Microsoft gets a royalty of US$6 to US$8 for Xbox games sold by other publishers, compared with about US$20 each for its own games, he said.
Glucksman, 20, said he had been waiting in line since 8am.
Gates played the multiplayer competition game Fuzion Frenzy with Glucksman and others waiting at the front of the line. The New Jersey native received an autographed Xbox from Gates and a ride home because Glucksman had missed the last bus at 12:30am and planned to sleep in the bus station with his Xbox.
"It's got the best graphics power," he said. "It's going to blow everything else out of the water."
Gates also marked the event by playing Fuzion Frenzy with Toys R Us Chairman and Chief Executive John Eyler.
Peter Hirsch, 23, who originally intended to buy a PlayStation2, said he thought "Xbox was the better system."
Jeffrey Calpbell, on the other hand, said he has a PlayStation2 already, though the 32-year-old nursing assistant said the Xbox graphics look better and he wants to buy Dead or Alive 3, an Xbox exclusive.
At Microsoft's Redmond, Washington headquarters the company will mark the product's release by coloring the fountains the green shade featured on the console and by beaming an Xbox logo onto the side of one of the buildings most visible from the highway.
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