Microsoft Denies Xbox is Faulty

Microsoft today denied that the Xbox, its much-hyped games console that goes on sale in the UK next week, has developed an embarrassing fault.

As competition in the games console market hots up reports from Japan, where the Xbox was launched a fortnight ago, suggested some machines scratched CD and DVD games, forcing the company to carry out urgent repairs.

The claims have been dismissed by Microsoft, who said that less than 1% of Japan buyers had complained.

It added that the light scratching did not in any way stop the machine being used or interfere with game play.

The company also denied it was carrying out repairs or having to offer customers replacements.

The games console industry is at present beset by bitter rivalries as the Microsoft Xbox prepares to go head to head with the Sony PlayStation 2, the current market leader.

Microsoft said misinformation from Japan had led to rumours that its console was being recalled and subsequent press reports about the scratching.

The Xbox is Microsoft's first venture into the lucrative games market and it hopes to sell between 4.5 million and 6 million units worldwide by the end of June. It was launched in the US in November and will go on sale in the UK on March 14 for £299.

Another threat comes from the Nintendo GameCube, which goes on sale in the UK on May 3 priced at around £150.

Anticipating the arrival of the two new competitors, Sony slashed the price of the PS2 from £299 to £199 just before Christmas.

Richard Teversham, UK head of marketing for Microsoft, said: "People want to try and find something here but the fact is less than 1% of new owners in Japan have found the machines have left scratches on their DVDs.

"The scratching is only on the edge of the disc and does not effect the game play. If it did we would have done something about it."