Xbox Best-Selling Video Console after First 2 Weeks

RETAIL DATA SHOW MICROSOFT XBOX IS
BEST-SELLING VIDEO GAME CONSOLE AFTER FIRST TWO WEEKS

Attach Rate for Xbox Launch Is Highest Ever; Weekly Shipments of Xbox
Systems Ensures Strong Sales Through Holiday Season

REDMOND, Wash. – Dec. 4, 2001 – The Xbox™ video game
system from Microsoft Corp. had the best-selling video game console launch on
record after two weeks of sales, according to The NPD Group Inc., the
definitive source for sales and market data on the video game industry.

"The data clearly show that Xbox is off to a torrid start," said Robbie Bach,
chief Xbox officer at Microsoft. "Xbox sold out as soon as we launched, and
we’re selling systems as fast as we can produce them. More than 100,000 units
a week are being delivered to retailers, so game players are likely to find
Xbox systems throughout the holiday season. With one of the best launch
lineups ever, I understand why Xbox is the most sought-after gift for the
holiday."

Most importantly, Xbox purchasers can’t get enough of the Xbox launch games.
According to The NPD Group, gamers are buying 2.4 Xbox games with every Xbox,
resulting in the highest game attach rate ever recorded for a console at
launch. Sony Computer Entertainment America Inc. sold 1.9 games with every
PlayStation 2 during the first two weeks of its launch last year, and Nintendo
Company Ltd. has sold 1.9 games with every GameCube to date.

Microsoft’s "Halo™" was the best-selling launch title according to actual NPD
data, beating "Luigi’s Mansion," the top-selling GameCube game. "Halo," the
critically acclaimed sci-fi action game, also recently received a 10 out of 10
rating from the editors at Electronic Gaming Monthly magazine. Sales are also
very strong for Microsoft "Project Gotham Racing™," "NFL™ Fever 2002," and
third-party games such as "Dead or Alive 3™" from Tecmo, "Madden NFL™ 2002"
from Electronic Arts and "Tony Hawk’s Pro Skater™ 2x" from Activision Inc.

"There’s no doubt that Xbox has some of the most popular games for the
holiday," said Ed Fries, vice president of Microsoft Game Studios. "Whether
you crave action, sports, racing or fighting games, Xbox has killer games in
every category."

About The NPD Group

The NPD Group Inc. is the leading provider of comprehensive marketing
data collected and delivered online for a wide range of vertical markets. By
tracking both purchasing behavior and attitudes among the same consumers, NPD
offers subscribers unique insight into what’s happening in their industries
and why. NPD also measures both retail product movement and
e-commerce for a complete view of each market tracked. Consumer data
are collected through the firm’s Online Panel, which has access to over 3
million individuals, and will be delivered through a series of marketing
information portals, launching throughout the year.

Markets tracked by NPD include apparel, automotive products, consumer
electronics, cosmetics and fragrances, food, foodservice, footwear, housewares,
information technology, video games, toys, music and more. The firm has
offices and affiliations in 51 countries, covering North America, South
America, Europe, Asia and Australia.

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

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.

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* Actual retail prices may vary.