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Home -> Finance -> Full Story
Microsoft's Xbox game console flops in Japan
Thursday, May 16 2002 14:35 Hrs (IST)

Sony’s PlayStation2 outsmarts Xbox in Japan Tokyo: Japanese game fans have blasted Microsoft's Xbox video console, with sales lagging far behind its mighty rival, Sony Corp's PlayStation2 (PS2).

"Sales are really bad. We used to receive some 50 calls a day from customers who want to buy the Xbox. Nowadays, we hardly receive any about it," said Takahiko Fujiwara, a clerk at major computer and electronics store Sakuraya in Shinjuku, one of the busiest shopping districts in Tokyo.

"The Xbox simply lacks attraction to Japanese users because it does not offer much interesting game software. Without good game software, a game console is just a useless box," Fujiwara said.

Xbox has only 25 game software titles in Japan while PS2 has 501.

With much fanfare Microsoft's attempt to break Sony's domination made its debut on February 22 as Microsoft boss Bill Gates personally handed out the console to Japanese customers, brushing aside concerns it was too expensive compared with rival consoles.

However, just three months after the Japanese launch, Microsoft announced on May 15 it would cut the Xbox price to 24,800 Yen ($ 195) from 34,800 Yen starting from May 22.

Sony's PS2 originally cost 39,800 Yen when it was launched in Japan in March 2000, but the company cut the price to 29,800 Yen two years later.

Microsoft spokeswoman Maiko Ochiai said the price cut was in line with "the market situation" in Japan, adding the US computer giant aims to ship 3.5 to 4.0 million Xboxes worldwide by the end of June 2002.

"With the price cut, our product will become more attractive to Japanese customers," Ochiai said, adding Microsoft planned to release another 75 Xbox games by the end of 2002.