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Microsoft's Xbox sold at discount by the Japanese

Microsoft Corp's Xbox video-game console is being sold at a discount of as much as 20 percent by some Japanese retailers in a bid to generate sales by undercutting the price of Sony Corp's PlayStation2 machine.

Laox Co, which has more than 20 outlets selling consumer electronics in Tokyo, said it's offering the Xbox for Japanese Yen 19,800 (US$160) until Dec. 25 at its stores and through its Web site. Chain retailers Sofmap Co and Sakuraya Co are selling the game machine at the same price.

The discount places the price of Microsoft's Xbox at about a fifth less than the Japanese Yen 24,800 selling price of Sony's older PlayStation2 console at the same retailers. Sony's Playstation2 has outsold the Xbox about 11-fold in Japan, while Nintendo Co has sold about three times as many of its GameCube consoles.

Selling the console below Microsoft's recommended retail price may help Japanese retailers reduce inventories of the game console?.

The software maker has taken several steps to stimulate Xbox sales, which have lagged Microsoft's expectations in markets outside the US Microsoft's home and entertainment division, which sells the Xbox console, posted a loss of US$177 million from sales of US$505 million in the quarter ended Sept. 30, according to a filing with the US Securities and Exchange Commission.

In Japan, Microsoft on Nov. 21 began offering a free remote controller with each Xbox. The controller, previously sold separately by retailers, allows Xbox owners to play DVD movies on the game console. The retailers said they will include the remote controller at the discounted price.

In the US and Europe, Microsoft is selling Xbox along with the Sega Corp software titles Jet Set Radio Future and Sega GT 2002.

"Our sales promotion for the year-end shopping season is to sell the console with a free DVD remote controller," said Midori Takahashi, a spokeswoman at Microsoft's Japan unit. "It is up to retailers to cut the price further from the recommended price."
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