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Microsoft goes online with Xbox games

Will this be the USP that puts the PS2 in its place?

By Heather McLean

Published: 20 May 2002 15:30 BST

Microsoft is set to announce the launch of its Xbox online gaming service in the US later today.

The company hopes that the online community of gamers on Xbox Live will boost profits for the Xbox after a slower-than-expected start in the marketplace, in which rival Sony is dominant.

Microsoft is investing $1bn in the project after cutting the cost of its Xbox in the US by 33 per cent last week in an effort to drive up sales.

Users will have to pay around $10 each month to subscribe to the service and will require a high-speed internet connection to play.

An optional headset, which will allow gamers to talk to each other over the net as they play, will also be on offer for $49.

A spokeswoman from Microsoft was unable to confirm when European gamers will be able to access Xbox Live services.

Microsoft has put more engineers to work on the online venture than it used in the original development of the console.

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