MICROSOFT Corp would not back down even if the launch of its Xbox 360 video game console fails to propel it to first place in the $US25 billion ($34 billion) global market, chairman Bill Gates said overnight.

"We'll play again," Mr Gates said ahead of the Xbox 360 launch later today.
Microsoft will be the first of the main gaming console makers to sell a next-generation machine when the Xbox 360 goes on sale and aims to take the lead from Sony Corp's Playstation.

"We learned a lot in the first round. We've got a chance not just to have higher market share, but also to grow the size of this market substantially," Mr Gates said.

The Microsoft co-founder said the Xbox 360 would be better than the next-generation PlayStation 3 console from Sony.

Sony's PlayStation 2 is estimated to capture about 70 per cent of the global game-console market.

"In terms of how we've balanced technology in the machine, we feel certain we've done a better job than Sony," he said.
"You won't really know that until a year from now, when people are talking about how the games on our machines compare to the games on Sony's machines," Mr Gates said.

Microsoft says highlights of its new machine include high-definition graphics, online game play and Web chat, as well as the ability to connect to music players and cameras.

Microsoft entered the console market in 2001 and grabbed the No. 2 position despite significant handicaps.

Sony's PlayStation 2 had a one-year running start and consumers were sceptical that the maker of the ubiquitous Windows software would do video games well or commit to a new market.

"We had no chance of being No. 1 there," Mr Gates said.

In almost five years, Microsoft has spent nearly $US5 billion on the Xbox, analysts estimate, making it one of Microsoft's biggest bets in recent years.

The Xbox 360 will be in stores before Sony's PlayStation 3 and Nintendo Co's Revolution, which are both expected next year, leaving Microsoft free of competition for several months.

The Xbox 360 is more powerful than its predecessor and shows games in high-definition.

Early reviewers have talked up its graphics, and many gamers said they were willing to wait a year or so to see what game developers can do with the new technology.

Gamers have also embraced the Xbox Live online service, which allows a team of players in one living room to compete against an equally matched team elsewhere.

The service also provides downloads of classic games, which appeals to older gamers and women.