Los Angeles, May 10: When Microsoft announced four years ago that it was getting into the video game business, skeptics questioned whether the world's largest software company could be anything but a distant second-best.
While Microsoft remains an underdog in the battle against Sony, its Xbox is gaining ground: the No. 2 game console is expected to have outsold Sony's PlayStation 2 for the first time on a monthly basis in April, boosted by a price cut that made the Xbox cheaper than the PS2.

Microsoft, observers say, has proven that its console can hold its own against the still-dominant PS2 as both companies gear up for the next-generation of hardware releases.

Besides the April sales tally, the Xbox has also enjoyed a lucky streak lately of exclusive games.

Titles like "Ninja Gaiden" and "Tom Clancy's Splinter Cell: Pandora Tomorrow" rode rave reviews to big sales, both finishing among the top five titles in sales for March, according to the NPD Group.

Microsoft has also benefited from early buzz around more exclusive Xbox games due later this year, including "Full Spectrum Warrior" and "Halo 2."


Analysts say Microsoft is now on the verge of getting an important show of support from the leading video game publisher, Electronic Arts.


EA is expected by many analysts to announce its support for Microsoft's Xbox Live online gaming service at this week's E3 video game show in Los Angeles . EA has in past balked at Xbox Live over concerns about the business model.


"Microsoft gets legitimacy through the actions of third parties and the most important third party to legitimize Microsoft is Electronic Arts, and that happens next week," said Michael Pachter, an analyst at Wedbush Morgan Securities.


It has been less than four years since Sony released the PS2 and less than three years since Microsoft and Nintendo launched their challenges, the Xbox and GameCube, respectively.

Bureau Report