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Strategies & Market Trends : Guidance and Visibility
AAPL 274.11-1.5%Dec 15 3:59 PM EST

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To: 2MAR$ who started this subject12/19/2002 4:16:28 PM
From: Teri Garner  Read Replies (1) of 208838
 
Xbox November Console Sales Hit Record Highs for 2002
(PR Newswire 12/19 13:15:19)

Strong Game Portfolio and Xbox Live Launch Fuel Growth

REDMOND, Wash., Dec. 19 /PRNewswire-FirstCall/ -- As Santa's elves hustle
to pack his sleigh in preparation for next week's delivery of holiday loot,
it's clear that the Xbox(TM) video game system has topped the wish lists of
video game enthusiasts worldwide. According to NPD Group Inc. data (NPD
Funworld TRSTS November 2002), Xbox achieved its best month of the year for
console sales in November. Data released today by Microsoft Corp. confirms
that from Seattle to Singapore, Austin to Auckland and Detroit to Dublin,
demand for Xbox has reached a fever pitch this holiday, widening the gap
between Xbox and rival Nintendo GameCube while demonstrating that Xbox
delivers a superior gaming alternative to Sony PlayStation 2.
(Photo: newscom.com )
According to market research firm NPD Group, a record number of Xbox
systems flew off store shelves in November. Fueled by the recent launch of
Xbox Live(TM), a game portfolio boasting 200 titles and a special holiday
offering, sales for November nearly doubled the previous month's volume.
November marked the seventh consecutive month in which Xbox console
sell-through outpaced that of Nintendo GameCube.
A distinct winner among shoppers has been the Xbox Holiday Offer, a
specially priced and packaged system complete with the Xbox console, Xbox
Controller S and two of the best Xbox-exclusive games from Sega, "Sega GT
2002" and "Jet Set Radio Future." In the first two months of availability, the
Xbox Holiday Offer outsold Nintendo's GameCube/Mario offering by 131 percent.*
Individual Xbox game titles also have been selling at a breakneck pace
this holiday season. In November, shoppers snatched up more than 2.4 million
Xbox games, making it the second-highest software sales month since the
platform was introduced. Overall, Xbox has sold 34 percent more games than
Nintendo since either console was introduced. "Tom Clancy's Splinter Cell," a
wildly popular Xbox exclusive from developer Ubi Soft Entertainment, tops the
bestseller list, with nearly a quarter million units sold worldwide in just
the last two weeks of November.
"Sales figures confirm that 'Splinter Cell' on Xbox is at the top of every
gamer's wish list this holiday season," said Tony Kee, vice president of
marketing for Ubi Soft Entertainment. "There has never been a game that uses
lighting, shadows and stealth better than 'Splinter Cell,' and the power of
Xbox helps make that possible. You can see it in magazines, newspapers and
broadcast reports that the consensus is 'Splinter Cell' is the best-looking
and -playing game on the market, and it is only on Xbox this holiday."
Perhaps most telling is the dazzling success of the Xbox Live service,
which allows Xbox gamers in different locations to play against each other
using a broadband connection. Launched just last month in the United States,
the Xbox Live Starter Kits have exceeded sales expectations, eclipsing by
86 percent the number of PlayStation 2 Network Adapters Sony sold in their
first month of availability. Titles such as "MechAssault(TM)," "Tom Clancy's
Ghost Recon" and "Unreal Championship" are proving to be immensely popular
with the Xbox Live crowd, with combined sales of more than 300,000 units in
the United States in November. These top three Xbox Live titles attached at
over 80 percent to the Xbox Live Starter Kit.
"All this data points to the fact that Xbox is well on the way to being a
market leader," said Robbie Bach, chief Xbox officer. "With solid support from
leading developers, more than 300 games in development, 200 games available
for this holiday and many big titles planned for 2003, it is not surprising
that Xbox is at the top of wish lists on several continents."
Holiday highlights for Xbox from around the world include the following:

Europe

-- Sales of the Xbox holiday offering have catapulted Xbox into the No. 2
spot across the continent. (Source: ChartTrack & GfK)
-- In the United Kingdom, the largest video game market in Europe, Xbox is
consistently outselling GameCube by more than two to one this holiday.
(Source: ChartTrack)
-- The Xbox Live Consumer Beta and Test Drive program have been a great
success, and momentum continues to build for the European retail
launch, which is on track for March 14, 2003.

