Microsoft goes into overdrive on Japanese Xbox launch

Microsoft is revving up its marketing juggernaut for its biggest challenge yet - the release of its Xbox video game system to the Japanese market.

Hiroshisa Ohura, managing director of Microsoft Japan said the company faced an uphill task taking on gaming giants Sony and Nintendo on their home turf.

Sony Computer Entertainment sold more than one million PlayStation 2 consoles in the first 10 days when it hit the Japanese streets in March 2000. By last December it had sold eight million in Japan alone.

Analysts estimate Microsoft will be lucky to see 300,000 Xbox consoles sold in the first few weeks.

However, the software giant defied analyst estimates when it launched in the US by shipping 600,000 machines. The company expects to ship six million units by June.

Microsoft will also have to contend with a price war. Initial pricing shows the Xbox to be nearly Y10,000 (£52) more expensive than Nintendo's GameCube and Sony's PlayStation 2.