Microsoft enters online gaming pact


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No. 1 software firm enters agreement with privately-held GameSpy to turn PC games into online games.

November 20, 2003: 10:14 AM EST

SEATTLE (Reuters) - Privately held gaming technology company GameSpy said that it had signed a deal with Microsoft Corp. that will help turn the software maker's personal computer games into online games.

Financial terms of the multi-year deal were not disclosed Wednesday. Under the agreement, Irvine, Calif.-based GameSpy will provide software technology that will allow Microsoft to manage and create online communities for PC-based games, including the PC version of "Halo", the blockbuster action game that debuted on Microsoft's Xbox video game console.

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Redmond, Wash.-based Microsoft said in a statement that it will focus on creating games while GameSpy "handles the mechanics of putting and keeping our games online."

That strategy is in contrast to Xbox Live, where Microsoft (MSFT: up $0.07 to $25.42, Research, Estimates) has developed much of its own technology to enable online game play for its Xbox console.

CNN

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