Microsoft sees better Xmas game business in Germany

COLOGNE, Germany (Reuters) -Microsoft Corp expects its gaming-related business in Germany to improve in the 2009 Christmas season compared with a year earlier, a company executive told Reuters on Wednesday. "Regarding our gaming business, the 2008/2009 business year was our most successful overall," said Oliver Kaltner, Microsoft's head of entertainment for Germany, in an interview at the Gamescom video games trade show in Cologne, Germany.

"With regard to the upcoming Christmas season, we are planning to grow in an anti-cyclical way and expect that it (business) will be above the 2008 level."

Microsoft does not break out sales figures for Germany in its financial reports.

The German video game industry is expected to grow 5 percent in 2009 to more than $2.9 billion, according to PricewaterhouseCoopers, bucking the economic downturn that has curbed consumer spending.

In the United States, video game equipment and software sales fell 29 percent in July.

Microsoft's peer Sony Corp on Tuesday said it would cut the retail price of its flagship PlayStation 3 console -- which competes with Microsoft's Xbox 360 and Nintendo's Wii -- to spur console sales that have lagged those of rivals.

"The price cut for the PS3 does not surprise me at all. To us, this does not matter. We sell via concepts. But should we become convinced that we have to act regarding pricing, we will do so. At the moment, however, I do not see such a need."

The cheapest version of Microsoft's Xbox costs $200. Sony on Tuesday said the price for the PS3 would be lowered to 299 euros in Europe and $299 in the United States, as of August 19.

(Reporting by Christoph Steitz)