"The Xbox 360 has grabbed an early lead, increasing the pressure on Redmond's rivals to roll out their own redesigns. And what about the new Cell chip?

Until last November, it had been more than four years since American game players had seen a new console. The new Xbox 360 continues to fly off store shelves even after the holidays. And now the PlayStation 3 and Nintendo Revolution are on the way. So it looks like 2006 could be the transition to the next generation.

Here's a primer on what to expect from the game industry in 2006:

So when can I get my hands on this new PlayStation 3?
While Sony gives the spring of 2006 as its official launch date, most analysts expect the updated console will hit store shelves in late spring or early summer in Japan, but not until November in the U.S. Sony historically likes staggered launches for game consoles, and its manufacturers are still ramping up their ability to design the advanced new chipset. When it does come out next fall, the PS3 will be just as hard to buy as the Xbox 360 was last Christmas. Citigroup's Elizabeth Osur has predicted that Sony will be able to sell roughly 900,000 PlayStation 3 units in the U.S. in 2006. Pacific Crest Securities analyst Evan Wilson says he expects about a million consoles to be available for the U.S. launch. That means a supply situation almost as tight as the one shoppers faced with the 360.

What about the Nintendo Revolution?
Nintendo hasn't announced a launch date yet, but last week, President Satoru Iwata told the Japanese press that Nintendo aimed to release its new system in the U.S. before Thanksgiving.

How are these consoles expected to sell once they're introduced?
A report released by Citigroup on Jan. 16 predicts that Xbox 360 will hold its lead and edge out the PlayStation 3 in the U.S. at the peak of the next cycle, selling an estimated 8 million units in 2008 compared with 7.1 million PlayStation 3s in that year (for a grand total of 19.8 million since launch vs. 11 million, respectively). Citigroup expects Nintendo to have sold 3.9 million Revolution systems by 2008. " [more]

"You know a console has to be getting closer to launch when Wal-Mart opens its product page for the item.

The killer of small town America and everything over-priced has officially launched its webpages for the Playstation 3 and Nintendo Revolution. Granted, all either page does so far is give you the specs from last year’s E3, but it’s something." [more]

"Known for its Battlecruiser and Universal Combat series of games, 3000 AD has jumped onto the Xbox 360 bandwagon with the announcement of two new action games.

Yes that's right, 3000 AD has sold out, the developers words not mine, and is hard at work on two titles for the Xbox 360. First up is Hostile Intent - Planetfall, an action game which stays well clear of the complex elements which were the hallmarks of the Battlecruiser and Universal Combat games. According to 3000 AD president Derek Smart we can expect "Improved graphics engines, advanced AI, massive game world and nail biting scenarios."

Smart says massive game worlds, but don't expect the same scale as found in 3000 AD's previous titles. The worlds will, however, be much larger than those traditionally found in console games. Expect scenarios to include "space and planetary excursions; first person and vehicular combat as well as a skill based progress system (e.g. from pilot to commander) through a revised campaign system."

Apparently the idea of the game is to blend the fun factor of games such as Battlefield with high-end technologies including seamless space and planetary combat." [more]

"If you haven’t heard, your Xbox 360 is fully customizable when it comes to the console or controller. Xtreme Enterprise has revealed their new line of colorful and exciting faceplates for the Xbox 360 console and controller." [more]

"UBS's Mike Wallace thinks Microsoft and Sony will win the next-gen console and handheld wars, predicts 3 percent spike in 2006 software sales.

Citing the start of the next-generation console transition and the lack of a Halo 2 or San Andreas-level blockbuster, many analysts predicted game sales would shrink in 2005. And while US retailers sold $10.5 billion of combined gaming hardware and software--6 percent higher than in 2004--taken alone, software revenue did slide 3 percent, from $6.25 billion to $6.06 billion.

Now, more and more analysts are beginning to predict what 2006 has in store for the game market. The latest expert to join the chorus is Mike Wallace, the lead game analyst at the Wall Street investment firm UBS. "We expect US software sales to grow 3 percent in 2006 (up from a 3 percent sales decline in 2005)," he said in his most recent report. "This is up from our prior view of flat sales in 2006, with the year-over-year increase mainly due to 2005 being weaker than expected."

