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Microsoft Unveils Xbox Live Heralding the Next Frontier in Video Games

   MICROSOFT LOGO
Microsoft company logo. (PRNewsFoto)[PM]
REDMOND, WA USA
    LOS ANGELES, May 20 /PRNewswire-FirstCall/ -- Today at the Electronic
Entertainment Expo (E3), Microsoft Corp. (Nasdaq: MSFT) became the first video
game company ever to announce a comprehensive online game service fully
dedicated to fast-action, always-connected broadband gaming experiences. The
online console gaming service, named Xbox(TM) Live, launches in North America,
Japan and Europe this fall for the Xbox video game system and ramps up with
consumer beta programs starting this summer.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
    Xbox Live will enable all gamers to find their friends easily; talk to
other players during game play through the Xbox Communicator headset; download
current statistics, new levels and characters to their Xbox hard drive; and
play online.
    "Online technology is the next revolution in video games, and it will
fundamentally transform gaming into a new form of social entertainment," said
J Allard, general manager of Xbox at Microsoft. "Together with our partners we
will combine exceptional gaming experiences, a world-class service and a
viable business model so all parts of the online ecosystem thrive."
    Jump-starting the online title announcements, Allard said Xbox Live will
support five Xbox Live-exclusive games this year:  "Unreal Championship"
(Infogrames); and "MechAssault(TM)," "Whacked!(TM)," "NFL Fever 2003" and
"Midtown Madness(R) 3" (Microsoft Game Studios).
    To date, 60 game companies have committed to create games for Xbox Live,
and at least 50 Xbox Live-enabled games are planned to release by the end of
next year. Some upcoming Xbox Live titles include "Shaun Palmer's Pro
Snowboarder(TM) 2" from Activision, Inc.; "Tom Clancy's Ghost Recon(TM)," "Tom
Clancy's Rainbow Six(TM) RavenShield(TM)" and "XIII" from Ubi Soft; and "SEGA
Sports(TM) NFL 2K3," "SEGA Sports(TM) NBA 2K3" and "Phantasy Star(TM) Online"
from SEGA(R) of America, Inc.
    As the grand finale to the Xbox Live unveiling, Allard announced a lineup
of games in the works for the future of the service, including "Star Wars(R)
Galaxies(TM)" (LucasArts Entertainment Company), "Counterstrike" (Valve
Software for Microsoft Game Studios), and future versions of Xbox original
blockbusters like "Halo(TM)," "RalliSport Challenge," "Amped(TM)" and "Project
Gotham Racing(TM)."
    With the service approach, Xbox Live is poised to deliver the most
seamless, easy-to-use and consistent online gaming environment for gamers,
developers and publishers alike. It was designed by gamers for gamers and
includes features such as delivery of real-time scores and statistics so
gamers can compare themselves to the best players in the world; quick and easy
game launches; fast downloads; the ability to find friends online across games
with only one click; and the ability to maintain a single identity across all
games with a single password.
    Microsoft is building four datacenters -- in Seattle and Tukwila, Wash.,
Tokyo and London -- in order to run a scalable, secure and gamer-friendly
service. Xbox will assist publishers by managing the hosting, networking,
security and billing so that game creators can focus on creating awesome game
content.
    Key, consistent features of the Xbox Live service across games include the
following:

    -- Gamertag. Gamertag is a gamer's unique online ID for all games across
       the global gaming service.
    -- Friends list. This feature allows gamers to find friends online and
       invite them to a game -- no matter which Xbox Live game they're
       playing.
    -- Xbox Communicator. Voice communication is integrated with all Xbox Live
       multiplayer games and enables voice interaction with teammates and
       opponents. Key elements of this feature exclusive to Xbox include voice
       masking, global muting and parental control.
    -- Matchmaking. QuickMatch enables players to enter a multiplay experience
       with a single button-click, and OptiMatch, an Xbox Live exclusive,
       helps them select games and opponents based on similar skill levels.
    -- High-speed content downloads to the Xbox hard disk. Only Xbox offers
       console gamers the ability to download and permanently store both free
       and for-a-fee content that can include new levels, characters, missions
       and statistics.

    Allard painted a bullish picture for the future of online console gaming
and the promise of Xbox to lead the category. "Within five years every
important game will be online," he said. "There will be new categories of
collaborative and competitive console games that are possible only online. The
ability to download new worlds, levels, characters, weapons, vehicles, teams,
statistics and missions will change the way developers think about creating
games, and will change the way gamers play them."
    At launch, U.S. consumers can purchase a starter kit for $49.95.* For the
estimated retail price of a single game, the consumer receives a year's
subscription to Xbox Live, an Xbox Communicator that plugs into the Xbox
controller and facilitates all voice communication with other players, and
"ReVolt," a fun online racing game from Acclaim Entertainment Inc. Pricing and
specific offers in regions outside the United States will be announced locally
at a later date.
    With a hard drive, Ethernet port and slots for the Xbox Communicator built
in to all controllers, Xbox was designed by Microsoft to facilitate online
play right out of the box. Moreover, with more than 20 online service sites
and 270 million unique monthly users worldwide on the MSN(R) network of
Internet services, and the No. 1 online PC gaming site with Zone.com,
Microsoft is uniquely qualified by its resources and experience to lead the
way in online console gaming.
    Microsoft will be exhibiting new games and the Xbox Live online console
gaming service at E3, which begins Wednesday, May 22, and runs through Friday,
May 24, at the Los Angeles Convention Center. E3 is a trade show open only to
professionals in the interactive entertainment industry.

    About Xbox
    Xbox ( http://www.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 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.
    *Prices are estimated retail prices. Actual retail prices may vary.

    The information contained in this press release relates to prerelease
products and services that may be substantially modified before first
commercial release. Accordingly, the information may not accurately describe
or reflect the products and services when first commercially released. This
press release is provided for informational purposes only, and Microsoft makes
no warranties, express or implied, with respect to the press release or the
information contained in it.
     NOTE:  Microsoft, Xbox, MechAssault, Whacked!, Midtown Madness, Halo,
Amped, Project Gotham Racing and MSN are either registered trademarks or
trademarks of Microsoft Corp. in the United States and/or other countries.
    The "Star Wars" Galaxies massively multiplayer online game series from
LucasArts Entertainment Company is designed to immerse literally thousands of
players into the rich "Star Wars" universe.  The first product, "Star Wars
Galaxies," will feature dynamic role-playing ground-based adventures across
multiple planets in the classic "Star Wars" timeframe. Game play will offer a
unique combination of combat, exploration, social interaction, specialized
missions and daring quests.
    Officially Licensed Product of PLAYERS INC. The PLAYERS INC. logo is a
registered trademark of the NFL players. http://www.nflplayers.com/ (C) 2002
PLAYERS INC.
    (C) 2002 NFL Properties LLC. Team names and logos are trademarks of the
teams indicated. All other NFL-related marks are trademarks of the National
Football League.
    The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.



SOURCE Microsoft Corp.




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