Updated from 2:47 p.m. EST

Microsoft

(MSFT) - Get Report

made its first foray into the lucrative and popular world of video game systems Friday with the introduction of its plan for the "X-Box."

The new system, to be available in fall 2001, will take on the three leaders in the field: Japan's

Sony

(SNE) - Get Report

,

Nintendo

(NTDOY)

and

Sega Enterprises

(SEGNY)

.

Video game developers

Electronic Arts

(ERTS)

,

Konami

,

Acclaim Entertainment

(AKLM)

and

Eidos Interactive

, a unit of

Eidos

(EIDSY)

, are all interested in making games for the system, according to Microsoft.

Microsoft has established a new dedicated games division, to be overseen by Robbie Bach, vice president of the company's home and retail division.

Microsoft's shares gained 1 point, to close at 101.