Microsoft's Broadband Gaming System Selling Early

Communications Today, Nov 25, 2002

Microsoft [MSFT] says it has virtually sold out its initial shipments of starter kits for its Xbox Live broadband gaming service in the first week of availability. About 150,000 of the $49.95 kits have been sold. The kit does not include a network adapter since the Xbox is already network-ready. Instead the kit includes a voice headset allowing communication with other players, trial versions of two online games and a one-year subscription to the service.

Unlike competing offerings from Sony [SNE] and Nintendo, Xbox Live carries a subscription fee, and is a broadband-only service with no dial-up access. Microsoft claims the launch has also boosted sales of online-capable Xbox games--by as much as 120 percent in the case of football game "NFL Fever 2003." Sales of Xbox consoles themselves experienced an 18 percent week-over-week rise concurrent with the launch. For more about this and other broadband industry-related news, read the latest edition of Communications Today's sister publication, Broadband Business Report. For subscription details, visit the "newsstand" at http://www.TelecomWeb.com.

[Copyright 2002 PBI Media, LLC. All rights reserved.]