It’s a long read, but Bloomberg has reported some details regarding Xbox Live in Japan. Want to know more, read on . . .
Microsoft Corp. will start a service in Japan this year allowing owners of its Xbox video-game console to play games over the Internet in an effort to boost disappointing sales of the device.

Redmond, Washington-based Microsoft said it will test the service, Xbox Live, with several Japanese Internet service providers this month and will eventually offer 47 games online. The world’s largest software maker overestimated demand for the unprofitable Xbox, which went on sale in Japan in February.

To increase sales, Microsoft plans to spend $2 billion in the next five years to promote the Xbox and Xbox Live worldwide. Microsoft lags rival Sony Corp., which already has a similar service for users of its PlayStation 2 console in Japan and plans to offer one in the U.S. in August. Investors said it will take years to build interest and sales of online games.

“I doubt online game services will be popular soon as monthly charges for users are still too expensive,” said Hideaki Kurimoto, who helps manage 300 billion yen ($2.4 billion) including Sony shares at Meiji Dresdner Asset Management Co.

Microsoft did not disclose monthly charges for the service in Japan. In April, the U.S. company lowered its sales target to between 3.5 million and 4 million consoles worldwide by the end of June from 4.5 million to 6 million planned earlier.

Sales

The company declined to provide sales figures for Japan. Research company Media Create Co. said Microsoft has sold 200,000 of the consoles in Japan, short of its initial shipment of 250,000.

“We will spend as much money and time as necessary to increase the number of Xbox users,” said Hirohisa Ohura, managing director of Microsoft in Japan. “We will not stop until we become number one.”

The new service, which will be offered by the end of the year, will let users in Japan play with others on high-speed Internet connections. The company will also offer the service in the U.S. later this year.

To spur sales, Microsoft cut Xbox’s retail price in May in the U.S. by 33 percent to $199 and by 29 percent in Japan to 24,800 yen ($199).

The Xbox was first sold in the U.S. in November and became available in Europe in March.

Sony

Microsoft is trying to dethrone Sony from its position as the No. 1 video-game console maker in Japan.

Sony’s game unit, Sony Computer Entertainment Inc., and Square Co. offer “Final Fantasy XI,” the latest version of Square’s best-selling “Final Fantasy” series of games, over a high-speed Internet access service.

Sony’s online game service is for about 10 million users of Sony’s PlayStation 2 video-game console in Japan and is available through 11 Internet access service providers such as Fujitsu Ltd.’s Nifty Corp., Sony’s Sony Communication Network Corp. and Usen Corp.

While Square charges users of its “PlayOnline” service 1,280 yen a month, total charges for the service depend on access service providers because monthly fees for Internet access vary.

Enterbrain Inc., a research company and publisher of video- game magazines, projected user costs range from about 66,600 yen a year to 94,600 yen, including the game software and a hard disk drive for PlayStation 2.

Hard Disk

The Xbox is equipped with a hard disk drive and an Ethernet modem, which are necessary to allow users to access the Internet, while PlayStation 2 users have to buy or rent the necessary equipment from Internet access service providers.

Still, playing games online hasn’t yet enjoyed the same popularity as conventional video games in part because users must buy game software and then pay an additional fee to meet other players online.

Square’s “Final Fantasy XI” is a sequel to its “Final Fantasy X,” a role-playing game with sales of more than 5 million copies worldwide in 10 months. Initial shipments of the latest version totaled 120,000 copies since its release on May 16, while about 50,000 players are members of the online service.

Nintendo Co., which makes the GameCube console, doesn’t develop games for the Internet, though the world’s second-largest video-game maker supplies Internet modems to Sega Corp. for Sega- made games available online for the GameCube.