's Shibuya shopping district. The recall will hurt the company's attempt to wrest market share from Sony's PlayStation 2 and Nintendo's GameCube game consoles in their home market, investors said. ``Microsoft will have a tough time gaining customers in Japan in the short run,'' said Shuichi Hida, who helps manage 160 billion yen ($1.2 billion) in assets at Sanyo Investment Trust Management Co., which holds shares of Sony and Nintendo.

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