Wallace believes the increase will be fueled by the debut of the second and third next-generation consoles. "The launch of Sony's PlayStation 3 console later this year, along with the launch of Nintendo's Revolution console, should represent the official start of the new cycle," he said. He also agreed that the PS3 will miss its previously announced spring launch window and will go on sale across the Pacific first. "We think a summer launch [in Japan] is more likely, with the US and Europe launches still expected in Q4," he said." [more]

"In a recent interview with Jeux-France, Clover Studio's President Atsushi Inaba discussed the development house's most recent Viewtiful Joe offerings as well as Nintendo's next-generation console, code-named the Nintendo Revolution.

What do you think about the Nintendo Revolution? Do you think that a Viewtiful Joe game could work with this console?

Atsushi Inaba: It is clear that we are really interested in the Nintendo Revolution, so we hope to create a game for this console. Now, if the Viewtiful Joe characters and the Viewtiful Joe world fit well wih the specs of this hardware, then we could indeed create a Viewtiful Joe game on Nintendo Revolution. But if it doesn't fit, we will try to make the best game that we can on Nintendo Revolution." [more]

"Could these be images of possible weapons details for a Nintendo Revolution game?

As of now, there are very, very few games that have been announced for the Nintendo Revolution. The list can basically be counted on one hand, at least the games that have been made official, that is. Most of them are from Nintendo, as expected, but even these games have almost no details provided on what they will be like. In fact, most appear to be simple remakes of current-gen Nintendo games. Not very “revolutionary,” yet, that is." [more]

"Microsoft posted a 5% gain in profits and the highest quarterly sales in its history, in the midst of a series of high-profile product launches the company is counting on to revive its underperforming stock.

The world's largest software company on Thursday reported that revenue for its second quarter ended Dec. 31 rose 9% to $11.84 billion--a quarterly record for the company, but still short of its forecast of $11.9 billion to $12 billion in sales. Net income rose 5% to $3.65 billion, or 34 cents per share. Sales of Microsoft's new SQL Server 2005 database software and Xbox 360 video game console boosted results. But operating income fell 2% to $4.66 billion, reflecting higher sales, marketing, and development expenses associated with the new product launches.

Shares of Microsoft (Nasdaq--MSFT) rose during after-hours trading following the report. The shares closed regular trading Thursday up 10 cents, or 0.38%, at $26.50. Microsoft shares have underperformed the major stock indices for the past three years. And a 7% rise in the shares' price since the company's last earnings report in October trails an 8% increase in the S&P Information Technology index.

During a conference call with analysts Thursday, Microsoft chief financial officer Chris Liddell called the company's servers and tools division a 'highlight' of the second quarter. Sales of SQL Server increased more than 20%, outpacing the overall database market, and adoption of the new product has been faster than the company expected, he said. The launch of the Xbox console during the quarter also lifted sales. The releases are part of a string of more than a dozen new products Microsoft plans to ship before the end of this year. During the second half of the calendar year, Microsoft plans to release Windows Vista, the next version of its flagship PC operating system, and a new version of its cash-cow Office suite.

But questions remain about the company's ability to capitalize on PC sales growth, meet demand for the Xbox, and build its Internet businesses. Liddell said PC unit sales grew between 11% and 13% during Microsoft's second quarter, and the company expects 12% to 14% growth during the fiscal year which ends in June. The positive estimate follows Intel's report last week of soft PC demand. But faster growth in emerging markets than in the United States, Europe, and Japan, and stronger sales of lower-priced home versions of Windows compared with business versions mean Microsoft has collected less money on the software bundled with each machine. This week, Microsoft said it would release additional source code for its Windows server operating system to comply with an antitrust ruling by the European Union.

Component shortages have constrained Microsoft's ability to deliver enough Xbox consoles to meet demand; the company shipped 2.5 million units to retailers during the quarter, compared with its previous forecast of 2.75 million to 3 million units.

And revenue from Microsoft's MSN division was little changed from a year ago. Microsoft's test versions of new Internet ad-serving software it's developing are having "a dampening effect on revenue from search," said Liddell.

Microsoft is counting on new releases of its Internet products for growth. On Wednesday, Microsoft said it's formed a "live labs" applied research group to speed new Internet technologies to market. The group, headed by Microsoft technical fellow Gary Flake, will prototype and release emerging technologies in areas including multimedia Web searching, machine learning, distributed computing, and data mining, the company said.

