Retail Data Show Microsoft Xbox Is Best-Selling Video Game Console After First Two Weeks

REDMOND, Wash., Dec. 4, 2001 — The Xbox (TM) 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.

“Halo (TM) ” from Microsoft 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 (TM) ,” “NFL (TM) Fever 2002,” and third-party games such as “Dead or Alive 3 (TM) ” from Tecmo, “Madden NFL (TM) 2002” from Electronic Arts and “Tony Hawk’s Pro Skater (TM) 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.

Microsoft, Xbox, Halo and Project Gotham Racing are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages.

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