MS Bets on Brazil to Build Xbox's Share

Microsoft is betting on Brazil as being key to boosting its Latin American sales of the Xbox 360 entertainment device, saying Thursday it plans to begin selling the consoles in the country next week. While Brazil ranks 15th in console sales, no manufacturer sells directly in the country.

Brazil is the fourth Latin American country to see the Xbox 360, behind Mexico, Chile and Colombia where the console has been on sale since earlier this year. Analysts believe there is a market for as many as 11 million consoles in the country.

The Brazilian package includes the Xbox with software in Portuguese, 20GB hard disk, wireless controller, remote control, and three games. Officially, the system would retail for 2,999 reals ($1,399 USD) although Reuters noted third-party imported systems are available for 1,600-1,800 reals ($749-$842 USD),

Games would retail for 159 reals ($74 USD) each, close to the price the games sell for here in the states. 14 launch titles are to be available, including "Gears of Wars" and "Perfect Dark Zero." Microsoft hopes that by being the first, it can maintain a market share lead in the console race.

Both the Wii and PlayStation 3 will go on sale in Brazil during the month, and Microsoft feels it is important to make sure it is first to the market in the region. Latin American games and entertainment director Daniel Cervantes said the Xbox 360's launch in Mexico and Colombia showed a doubling of market share simply by being the first console available.