Keynote at Tokyo Game Show Reveals Major Xbox Details

TOKYO - March 30, 2001 - In his keynote address today at 2001 Spring Tokyo

Game Show, Microsoft Corp. Chairman and Chief Software Architect Bill Gates

revealed the company’s plans to bring the XboxT video game system to Japan.

During the keynote, Gates underscored Microsoft’s commitment to the

Japanese market and announced that more than 70 Japanese game companies,

including Sega Corp., have declared their support for Microsoft" Xbox.

“With Xbox, our goal is to create the future of video gaming, and our work

in Japan will play a key role in achieving that,” Gates said. “We’re

extremely excited to be working with Japanese games artists on Xbox to

pioneer new dimensions of creativity in video games.”

Microsoft and Sega Team Up on Xbox

Gates revealed that Microsoft and Sega have struck a long-term, strategic

alliance to bring future versions of great Sega" games to Xbox. Sega will

premiere 11 of its future titles on Xbox, including “Jet Grind Radio

Future(tm)” (tentative title), the latest version of “Panzer Dragoon(tm),”

“GUNVALKYRIE(tm)” and the latest version of “Sega GT(tm).” Sega will also

explore opportunities to harness the Ethernet port and hard disk drive

inside every Xbox console to create new online game experiences.

Xbox Games Without Frontiers

On the heels of Microsoft’s announcement yesterday of a strategic alliance

with NTT Communications Corp. to build a broadband online gaming service

for Japan, Gates also outlined a vision for online video games, in which

Xbox gamers can connect to a high-speed, high-bandwidth, always-on game

network.

“Broadband online video gaming is on the verge of becoming as revolutionary

as 3-D gaming was just a few years ago,” Gates said. “The broadband

connection in every Xbox is the key that unlocks new worlds of play, where

friends and opponents are everywhere.”

Gates discussed many scenarios for Xbox online gameplay in the future,

including these:

Boundless gaming. Xbox video game players will have the potential to

instantly connect with online gaming communities to compete in social

environments. Another scenario Gates discussed was one in which Xbox video

game players will be able to participate in episodic and dynamic games that

extend their game experiences beyond what comes on the game DVD.

Simple, fast and predictable experiences. Online video gaming will be

made easy on Xbox because of the broadband connection on the console.

Microsoft Announces Xbox Japan Division

Microsoft today also announced details on its Xbox Japan Division in Tokyo.

The division is responsible for managing third-party relationships with

Japanese games companies, and for managing Xbox operations, marketing,

research, sales and support in Japan. The division also houses the Xbox

Games Production Group, dedicated to developing and publishing exclusive

Xbox games under the Microsoft label.

Toshiyuki Miyata, senior group manager of the Xbox Games Production Group,

formerly managed the Development Department at Sony Computer Entertainment

Inc. (SCEI) in Tokyo, where he directed the creation of Sony’s PlayStation

games. During the keynote, Miyata demonstrated his team’s latest creation,

currently code-named “Project K-X,” an Xbox fighting game.

New Xbox Game Controller for Japan Unveiled

In addition, Gates showed the custom Xbox game controller, which will come

with every Xbox in Japan. Based on feedback from Japanese gamers, the

controller is slightly smaller than the North American and European

controller, and the buttons have been positioned to best accommodate the

styles of gameplay popular in Japan.

The Japanese Xbox game controller is built for maximum control and comfort.

It features an eight-way directional pad (D-pad), left and right analog

sticks, left and right shoulder triggers, six pressure-sensitive

multicolored analog buttons, dual slots for memory cards and other

peripherals, and a built-in “rumble” feature to increase gaming realism.

The controller also features a cord more than 9.5 feet long to give gamers

the freedom to sit nearly anywhere they want during gameplay.

About Xbox

Xbox (http://www.xbox.com/) is Microsoft’s future-generation video game

system that delivers new and unforeseen gameplay experiences. With more

than three times the graphics performance of the newest generation of game

systems, Xbox unleashes game designers’ creativity to produce games that

are challenging, exhilarating, surprising and fun.

About Sega Corp.

Sega Corp. is a nearly $2.5 billion company recognized as the industry

leader in interactive digital entertainment media, offering interactive

entertainment experiences both inside and outside the home. Sega’s World

Wide Web site is located at http://www.sega.co.jp/.

About Sega of America

Sega of America is the American arm of Tokyo-based Sega Corp., and is

responsible for the development, marketing and distribution of Sega video

game systems and video games in the Americas. Sega of America’s World Wide

Web site is located at http://www.sega.com/.

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.