CHIBA, Japan (AP) — U.S. software giant Microsoft Corp. ventured into rival territory on Friday, showing off its much-anticipated Xbox game console in Japan, the home of competitor Sony's best-selling PlayStation 2.
Microsoft chairman Bill Gates was scheduled to reveal details Friday of the Xbox in a speech at the Tokyo Game Show, touting a smaller controller designed especially for the Japanese market.
His appearance at the show reveals how important Microsoft feels the Japanese market is to making its risky game console project a success.
The Xbox has generated considerable interest here, but has yet to convince many software makers that it is worthwhile to develop games for the system.
In a huge boost to those efforts, Microsoft announced Friday that it is forming an alliance with Japanese video game company Sega Corp. to bring future versions of Sega games to the Xbox.
Sega will create 11 new games for the Xbox, including the latest versions of "Panzer Dragoon" and "Sega GT," the companies said in a joint statement released in Tokyo.
"Having Sega on board with Xbox is a huge win for gamers around the world," said Robbie Bach, chief Xbox officer at Microsoft. "The creative artists at Sega ... will help us establish the benchmark for great Xbox gaming experiences both on and off-line."
The Xbox game console is slated for release in Japan and the United States this autumn and marks the Redmond, Washington-based software giant's first foray into the game console business.
Microsoft has said it plans to spend $500 million marketing the product.