Microsoft on Thursday also provided financial guidance for the rest of its fiscal year. For the third quarter ending March 31, Microsoft forecast revenue of $10.9 billion to $11.2 billion, and operating income of $4.5 billion to $4.6 billion. For the fiscal year ending June 30, the company said it would post operating income of $17.9 billion to $18.3 billion, on $44 billion to $44.5 billion in sales." [more]

"Microsoft says more than 1000 Xbox 360's will be demonstrated in retail stores from February 2006, paired up to high-definition Samsung plasma displays.

It couldn't provide an exact preview release date or comprehensive list of participating stores, but said that all the usual major suspects - read Harvey Norman, Electronics Boutique etc - will provide the action, which will have to tide folks over until the official 2 March 2006 release date.

Game titles for the demonstration units will include Project Gotham Racing 3, Kameo: Elements of Power, Peter Jackson's King Kong and NBA Live 06.

Punters are "Encouraged to familiarise themselves with the new features of the console, such as the console navigation blades and multimedia functionality". Doubt they'll need to be asked twice." [more]

"Could Sony be planning to surprise everyone with its PlayStation 3 plans? With the introduction of Blu-ray, and the next generation games market up or grabs, the company is getting ready for the fight of its life. Colin Campbell looks at Sony's big conundrum...

For the most up-to-date game industry news and analysis, join the thousands of game industry professionals who read Next-Gen.Biz every weekday morning.

Image Rumor is that an announcement is due some time in the next eight weeks. Of course, a rumor in the game industry carries about as much value as an Albanian supermarket voucher. Next Generation merely reports the existence of the rumor; we're in no hurry to win Gamespot's dreaded 'Bogus' rating in its excellent Rumor report.

But we will take the opportunity to ponder this puzzler; what the hell is Sony up to? Let's speculate.

First things first

Sony's ultra-high level Destination PlayStation conference is due to take place in Florida at the end of February.

Only senior publishing and retail executives will be invited. Between games of golf and fruity fine wines, they'll be hearing some of Sony's master-plan to shape not just the future of the game industry, but the future of media consumption as a whole." [more]

"Revolution Report, in conjunction with tech reporting site Philoneist, introduces the Nintendo Revolution Dream Game Concept Competition. We're encouraging our well-informed readers, who know about the next-generation Nintendo controller, to let their creative juices flow and craft a unique game idea along with a cool, innovative control scheme.

One lucky winner will receive a $50 Amazon.com gift certificate AND will be included as a guest speaker on the Revolution Report podcast.

Here are the contest details:
Submit a well-written and cogent description of your game idea that takes advantage of in-game 3D movement made possible by Nintendo's Revolution controller. It can feature an existing franchise or have entirely new characters. You may also create mockup peripherals to add to the controller, but need to be explained in detail. You can use franchises that haven't appeared on a Nintendo home system - Halo, Grand Theft Auto, etc. Anything goes, but remember you need to convince other people why your game idea would be more fun to play." [more]

"A. The Xbox 360 has Windows Media Extender technology built-in, which means it can read music, pictures, video and even television from your Windows Media Center 2005 PC or music and pictures from a regular XP (Professional Edition or Home Edition) Service Pack 2 (SP2) or later machine.

To stream media from a Windows Media Center 2005 PC to a Xbox 360 you must install the Update Rollup 2 for Windows XP Media Center Edition 2005..." [more]

"Enemy Territory may well be heading to 360 but Splash Damage won't commit to a version quite yet

After seeing Enemy Territory: Quake Wars just over a week ago, we have to say we're very excited at the prospect of seeing Splash Damage's humans versus Strogg shooter make a big impact on PC this year (catch up with our exclusive interview here).

Of course with the first solid evidence of a classic PC game in the making, rampant speculation in US mags had it that ET: QW would also be heading straight onto the Xbox 360. As we said at the time, we thought it would be a natural fit but we'd be surprised if Splash Damage could say anything right now. Even so we put in a missive to the Damage to see if they'd bite." [more]

Image from the PC version of Quake Wars. For more info: http://www.enemyterritory.com/

"A tester for Guerrilla Games, developers of the next generation Killzone for the Playstation 3 has given a small hint that developing for the console isn't as hard as people make out, atleast compared to the Playstation 2.

