Microsoft Launches New Xbox 360 Console for Families

New console includes five games, wireless
controller and storage to save games — all for the incredible value of $279.99

REDMOND, Wash. — Oct. 22, 2007 — Just in time for
holiday, Microsoft Corp. today released a new Xbox 360® console that
delivers games and content to everyone in the family for an incredible value of
$279.99 (U.S. estimated retail price)*. Available in stores beginning today,
Xbox 360 Arcade console is the first Xbox 360 console to include five
family-friendly games, a wireless controller, a high-definition multimedia
interface (HDMI) connection to enable high-definition output if desired and 256
MB of memory useful for storing games and entertainment content. At $279.99,
the Xbox 360 Arcade console will include five best-selling games: “PAC-MAN
Championship Edition” (NAMCO BANDAI Games America Inc.), “Uno” (Carbonated
Games), “Luxor 2” (MumboJumbo), “Boom Boom Rocket” (Electronic Arts Inc.) and
“Feeding Frenzy” (Sprout Games).

“As families gather together this holiday, it’s the perfect
time to launch a new low-priced, high-value Xbox 360 that plays games, TV shows
and music for everyone to enjoy,” said Jeff Bell, corporate vice president of
global marketing, Interactive Entertainment Business at Microsoft. “In addition
to offering an incredible all-in-one package for families to get right into the
fun, the Xbox 360 Arcade system features the industry-leading Family Settings,
which allow parents to control what their kids are watching and playing — and
we know how important that control is to families around the world.”

Karen Dodge, senior vice president and chief merchandising
officer at Toys “R” Us, added, “We are excited to offer this new gaming
experience to our customers — children and families — who can now enjoy the fun
of Xbox 360 together. Many of this holiday season’s hottest items provide
Internet connectivity, and with the online entertainment options available
through Xbox LIVE®, Xbox 360 Arcade offers families a great mix of
online content and traditional gaming in one console.”

The news of Xbox 360 Arcade comes as part of a broader
initiative by Microsoft to bring the Xbox 360 experience to families
everywhere. Microsoft also announced today that it is significantly expanding
its catalog of high- and standard-definition family fun content that is
available on demand direct to the consumer’s living room. This includes the
addition of everyone’s favorite characters such as Bugs Bunny and Daffy Duck
from Warner Bros., which will be delivering the first ever “Looney Tunes”
cartoons for download on Xbox 360, starting today. In addition, Nickelodeon is
adding three new shows to its already large library of more than 300 episodes
of TV shows on Xbox LIVE, Microsoft’s premier online gaming and entertainment
service, with the inclusion of “Blue’s Clues,” “The Backyardigans” and
“iCarly.” “SpongeBob SquarePants Underpants Slam™” (THQ Inc.) and “SHREK-N-ROLL
(Activision) games will also be available exclusively on Xbox LIVE Arcade, the
place to download games for Xbox 360 over Xbox LIVE, adding more fun for
everyone in the family.

Microsoft’s commitment to family entertainment is
complemented by the largest next-generation library of “E”- and “T”-rated
games, more than 200 in all, available at retailers nationwide this holiday,
including “BEE MOVIE™ GAME” (Activision), “Guitar Hero III®: Legends
of Rock” (Activision), “Naruto: Rise of a Ninja” (UbiSoft Entertainment),
“Scene It? Lights, Camera, Action” and “Viva Piñata®: Party

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