NEWS - Wednesday, October 9, 2002


Microsoft makes contingency plan - Xbox Live

SEATTLE — Microsoft has been spending millions of dollars developing and fine-tuning video games, polling thousands of testers and choreographing the Nov. 15 launch of its Xbox Live online video game service. But there's a kink that the software giant didn't expect: the West Coast port lockout. Although a federal judge in San Francisco yesterday approved President Bush's request to reopen the ports, the lockout's impact may linger well into the all-important holiday shopping season. With five weeks to launch, Microsoft is eyeing contingency plans to make sure retailers have the Xboxes and related equipment on shelves to match the promotion of the new service. "We're going to make sure there's enough product in the channel to launch that product," said Microsoft spokesman Matt Pilla, adding that the company will "absolutely" spend even more on the money-losing Xbox if need be. "Xbox Live's launch in this holiday season is certainly important to the Xbox business and us." Pilla said the company is "comfortable" with the production of Xbox consoles at its Mexican factory for now and is analyzing the impact the lockout may have. Catch the rest of the story here.
Source: http://seattletimes.nwsource.com/

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