Merrill Lynch analysts said today Microsoft's new Xbox games console could cost the company $2 billion in losses before it breaks even in about five years.
Microsoft said it will spend $500 million to market its new Xbox computer games console in its first year on the market.
The Xbox is an Intel Pentium III processor-based console that Microsoft says is better for high-quality game development and offers superior graphics than the PlayStation 2.
Microsoft and Japan's NTT said today they will form an alliance to plug the software giant's new Xbox video game console into the Internet in Japan.
Net access for the Xbox is a key feature that the world's top software company hopes will give its new game machine, due out later this year, a fighting chance against Sony Corp's popular PlayStation 2 machine.
NTT Communications is the wholly owned Internet and long-distance calling service arm of Japan's dominant telecoms carrier Nippon Telegraph and Telephone (NTT).