Xbox Buyers to Get Two Free Games

Microsoft Corp. this holiday season will give away two games with each Xbox video game console purchase in hopes of winning more consumers in its race against Nintendo Co., maker of the rival GameCube console.

Companies rarely make money from selling consoles--indeed, Microsoft is reportedly losing more than $100 for each console it sells. But hardware companies make up for the losses by collecting licensing fees for copies of games sold for their consoles.

As of June 30, Microsoft and Nintendo were tied with 4 million consoles shipped worldwide. Both trail far behind Sony Corp.’s PlayStation 2, with 33 million units shipped worldwide.

The Xbox bundle, which will start selling Tuesday for $199, will come with “Jet Set Radio Future” and “Sega GT 2002,” both developed by Sega Corp. It also will include a smaller controller originally made for the Japanese market.

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ALEX PHAM