• On MovieTome: TRANSFORMERS 2 SPOILERS!

September 20, 2007 4:00 AM PDT

Xbox tries to get its 'Halo' back

With next week's release of Halo 3, gamers will get their chance to see just what happens to Master Chief at the end of the trilogy.

For Microsoft, it's a golden opportunity to get some positive mojo for the Xbox 360 after a summer's worth of headlines centered around quality problems that forced the company to extend the console's warranty and take a $1 billion charge.

"This is the kind of attention that we'd prefer," said Shane Kim, general manager for Microsoft's game studios.

There is little doubt the game, which goes on sale at midnight on Tuesday, will be a blockbuster release. Brokerage Wedbush Morgan predicts that Microsoft could sell 3 million copies in the product's first 12 days. The 2004 release of Halo 2 brought in $125 million in its first day, a then-record, Kim said. That's a far cry from the kind of revenue that Windows or Office generates in a quarter, but it's still some serious cash.

"Halo is one of those 'sure thing' releases for the industry," said Anita Frazier, a video game analyst at NPD Group. Microsoft has already sold out of an ultra high-end "legendary edition" that includes a Spartan helmet.

But the real question is what the broader impact of Halo will be, particularly on sales of the Xbox 360. Kim said he has talked with retailers, some of whom expect 30 percent of early Halo 3 purchasers to also take home an Xbox 360.

"We're pretty convinced that a lot of Xbox 360s are going to get sold along with copies of Halo 3," Kim said.

Wedbush Morgan predicts that, spurred by Halo, Microsoft might sell 400,000 consoles for September, the most it would have sold in any non-holiday month since its launch.

Microsoft, already outpacing Sony's PlayStation 3, hopes it can declare victory over its archrival after this holiday season. "We have a great opportunity to push them to the brink in terms of finishing behind us in this generation," Kim said.

This holiday season is seen as a critical one, with Microsoft, Sony and Nintendo all at full production.

The wild card has been the success of Nintendo's Wii, which has been outselling both rivals by a considerable margin in recent months.

Kim acknowledges Microsoft needs to become better at attracting the casual gamers who have been drawn to the Wii with its easy-to-pick-up games and intuitive motion-sensitive controller.

"We have to compete for that customer," Kim said. "There's no question about it."

While Kim didn't offer any specific plans, he said that the company doesn't plan to wait to lure some of those casual gamers over to Xbox. "That's a 'this generation' thing and not a 'next-generation' thing."

The release of Halo 3 will be a key test, though, for just how much confidence Microsoft has managed to restore with its warranty extension.

Kim said Microsoft hopes its problems are behind it.

"From everything we can tell we have been able to remove a lot of concerns and doubts in people's minds," he said.

"Halo is one of those 'sure thing' releases for the industry."
--Anita Frazier, analyst, NPD Group

Some consumers are still griping, however. One reader recently wrote in to CNET News.com earlier this month, upset that Microsoft said his Xbox's hardware problems were not covered by its warranty extension program.

Even with Halo 3's release imminent, he said, "I am seriously considering tossing this and the games and going with a different console."

Alyson Craghead, part of a group of female professional gamers known as the Frag Dolls and a Halo expert, can't wait to get her hands on Halo 3.

She took part in the beta test earlier this year. "I'm curious to see how the story ends," Craghead said. "Bungie (the Microsoft game studio behind Halo) is just so good at telling the story."

Craghead was a diehard Quake player until a friend convinced her to give Halo a try four years ago. For a while last year she was working eight hours, playing Halo 2 for eight hours and then sleeping.

She really liked the ability to play the game with others over the Internet through Xbox Live, but grew somewhat frustrated with the level of cheating. "Over the past six months to a year, there have been so many cheaters and modders," Craghead said. "It's not as fun as it was right off."

Craghead's professional game playing duties (spending 40 to 60 hours a week playing Rainbow Six Vegas) have also cut into her Halo time, but she plans to reconnect with Master Chief once the new Halo debuts.

