Microsoft has said it will delay the Japanese launch of its Xbox game console to February 22nd, 2002, from its planned debut late this year to ensure its success there first.
Although the delay means Microsoft will miss the key year-end shopping season in the lucrative Japanese market, analysts said the move was widely expected.
"We had expected the Xbox to appear in Japan around March, so this is not a surprise," said senior analyst at Tokyo-Mitsubishi Securities Mr Nobumasa Morimoto.
In its first foray into the hardware business and gaming industry, Microsoft is set to compete with advanced machines from Japanese rivals Sony and Nintendo.
Sony dominates the market with its PlayStation 2, and Nintendo is preparing to launch its next-generation GameCube.
The Xbox, which has a built-in hard drive and Internet capability, is carrying Microsoft's hope of breaking into the interactive home entertainment market and driving new growth.
The Xbox is Microsoft's biggest challenge in the 21st century, Mr Hirohisa Ohura, managing director of the company's Japanese unit, told a news conference.