Xbox Brings Early Holiday Cheer With Free DVD Movie Playback Kit

REDMOND, Wash., Aug. 26, 2002 — For movie fans and gamers, the Xbox (TM) video game system from Microsoft Corp. just became the blockbuster feel-good hit of the year. Effective immediately through a special limited-time retail offer, it is now possible to get the popular DVD Movie Playback Kit for Xbox free after a mail-in rebate worth up to $30*. This offer is good now through Nov. 2, 2002, and is available with the purchase of an Xbox console at any retail outlet in the United States.

“We sold more units of Xbox than any other video game system last month,”
said Pete Roithmayr, vice president of merchandising for EB Games.
“When you combine this rebate with all the great games in the pipeline and the upcoming launch of Xbox Live, this holiday is looking very strong for Xbox and EB.”

The Xbox DVD Movie Playback Kit, which comprises a small plug-in infrared receiver and remote control, is a quick way to expand the functionality of Xbox. To enable the console to play DVD movies, users need only plug in the infrared receiver to a controller port and use the remote control to control movie playback.

Even before the DVD playback kit rebate, Xbox has been widely regarded as the best value on the market in terms of features, games and the power of the console. For $199, Xbox offers the best graphics via the fastest and most robust hardware. It is the only console with Dolby Digital 5.1 Surround Sound support built into the hardware. It is the only console with a built-in 8 GB hard drive and Ethernet port necessary for high-quality online gaming. The hard drive also enables saved games to be stored easily and allows songs from music CDs to be stored for easy access and use during gameplay. And now the video playback kit, which effectively turns the console into a top-notch DVD movie player, is available free after a mail-in rebate.

“Xbox was selling great before this rebate, but I anticipate this will really give it a huge boost,”
said Dan DeMatteo, president and chief operating officer of GameStop Corp.
“We do a lot of Xbox business, and we know the gaming customer very well. We think this will resonate very well with people who like to play games and watch movies. This offer, along with more than 200 games available this holiday, is going to make an already hot gaming system absolutely fly off the shelves.”

About Xbox

Xbox ( http://www.xbox.com/) 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, Japan, Europe and Australia.

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.

* Additional rebate offer restrictions apply. See retailers for complete offer details.

Microsoft and Xbox 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.

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