See more CNET content tagged:
Halo 3, Microsoft Xbox, NPD Group Inc., gamer, Xbox 360

Add a Comment (Log in or register) 24 comments (Showing first 20 comments)
Got my copy reserved :)
by close5828 September 20, 2007 10:33 AM PDT
I think that H3 is going to truly be one of the last nails in Sony's 'botched release of the PS3' coffin.

I'm no fanboy of either company, but Halo has a much larger following than anything Sony has got on its roster right now. I thought Gran Turismo 4 would have been out by now, but it got scrapped and put back on the drawing board.

My PS2 is still going strong, but I think it's going to be my last Sony console. PSOne got its use...so did the PS2, but the PS3 is just a slug.

The funny thing is that I used to bag on people who had Xbox when I was into Playstation 2...my how the tables have turned.
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OMFG!!! It's bout time!
by equivacol September 20, 2007 11:45 AM PDT
I'm nearly tearing the flesh off my bones in anticipation to this games release date (please excuse the pretty picture). I've had my copy reserved since May 07!! This game and other games like: Call of Duty Modern Warfare, Splinter Cell Conviction, ect. will raise the bar over and over! 08 is looking to be a very promising year for 360 gamers. See you in multiplayer.
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MS can keep it!!
by mssoot September 21, 2007 8:56 AM PDT
I loved halo 1 but they pissed me off when the wouldn't release #2 to anything other then Vista for the PC.(I already bought XP)
So they want you to buy vista to play 2 and now buy a console to play 3
Considering the hardware problems with the Xbox360 and the fact that the PS3 hardware spec smokes it - just ain't happening.
With the ultimate price of this game MS can keep it!!
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Halo=great game on terrible hardware
by Amuro Rey September 21, 2007 10:21 AM PDT
I'm one of many 360 owners whose unit died via the Red Rings of
Death, and I do have a copy of Halo 3 pre-ordered...BUT rather
than worry about when my refub 360 will die on me while playing
Halo3, I simply sold it to my local Gamespot. I can wait until
Christmas time or afterwards to buy a PS3, I'll never trust any M$
product or service again! And sadly that includes Halo 3.
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I know what happens at the end of Halo 3..
by niceyuk September 21, 2007 12:32 PM PDT
Master Chief dies, and so does your XBox
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Mine works just fine
by close5828 September 22, 2007 9:55 AM PDT
Both my friend and I bought ours just under a year ago... no
problems. :)

While you relish in your ambivilance between the PS3 and the 360,
I'll be playing Halo 3 next Tuesday :-)

(Written on a Macbook)
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Games for Windows release?
by yngcountre September 22, 2007 1:02 PM PDT
Give gamers a real reason to "upgrade" to Vista. Releasing Halo 2 as brand new and as a Vista-only release is a slap in the face and testifies to how far behind Microsoft is for supporting gaming on their own platform. Perhaps the framerates on Bungee's games are much lower on Vista vs. XP, like most other first person shooters available.
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I might get Halo 3
by darthduke September 23, 2007 5:52 PM PDT
If they release Halo 2 and Halo 3 for Windows XP. I'm not buying Vista yet for any reason. Not until they figure all the driver and compatibility issues out. I won't play Halo part anything 1, 2 or 3 on an Xbox or Xbox 360 anymore because the control system stinks for a lefty. I get killed so much playing with a controller compared to a keyboard and mouse. The way they mapped the looking and moving on the thumbsticks is too confusing for me. Why couldn't they let you customize the controls like so many other games do? I do love the way Bungie made the aliens and the voice acting is better than your average shooter.
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I'd Love To Get This Game ...
by Hardrada September 24, 2007 5:29 PM PDT
... but my 360 died the red ring of death last week and I'm out of
commission during what is arguably the biggest game launch ever,
not just for the 360.

Hopefully I'll have a working 360 by November.
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