Microsoft(R) Lauches New Xbox 360(TM) Console For Families

LONDON - Oct. 23, 2007 - Just in time for the festive season, Microsoft today released a new Xbox 360 console that delivers games and content to everyone in the family for an estimated retail price of £199.99. Available in stores in the United Kingdom from Friday 26th October 2007, Xbox 360 'Arcade' is the first Xbox 360 console to include five family-friendly games. Xbox 360 Arcade also includes a wireless controller, an HDMI connection to enable high-definition output if desired and 256MB of memory--useful for storing games and other entertainment content. At an estimated retail price of just £199.99, the Xbox 360 Arcade console will include the full versions of the five best-selling games from the Xbox LIVE® Arcade including "PAC-MAN Championship Edition," (NAMCO BANDAI Games), "Uno," "Luxor 2," "Boom Boom Rocket" (Electronic Arts), and "Feeding Frenzy."

"As European families gather together this Christmas, it's the perfect time to launch a family orientated Xbox 360 package that plays games, video and music for everyone to enjoy," said Stephen McGill, Head of Gaming and Entertainment for Microsoft UK. "In addition to offering an incredible all-in-one package for families to get right into the fun, the Xbox 360 Arcade system features the industry leading family settings that allow parents to control what their kids are watching and playing, and we know how important that control is to families around the world."

The news of Xbox 360 Arcade comes as part of a broader initiative by Microsoft to bring the Xbox 360 experience to families everywhere. Microsoft also announced today that "SHREK-N-ROLL" (Activision) will be coming exclusively to Xbox LIVE Arcade, the place to download games for Xbox 360 over Xbox LIVE, adding more fun for everyone in the family.

Microsoft's commitment to family entertainment is complimented by the largest library of more than 200 family-friendly games available at retailers in the United Kingdom this Christmas, including "BEE MOVIE GAME" (Activision), "Guitar Hero III®: Legends of Rock" (Activision), "Naruto: Rise of a Ninja" (UbiSoft) , "Scene It? Lights, Camera, Action" and "Viva Piñata: Party Animals."

About Xbox 360

Xbox 360 is a superior video game and entertainment system delivering the best games, unique entertainment features and a unified online gaming network that revolve around gamers. Xbox 360 will have a portfolio of more than 300 games and will be available in nearly 40 countries by the end of 2007. More information can be found online at http://www.xbox.com/xbox360.

About Microsoft

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Prices herein are estimated retail prices. Actual retail prices may vary.

Microsoft, Xbox, Xbox 360, Xbox LIVE, Viva Pinata Party Animals, and Scene It? Lights, Camera, Action are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

For more information, press only:

Kate Szlendak / 0118 909 5334 / v-kaszle@microsoft.com