Microsoft Throws Its Hat Into Consumer Electronics Ring

Microsoft (MSFT Quote) is jumping into the dogfight for the lucrative home entertainment market with its soon-to-be-released Xbox video game console. The company will begin to bare its fangs Saturday when Chairman Bill Gates unveils the super-charged video box at the Consumer Electronics Show in Las Vegas.

Gates will give the first live demonstration of the Xbox, scheduled to be released in the fall. Until now, company watchers have been skeptical that the software giant would release the product on time because it's notorious for launching new technologies late.

"The demo is a good sign indicating that Microsoft is proceeding with their plan to get this to retailers on time," says Felicia Kantor, an analyst at Lehman Brothers, which hasn't done recent underwriting for the company. ...