'And as for the PS2 vs PS3 development question. I was chatting to Michiel and he was telling me how crazy-easy it was compared to the PS2 and how much quicker things have been going for them. I will take his word on that' Seb Downie - Lead Tester - Guerrilla Games

Of course this really isn't saying much, but its a slow news day so you'll have to forgive." [link]

High resolution Tomb Raider Legend Xbox 360 screenshots

"As Tomb Raider Legend quietly nears its expected April release, Eidos has been mum on new media - especially for the Xbox 360. The long lull makes these 5 new high resolution screenshots featuring our favorite voluptuous female version of Indiana Jones all the more welcome." [more]

"Recent rumors have set both the Nintendo Revolution and the PS3 to launch this Thanksgiving

Could the Nintendo Revolution and the PS3 launch the same time? It’s beginning o to look more and more likely. Both Nintendo and Sony have been less than forthcoming with any real concrete information. Rumors have set release dates anywhere from March to sometime next year. However, the latest rumors have both consoles to launch around American Thanksgiving.

Nintendo is planning on releasing their “revolutionary” new system this fall, near Thanksgiving to be precise. This release date is drawn from new quotes from Nintendo president Satoru Iwata who stated, "We can't disclose the Revolution's release period yet, but we have no plans to miss out on the year-end sales battle. As for North America, we need to release it by Thanksgiving, or otherwise we won't receive support from the retail industry. So the Revolution will be released prior to that period."

In regards to the issue of when the Sony PS3 will launch, Forbes Magazine said: "Sony's last word on this remains spring 2006, but almost nobody believes it — at least not for the North American launch — because of a history of delays for previous products. Thanksgiving looks to be a better bet, at least to Evan Wilson, an analyst with Pacific Crest Securities."" [more]

In what seems to be a growing trend this week, even more publishers are announcing their support for the Nintendo Revolution. Nintendo has to be very pleased to hear each and every announcement due to the widespread speculation that the Revolution would not be receiving much third party support and would have to develop most of the games themselves." [more]

"Sometime later this year, both Sony and Nintendo will release their next-generation video game consoles, the PlayStation 3 and the Revolution, respectively.

The new machines offer the promise of state-of-the-art graphics and could leave their predecessors, Sony's PlayStation 2 and Nintendo's GameCube, in the dust.

But the two consoles will be launched into a video game atmosphere in which software sales are slowing, and many worry that innovation has been forgotten in lieu of a never-ending flow of sequels. And while franchises like Electronic Arts' 'Madden' and Nintendo's 'Super Mario Bros.' are reliable best sellers, some fear that the industry has lost its enthusiasm for creating brand new titles.

Thus, though the November launch of Microsoft's next-generation console, the Xbox 360 was considered a success, and it's still hard to find one of the machines, there's been a notable lack of excitement over any of the Xbox launch titles. And that's because, though there were a couple of brand-new games for the Microsoft console, most of the 18 that were available for launch were sequels.

For its part, though, Nintendo said it plans to bring a new level of innovation to the table with Revolution. And with that in mind, CNET News.com recently caught up with Reggie Fils-Aime, executive vice president of sales and marketing for Nintendo America, and asked him about the company's plans going forward.

Q: We understand you have some New Year's resolutions for Nintendo. Let's start there.

Fils-Aime: Sure. From my perspective, I have five resolutions for the industry heading into 2006. The first is keeping our eyes on the prize. This industry is about entertainment, and in the end, he with the best games wins. So at Nintendo, we're focused on putting the most entertaining products into the marketplace.

The second resolution is keeping the mass in the mass audience. The world is fragmenting all around us, and many companies are making their products too exclusive and expensive for the general consumer.

For example, for American consumers to get into the Xbox 360 franchise, with games and extra contollers, they had to spend more than $700, not including an HD TV, which is really the only way to positively experience 360. We resolve at Nintendo to remain within reach for the vast majority of our consumers.

How?

Fils-Aime: By first creating gaming-centric systems and consoles, whether it's handhelds or home consoles. That will ensure that for gamers, our products are totally focused on their needs versus products that try to integrate music or other things that, frankly, aren't what great gaming experiences are all about.

Since you mentioned pricing, I assume the Revolution will be accessible to gamers for substantially less than $700?

Fils-Aime: That's correct. The next-generation console from Nintendo, code-named Revolution, will cost less than $300. Our third resolution is to stop turning away new players.

This industry has become more and more focused on the niche, and at Nintendo, we've opened our systems to a wide range of consumers. Whether it's consumers older than 35 or female gamers, we've attracted them with "Nintendogs" and "Animal Crossing," so we've resolved to bring as many new consumers into this industry as possible.

And the fourth resolution?

