TORONTO, ON — Oct. 23, 2007 — Just in time for holiday, Microsoft Corp. today released a new Xbox 360® console that delivers games and content to everyone in the family for an incredible value of $299.99 (CDN estimated retail price)*. Available in stores beginning today, Xbox 360 Arcade console is the first Xbox 360 console to include five family-friendly games, a wireless controller, a high-definition multimedia interface (HDMI) connection to enable high-definition output if desired and 256 MB of memory useful for storing games and entertainment content. At $299.99 CDN, the Xbox 360 Arcade console will include five best-selling games: “PAC-MAN Championship Edition” (NAMCO BANDAI Games America Inc.), “Uno” (Carbonated Games), “Luxor 2” (MumboJumbo), “Boom Boom Rocket” (Electronic Arts Inc.) and “Feeding Frenzy” (Sprout Games).

“As families gather together this holiday, it’s the perfect time to launch a new low-priced, high-value Xbox 360 that plays games, TV shows and music for everyone to enjoy,” said Jeff Bell, corporate vice president of global marketing, Interactive Entertainment Business at Microsoft. “In addition to offering an incredible all-in-one package for families to get right into the fun, the Xbox 360 Arcade system features the industry-leading Family Settings, which allow parents to control what their kids are watching and playing — and we know how important that control is to families around the world.”

Karen Dodge, senior vice president and chief merchandising officer at Toys “R” Us, added, “We are excited to offer this new gaming experience to our customers — children and families — who can now enjoy the fun of Xbox 360 together. Many of this holiday season’s hottest items provide Internet connectivity, and with the online entertainment options available through Xbox LIVE®, Xbox 360 Arcade offers families a great mix of online content and traditional gaming in one console.”

Microsoft’s commitment to family entertainment is complemented by the largest next-generation library of “E”- and “T”-rated games, more than 200 in all, available at retailers nationwide this holiday, including “BEE MOVIE™ GAME” (Activision), “Guitar Hero III®: Legends of Rock” (Activision), “Naruto: Rise of a Ninja” (UbiSoft Entertainment), “Scene It? Lights, Camera, Action” and “Viva Piñata®: Party Animals.”

About Xbox 360
Xbox 360 is a superior video game and entertainment system delivering the best games, unique entertainment features and a unified online gaming network that revolve around gamers. Xbox 360 will have a portfolio of more than 300 games and will be available in nearly 40 countries by the end of 2007. More information can be found online at http://www.xbox.com/en-ca.

About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.