Reduced Prices for Console, "Xbox Music Mixer" and Several Software Hits
Will Expand Community of Xbox Gamers!

The console dubbed the sexiest video game system is becoming even more attractive. Effective March 30, the MicrosoftR Xbox® video game system will be available for a handsome $149.99* in the United States and $199.99** in Canada, representing a significant savings of $30 for consumers in both regions. In addition, Microsoft will reduce the price of the Xbox console in Mexico to $1,999*** pesos, which translates to a consumer savings of $500 pesos or roughly $45 (U.S.).

With a fantastic new price, more than 400 games, an active online community of nearly 750,000 Xbox LiveT subscribers, and DVD and CD playback capabilities, Xbox validates its competitive advantage while adding a whole new breed of Xbox players to its ever-increasing community of gamers from
broad and diverse backgrounds, including many of the world's most well-known celebrities.

"I love playing Xbox games and believe that the system's cultural influence as a social entertainment brand has only just begun," said P. Diddy, musician and Xbox fan.

New Prices on Great Games for Everyone

Microsoft goes one step further in broadening the appeal of Xbox today by lowering the price of several popular software hits. "Xbox Music Mixer," a pioneering product that broadens the system's audience with stellar karaoke features, an interactive media player and PC-to-Xbox connectivity
functionality, taking the console video game experience beyond gaming, will be available for $19.99* effective March 30. In addition, "Project Gotham RacingR 2," "Crimson SkiesR: High Road to RevengeT" and "Counter Strike" will be available starting tomorrow for $29.99,* while "Voodoo VinceT" and " Grabbed by the Ghoulies" are available today for $19.99.*

"We have always been committed to providing gamers with the best entertainment experience available," said Mitch Koch, corporate vice president of Microsoft worldwide retail sales. "At this lower mass market price point, we're opening up this great system to an even broader audience
of people who can experience Xbox for the first time."

Not to be outdone, Microsoft's Platinum Hits program has added branches to its family tree with the launch of Platinum Family Hits earlier this month. The Platinum Family Hits program, the first of its kind in the video game industry, offers the most proven and critically acclaimed Xbox titles that
are targeted toward a more family-oriented audience. The inaugural titles, available for $19.99,* include "Finding Nemo" (THQ Inc.), based on the Walt Disney Pictures presentation of a Pixar Animation Studios film, and "Harry Potter and the Chamber of Secrets" (Electronic Arts Inc.). Several
qualifying E-rated titles will be added to the Platinum Family Hits product line each calendar year.

Now at its new price, Xbox is setting the stage to continue its trend of being the only video game system to experience console unit growth in 2004 in the United States. In February, according to recently released data from NPD Funworld,**** Xbox console sales grew 2 percent year over year, while Playstation 2 declined 29 percent and GameCube declined 18 percent.

www.Xbox.com