Fils-Aime: It is to turn game development into a democracy of great ideas. Just as the cost of systems seems to be getting out of reach for everyday consumers, the cost of game development is getting out of reach for game publishers. The Revolution will be more affordable for game developers to create for, and that will result in fantastically innovative content." [more]

"Sony's plans for the launch of PlayStation 3 are likely to be one of the biggest factors defining publisher and developer planning for 2006 - but in the absence of hard facts, it's essential to be wary of uninformed speculation, says Rob Fahey.

We'd like to express our sympathy to anyone reading this who is, as some of you probably are, in the unfortunate situation of having to make business decisions based around the launch of PlayStation 3 later this year. In the wake of Microsoft's Xbox 360 launch, with all its attendant supply problems (which are still afflicting retail even now), deciding how to treat a next-generation console launch from a publisher or developer perspective right now is a game not dissimilar to playing Snakes and Ladders. While blindfolded. In a room full of hyperactive monkeys.

The situation is hindered significantly by the fact that every pundit has a wildly different view on how Sony's PS3 launch is going to pan out. Typically, US analysts - who often favour the Xbox 360 to take a large chunk of the market in the next generation - seem to be downbeat on the prospects for PS3's early days, while Japanese analysts are generally more convinced by Sony's plans. Those in the Blu-Ray camp are convinced that PS3 will be a conquering hero, HD-DVD's supporters talk darkly about the console costing roughly the national GDP of Sweden to purchase and being shipped in numbers that you can count without having to use all your fingers and toes." [more]

New Xbox 360 Dates From Japan

"Rumble Roses and the second Japanese RPG.

The Xbox 360 hasn't been performing all that well over in Japan, but perhaps things will turn around as new releases make it out to retail. This past week, we learned of release dates for two of the system's more anticipated titles.

First up, because it's probably a bigger draw for American audiences, is Rumble Roses XX. Konami will release the next generation installment in its all girls wrestling series to Japan on 3/30, 18 and up rating and a 7,329 yen price point in tow. The game features four player Online battles and two player Online play during story mode" [more]

"Kong returns

Disclaimer: I am not a Nintendo fan. Of all Nintendo systems, I only owned the NES, GBA, and briefly, the SNES. The N64 was a subject of my humor and the GameCube earned immediate contempt for its storage format and the vastly inadequate memory cards it came with (it took 3 or 4 to save a season of Madden with rosters on release). Regular readers of the site will have no doubt read many of my scathing comments about the Revolution controller design.

Consider that in the past year, oil has doubled in price to hit and maintain historic highs. Except for handhelds, game sales have slumped across the board, even in the industry console darling PlayStation 2. The DOW Jones Industrial Average remained flat throughout 2005, with the S&P and NASDAQ barely keeping pace with inflation. At the end of that same year, Microsoft released the most expensive console yet, and one that sold out but is plagued by continuing supply shortages. In Japan, as usual, an American-made (or rather, American-designed) product has flopped. Like countless other American companies, Microsoft has faced a stiff, impenetrable and informal wall of Japanese nationalism which clings stubbornly to a Japanese product. In short, one of the three key markets for the Xbox 360 is denied.

Sony, meanwhile, faces its own problems. Rumors abound of a five hundred dollar PlayStation 3. That’s enough Benjamins to get your hands on a beater car or pay a month’s rent in most American cities not called San Francisco, Los Angeles, or New York. It passes that psychological barrier of being half a thousand dollars, and even in these days of raging trade and budget deficits that devalue the dollar, a grand is nothing to sneeze at. There’s a reason that prices like $99.95 are more popular than $100, though that five cents is trivial.

Moreover, gamers are dissatisfied. Though game review scores live in their own little world of the 60-90% range (with everything below being reserved for Daikatana and Mortyr), last year was not a banner year either for game sales or game awards. Nothing blew us away, there was no equivalent of a Grand Theft Auto, a StarCraft, a Quake or even a Call of Duty. Well, there was Call of Duty 2, but it was a sequel, like just about every other major title, and gamers have shown their displeasure with sequels. According to release lists for most major publishers, this coming year will be little different – more sequels!" [more]

"Peter Moore should be tired. Today, the Corporate Vice President of Worldwide Retail Sales and Marketing for Microsoft's Home and Entertainment Division (translation: He has to make Xbox 360 the No. 1 console in the world) woke up early enough to get in a 6 a.m. workout. So he could make this 8 a.m. interview with us. So he can work a full day afterwards. So he can finish in time to do a 5:00 p.m. photo shoot with us later. So he can wrap that up and work through the night (when it's business hours in Japan). So he can fly out to Tokyo in the morning. Just another 16-hour workday for the guy. But Moore isn't tired. He's brighteyed awake and ready to discuss the Xbox 360's recent problems and future prospects. The man seems to draw from an endless supply of energy whenever he talks to the press, which is good for him, because this interview is no walk in the park....

