Xbox Software May Be Licensed Out

Bill Gates hinted to Japanese reporters Thursday that Microsoft might be interested in licensing the Xbox software to third parties. The move could turn the Xbox into a platform, with clones flooding the market and giving Microsoft more leverage to oust Sony's PlayStation as the dominant gaming console.

According to a Microsoft spokesperson, "the basic software" for the Xbox system would be offered. However, no formal decision has been made as of yet. The licensing agreement could be similar to the way Microsoft licenses Windows to computer makers, but Gates offered no specifics as to who may use the Xbox software.