Microsoft getting Ready for a Solid XBox Launch

Steve Ballmer, Microsoft’s Chief Executive said on Wednesday he expects successful launches of the Xbox 360 game console in the United States, Europe and even in Japan - the stronghold of its archrival Sony’s blockbuster machine PlayStation.

"We have very strong momentum, particularly in the northern parts of Europe, United States, Australia ... I know for sure, 100 percent, we will do much better in Japan than we did with Xbox 1," Ballmer told a news conference in Tokyo, where he was helping to celebrate the 20th anniversary of Microsoft’s Japan unit.

The $ 400 Xbox 360 "premium" bundle includes the completely redesigned game console; a wireless controller; cables for attaching the Xbox 360 to a TV set; a removable 20GB hard disk; a headset; customized face plates; a monster-size AC power adapter; and a free pass for a basic subscription to Xbox Live, the online gaming network that is rapidly setting Xbox apart from its main rival and the market leader, the Sony PlayStation 2.

Microsoft will also offer a basic Xbox 360 system for $ 300, consisting of just the console itself, a wired controller, and the basic Xbox Live service. However, the experience of using the full system is so compelling that most consumers are likely to opt for the premium package.

But amidst all the hype for the launch there have been speculations that Microsoft is purposefully holding back on shipments, trying to create an artificial appearance of extraordinary demand.

Xbox executive Peter Moore says no -- pointing instead to the unprecedented scope of the launch. Microsoft, seeking to solidify its place in the living room and challenge Sony’s dominant PlayStation franchise, is breaking from tradition by releasing its new machine in North America, Europe and Japan in rapid succession, over a span of three weeks.

"I’ve seen all of the conspiracy theories. Somewhere in Roswell, New Mexico, we have a hangar where we’re stockpiling it, creating false shortages. No," said Moore, a Microsoft corporate vice president. He called the theories "ridiculous" and said the company is "trying to get as many units to retail as we possibly can."

Microsoft is aiming to sell 2.75 million to 3 million Xbox 360 units in the first 90 days after the launch date.

But analysts have said the 90-day sales figure was probably still low, given that the Xbox 360 would not have a direct competitor this Christmas and that it would be accompanied by a rich lineup of games.