The Past: Launch Time

EGM: What was your biggest worry leading up to the Xbox 360 launch?

Peter Moore: I think you always worry when you're launching brand-new hardware, something as complex and next generational as this, that software won't be ready in the quantity and quality that you hope for on day one.
But our biggest concern is getting the right launch titles out and meeting the genres that we need to for gamers' tastes. I think that now as I look back on it, we obviously did a phenomenal job, getting 18 titles out on day one, spanning just about every genre. I guess the only slight disappointment is that Elder Scrolls IV: Oblivion didn't make it, that we didn't have a [role-playing game]. But there's never really been an RPG at the launch of any major console anyway, and Elder Scrolls is not far behind.

EGM: How did the 360 launch compare to the Dreamcast's, which you worked on, and PS2's?

PM: Well I certainly think the PlayStation 2, even by [Sony's] own admission, didn't have strong games at launch.

I think the Dreamcast had some great games at launch, but it didn't have the ability to sustain itself past the first six months, and of course it didn't have Electronic Arts on the platform at any point during its life cycle. So we're delighted with the quality and the quantity of titles at [Xbox 360's] launch on a global basis." [more]

"An original Sonic title destined for Revolution, Nintendo claimed to be back in the "race."

A couple of interesting rumours slash unofficial news have hit the internet, and as such, we're "reporting"...

IGN have published an article in which they claim to have been informed by "sources close to Sega" that a wholly original Sonic the Hedgehog title is in development for the Nintendo Revolution. A separate, more traditional title, is already underway for the other next-generation platforms and up until now there had been no word on a Revolution version. But, although not official, this claim seems very credible and paints a very good picture for the future of Revolution. Hopefully gone will be the lazy, watered down ports for Nintendo's console and replacing them shall be original and exclusive Revolution versions of games.

In another IGN-related report, one of the website's VIP members (apparently these accounts are reserved for industry personell) has said on the IGN message board that they believe "'someone' is back in the race." Presumably, they're referring to Nintendo - here's the full quote:

"I'd love to talk 'in-depth' about next-gen systems too, more specifically PS3 and Revolution but, as you can imagine, we're under embargo to release any details about those systems. Also, I don't want to speak on behalf of Ubisoft as to which system is going to win until they've all launched. Last thing I need is a NOA/SCEA/MS representative calling Ubisoft saying that I was bad talking their system. All I can say is - I think 'someone' is back in the race."" [more]

"With a title as important as The Godfather, Electronic Arts has to get things right, which is why the company officially delayed the game last year at its annual July Hot Summer Night event. Today, Electronic Arts has again delayed the Xbox 360 and PSP versions, while staying on schedule for an Xbox, PS2, and PC March release.

EA would not explain the full reasoning behind the delay, though it’s clear that the game’s size, scope, and multiple SKUs using vastly different technologies have much to do with it. The Xbox 360 and PSP versions are likely to be delayed to a late summer release, said an EA spokesperson, though he could not confirm an actual month.

The Godfather is EA’s first open-design or urban mayhem-style game, based on the Mario Puzo novel and the 1970s Francis Ford Coppola movie. In it, players create their own Italian-American gangster from the time period who makes his way up the Corleone family chain of command by eliminating rivals gangs in New York and taking over their businesses." [link]

"Microsoft chief Bill Gates has been speaking about Halo 3 for Xbox 360 and believes that it will be a 'super great product'.

Bill also revealed that Bungie will be given all the time it needs to make the intergalactic FPS a killer-app for Xbox 360.

'It's up to the team when it wants to ship Halo 3 and it's going to take its time to make the game a super great product. So even we don't know when it will come out,' he told US website Engadget.

He also took time to discuss the upcoming hardware battle between Xbox 360 and PlayStation 3 and believes Microsoft's experience in the area of online gaming with the original Xbox Live will be key.

'We learned about contests and spectators, and so this is really a second generation of Live for us... it's based on software expertise, so it will be interesting to see what Sony does in that dimension.'

Gates remains bullish about the performance of Xbox 360, despite the present shortages stating that he is certain that Microsoft will have a substantially higher share of the market in this generation than it did in the last." [link]