REDMOND, Wash. -- Dec. 28, 2001

Unprecedented Developer Support Ensures Great Selection for Gamers

"We're ecstatic about the support we're seeing for Xbox," said Robbie Bach, chief Xbox officer at Microsoft. "Since day one, game developers have been excited about how easy it is to bring their creative visions to life on Xbox. Now the gamers are the ones benefiting, with a great choice of great games in all the key categories."

Recent additions to the Xbox portfolio include "Max Payne" from Take-Two Interactive Software Inc.; "NHL® 2002" from Electronic Arts; "Star Wars® Obi-Wan (TM) " from LucasArts Entertainment Company LLC; and "Azurik (TM) : Rise of Perathia" and "Nightcaster (TM) " from Microsoft® Game Studios. They join such games as Microsoft Game Studios' "Halo (TM) " and "Project Gotham Racing (TM) " and Tecmo Inc.'s "Dead or Alive 3 (TM) ," which have been among the best-selling games this holiday season.

"Our stated goal was to deliver 30 titles by the holiday season," Bach said. "We're happy to be able to exceed that goal. But then, gamers around North America who have purchased an Xbox have been telling us that it has exceeded their expectations in every way."

The games will keep on coming in 2002. The first quarter of the year is scheduled to offer many new games, including such anticipated titles as these:

• January:
• "NBA Inside Drive 2002" (Microsoft Game Studios)
• "Blood Wake (TM) " (Microsoft Game Studios)
• "Genma Onimusha" (Capcom)
• February:
• "WRECKLESS: The Yakuza Missions" (Activision Inc.)
• "JSRF -- Jet Set Radio Future" (Sega of America)
• "WWF Raw" (THQ)
• March:
• "Tony Hawk's Pro Skater 3" (Activision)
• "Blood Omen 2" (Eidos Interactive Ltd.)
• "James Bond 007 -- Agent Under Fire" (EA)
• "GUNVALKYRIE" (Sega)

Microsoft is shipping more than 100,000 units per week to North American retailers through the end of year, putting the system on target for Microsoft's goal of delivering between 1 million and 1.5 million units for 2001. Xbox is the only system being manufactured in proximity to U.S. retailers, accelerating the manufacturer-to-retailer cycle.

About Xbox

Xbox 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 at the estimated retail price of $299.99.* More information on Xbox can be found at http://www.xbox.com/ .

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.

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.

* Actual retail prices may vary.

Microsoft, Xbox, Azurik, Nightcaster, Halo, Project Gotham Racing and Blood Wake are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.