Tokyo: Feverish crowds rushed to buy Microsoft's Xbox console on February 22 as a glitzy launch heralded the arrival of a new player in Japan's multi-million-dollar video game industry.

Wowed by superior graphics, Internet access and high-speed downloads, some fans queued through the night to get their hands on the Xbox, but other bystanders shunned the machine as over-priced and dull.

"I came here straight from work last night to get a good place in the queue," said Yuzuru Saito, a 22-year-old student, standing outside a game store in Shibuya.

"It looks really sexy, I can't wait to buy one," he said.

Microsoft chairman Bill Gates came to the trendy entertainment district in Central Tokyo to launch Japanese sales of the console to the din of pumping music and video footage on jumbo screens.

Gates shared a stage with mega-star Yoshiki of pop group X-Japan. The pair battled for pole position on "Project Gotham", a car race game, before counting down the seconds to "X-Day".

"Five, four, three, two, one ... Xbox! The sales have started," a huge voice boomed from a microphone as a jet of green and white streamers exploded into the air.

Japan, the world's second-largest video game market, is the first overseas destination for the Xbox, which made its US debut in November 2001.

"I am so happy to buy one", said Saori Kimura, 35, clutching a bag containing the box-shaped console with its trademark alien-green cross.

"I have been waiting out here since 6:00 pm last night but it was well worth it. I can't wait to get home and try the machine out," she said. The Xbox comes with 12 launch titles, including car action adventure "Double Steal" and fighting mission "Dead or Alive 3", but analysts warn that Japanese rivals Sony and Nintendo could ruin Microsoft's quest to conquer the world's gaming industry.

"It may be difficult for Microsoft to win over a Japanese audience as there is a lot of competition," agreed Hiromichi Mukai, a 29-year-old computer programmer.

Sony's PlayStation 2 and Nintendo's GameCube are both cheaper and offer hundreds more games, but Microsoft's technical prowess is winning over fans.

"Although it is pricey, I want to try out the broadband facility so I am going to buy it," said Mukai.

Microsoft says the Xbox is three times as powerful as the PlayStation 2. It also comes with a built-in hard drive, giving users an unrivalled ability to store downloaded games.

"I think Xbox will be the hardware connecting everybody in the world," said Atsushi Ishizaka, aged 22, who bought the first console off Gates.

However, some gamers were deterred by Xbox's price-tag of 34,800 Yen), which compares with 29,800 Yen for the PlayStation 2 and 24,800 Yen for the GameCube.

"It is a bit too expensive at the moment so I am going to hold back for now," said Akia Shimpo, 23, a salesman. "They will probably have to cut their prices soon."

Expense aside, Microsoft may lose out because -- at about 30 centimetres (12 inches) wide, 30 centimetres deep and 10 centimetres (four inches) high -- Xbox dwarfs rival consoles and would be harder to fit in the small apartments of typical young games players in Japan.

There is also the question of national pride.

"Japanese want PlayStation, because PlayStation is Sony and Sony is Japan," said Tadashi Shimpo, a 25-year-old video game fan attending the Xbox launch.