Australia

-- The sales gap between Xbox and Sony PlayStation 2 last week narrowed to
only 4 percent (source: Inform) as Christmas shoppers made Xbox the
home entertainment gift of choice.
-- Xbox weekly market share doubled to 46 percent over the past eight
weeks. In the last two weeks of November alone, gift-givers Down Under
grabbed more than 23,000 Xbox units. (Source: Inform)

Asia

-- Xbox launched in Hong Kong, Singapore and Taiwan last month and is now
available at more than 230 select retail outlets throughout the region.
Xbox will be available in Korea Dec. 23.
-- At an Xbox launch event in Singapore Nov. 21, more than 5,000 people
lined up to buy Xbox systems before the event stocks sold out. At a
similar event the next day in Hong Kong, shoppers cleaned out the
initial stock in just three hours.
-- New Xbox games are arriving in Asia every week. Plans call for up to
50 new games from Microsoft and other leading game publishers.

Japan

-- Holiday sales are going well with competitive holiday offers available
to consumers throughout Japan.
-- There are more than 75 titles available for Xbox in Japan during this
holiday season. New holiday titles include "Shin Megami Tensei Nine,"
"Panzer Dragoon(TM)" and "O-TO-GI," "Blinx(TM): The Time Sweeper(TM)"
and "Kakuto Chojin(TM)."
-- A consumer beta of Xbox Live is successfully underway to 5,000 gamers.
Xbox Live is set to launch Jan. 16, 2003, with Sega's "Phantasy Star
Online Episode I and II" and other exciting launch titles.

Mexico

-- The first launch of a video game platform in Mexico kicked off very
successfully. Xbox officially launched in October and is the
next-generation console most widely available at Mexican retail
(718 outlets).

About Xbox
Xbox ( xbox.com ) is Microsoft's future-generation video game
system that delivers the most powerful games experiences ever. Xbox empowers
game artists by giving them the technology to fulfill their creative visions
as never before, creating games that blur the lines between fantasy and
reality. Xbox is now available in North America, Japan, Europe and Australia.

About Microsoft
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and Internet technologies for personal and business
computing. The company offers a wide range of products and services designed
to empower people through great software -- any time, any place and on any
device.

* NPD Funworld TRSTS November 2002

NOTE: Microsoft, Xbox, Xbox Live, MechAssault, Blinx, The Time Sweeper
and Kakuto Chojin are either registered trademarks or trademarks of Microsoft
Corp. in the United States and/or other countries.
The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.

MAKE YOUR OPINION COUNT - Click Here
tbutton.prnewswire.com

SOURCE Microsoft Corp.
-0- 12/19/2002
/NOTE TO EDITORS: If you are interested in viewing additional information
on Microsoft, please visit the Microsoft(R) Web page at
microsoft.com on Microsoft's corporate information
pages. Web links, telephone numbers and titles were correct at time of
publication, but may since have changed. For additional assistance,
journalists and analysts may contact Microsoft's Rapid Response Team or other
appropriate contacts listed at
microsoft.com ./
/CONTACT: Maureen Farley, +1-206-268-2270, or maureen.farley@edelman.com,
or Tara Ward, +1-206-268-2222, or tara.ward@edelman.com, both of Edelman, for
Microsoft Corp./
/Photo: NewsCom: newscom.com
AP Archive: photoarchive.ap.org
PRN Photo Desk, 1-888-776-6555 or +1-212-782-2840/
/Web site: xbox.com /
/Web site: microsoft.com /
(MSFT)

CO: Microsoft Corp.; NPD Group Inc.
ST: Washington
IN: CPR MLM STW ENT CSE
SU: SVY SLS

S.PN MSFT
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