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Microsoft puts a little extra under the tree for Xbox fans
Xmas Xbox sales driven by game give-away...

By Michael Kanellos

Published: Monday 14 October 2002

Microsoft is stepping up its efforts to win market share in the console war with Sony by bundling two free games with its Xbox in time for the Christmas sales surge.

From 15 October until the end of the year, US consumers will get copies of racing game 'GT 2002' and Sega's 'Jet Set Radio Future' free with the purchase of a $199 Xbox.

The bundling deal follows one of the hallowed maxims of consumer PC retailing: Give away something for free, and the customers will come. By including two games, Microsoft and its retailers can tout Xbox as better value than Sony's PlayStation 2, which so far has been more popular and features more game titles.
John O'Rourke, director of Xbox marketing, said: "The intent behind this is to reach a wider audience."

Deals like this could become more prevalent with the spectre of a slow holiday sales season hanging over companies. The fourth quarter is typically the strongest period for electronics manufacturers. Threats of war, a weak economy and other factors, however, have sapped the life from the market.

PC makers have already launched price wars, selling computers for $399, to nab whatever sales they can.

For game console makers, bundling can represent a risk. Consoles actually sell for less than they cost to make, as manufacturers expect to recover the difference by selling game titles. Giving away game titles, therefore, lessens the game-selling opportunity.

Michael Kanellos writes for News.com