Microsoft Begins Xbox Production

Microsoft Corp. Friday confirmed that it has begun manufacturing its new Xbox game console in Guadalajara, Mexico, and said
definitively that it will launch the new platform in North America on Nov. 15.

“Put a great big ‘X’ on Nov. 15,” said Robbie Bach, chief Xbox officer at Microsoft. “Xbox is the one worth waiting for. It’s the
only video game system being manufactured in North America. This is significant because it assures retailers that we can keep
filling the retail channel with new Xbox units week after week.”

The company said it will ship between 1 million and 1.5 million consoles to North American retailers during the holiday season, and
will replenish the channel with more than 100,000 units per week.

Microsoft also said it will launch the console with 15 to 20 games and finish the holiday season with more than 30 titles under its
belt, including games from developers like Sega, Electronic Arts, THQ, Tecmo, Infogrames, Activision, Konami, Eidos, LucasArts and
Midway. Titles will include “Halo,” “Oddworld: Munch’s Oddysee,” NFL Fever 2002,” and a number of others, including games from
Microsoft’s in-house studios.

“The degree of success of a console is based on customer acceptance and a lineup of great games, not on a launch date or initial
numbers,” said Jeffrey Griffiths, chief executive officer of Electronics Boutique. “Thus far, customer enthusiasm has been
exceptional, and we’ve been very impressed with the assortment of games. We’re confident in the long-term success of the product and
pleased to be working with Microsoft in this venture.”

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