Microsoft is preparing to release its first video games console, the Xbox, late next year to compete head-to-head with the PlayStation 2, Sega Dreamcast, and Nintendo GameCube. Based upon Microsoft''s savvy business dealings in the past, the Xbox is shaping up to be a worthy contender. With a hard drive, broadband capability out of the box, and some impressive technical specifications, the Xbox is a promising proposition.

　　GameSpot recently participated in a Q&A session with J Allard, general manager of Xbox, and asked him how Xbox's launch strategy is shaping up, how Microsoft plans on bringing exclusive games to the Xbox, if Square is jumping onboard, and much more.

　　GameSpot: What part of the process are you currently preparing for the Xbox launch next year?

　　J Allard: All of the gears in the machine are cranking full speed for a successful 2001 launch. We're super engaged with all of our partners and are fortunate to have so much support from them. Everyone is working very, very hard.

　　GS: When can we expect to see and play some games running on the Xbox?

　　JA: We can't wait to show off our Xbox titles, but before we do, we want to make sure that they reflect the promise of the Xbox hardware and capture the visions of the game designers.

　　GS: Sony was forced to short-ship the PlayStation 2 at launch, but it seems that consumer demand for the console has not waned. How do you assess the PS2 launch, particularly in comparison to how Microsoft intends to launch the Xbox?

　　JA: A video game console launch is an incredibly complicated endeavor. There are so many mitigating factors that are often uncontrollable. Sony has found themselves in an unfortunate place with both the US and European launches of PlayStation 2, mostly for reasons that were out of their control. As we continue to gear up for our own launch, we are being conservative with our partners in setting expectations and making promises because we know how complicated a launch is on all levels. Our biggest concern with the launch is making sure developers have enough time to deliver amazing games that push the power of Xbox. Our overall philosophy is "underpromise and overdeliver."

　　GS: Switching gears a bit, broadband gaming is a part of Microsoft's strategy with the Xbox. How successful can broadband gaming be, in the near term (the next year or two), when less than ten percent of US households have broadband connections? Is narrowband gaming a viable option in that short term?

　　JA: Our strategy for Xbox has always included broadband. My belief is that online gaming will shift from novelty to necessity during the life span of the Xbox console. While it's difficult to predict how and when this will take off, I think everyone will be surprised by how quickly this transition will happen. It will take some time for broadband to mature, but that's OK with us. Taking a big step forward like this requires patience. Today's online games are merely scratching the surface of what is possible.

　　GS: How do you see the modem and game downloads working in conjunction with the Xbox hard drive?

　　JA: It's our belief that the hard disk and online capabilities of Xbox will create opportunities to give games life beyond the retail purchase and open doors for new opportunities in game design. The hard drive is not just a massive memory card where you can store saved games, although it can be used for that. The hard drive actually adds more benefit to the game developers that are looking for new ways to extend the life of their games, whether it's through new downloadable content or online multiplayer play.

　　GS: The Xbox specs are obviously very impressive, but we all know that software is what drives console sales, particularly software that's exclusive to that console. Is part of Microsoft's strategy with the Xbox, providing exclusive content? Also, do you expect most of this exclusive content to come from inside Microsoft or third-party developers?

　　JA: It's more important for us to have a balanced portfolio than to focus solely on exclusivity. We have some great titles lined up already, like Munch's Oddysee, which will be published under the Microsoft label, but we also have exclusive title commitments from our third parties for some really cool games. To me, an "exclusive" experience that you get from the platform is just as important as buying a game that is exclusive to that platform. Xbox is all about playing the best games that look great and play even better.

　　GS: The agreement between Konami and Microsoft regarding Silent Hill and Metal Gear Solid, in particular, was an exciting one. Is development already underway on the Xbox version of Metal Gear Solid, and will the game be ready for your fall 2001 launch?

　　JA: We aren't discussing the availability of specific titles just yet, but I can say everyone on the Xbox team is really excited about Konami's deep commitment to Xbox. We're doing everything we can to provide the development kits, tools, and support they need to achieve their creative visions on Xbox. They have a very strong lineup planned. I can't wait to play some of the titles they are working on!

　　GS: Now that you have Metal Gear Solid on board, the speculation on an Xbox version of another major gaming franchise, Final Fantasy, won't go away. How do you respond to the rumors about FF XI being developed for the Xbox?

　　JA: Final Fantasy XI would definitely rock on Xbox, but we aren't making any announcements today about our relationship with Square.

　　GS: Changing subjects, is the design of the Xbox hardware complete?

　　JA: The overall design of Xbox has been done for a while now, but we have been spending our time refining the box so it not only looks kick-ass, but is easy to manufacture as well. You can expect to be able to see what Xbox looks like early next year.

　　GS: As a new player in the console market, how does Microsoft expect to generate consumer demand for the Xbox, particularly when competing with existing players such as Nintendo, Sega, and Sony?

　　JA: Gamers get excited by amazing games and exhilarating experiences. It has always been our mantra that in order to be successful with Xbox, we have to make the game developers the heroes by giving them a powerful set of tools to bring their creative visions to life.

　　GS: Here's the second part to that question: Do you think the market, in its current state, can support four consoles?

　　JA: With four console systems on the market, gamers will have more choices than ever. It is my belief that 2001 is going to mark a significant milestone in video games history. Acceptance for games as an entertainment platform is higher than ever. Technology is multitudes above what is was a few years ago. Game developers are becoming the storytellers of the future. Of course, there is a lot of speculation right now as to what console maker will be number one, but we are more focused on creating great games. We've said all along that in order to be successful, you have to have great content. That is why a huge part of our strategy is to work closely with the development community, the creative minds, to create the best games possible for the Xbox platform.