Microsoft readies "Halo 3" for launch

By Franklin Paul

NEW YORK (Reuters) - Video game aficionados lined up before dawn on Monday for the midnight release of "Halo 3," the acclaimed alien shooter game that Microsoft Corp hopes will widen its lead over Sony Corp in the battle for industry dominance.

The equivalent of a new "Harry Potter" book or "Star Wars" film for the $30 billion video game industry, "Halo 3" has drawn wide praise from reviewers for its lush settings, cinematic story and breadth of features.

Positive buzz about the science-fiction game -- in which players try to save humanity from an army of aliens -- pushed Microsoft shares up as much as 3.35 percent, their biggest one-day gain since April.

Microsoft is counting on "Halo 3" to push its money-losing entertainment unit into profitability. The game is the final chapter in a trilogy that began in 2001 with the launch of the software giant's original Xbox game console.

"I was caught between buying the PlayStation 3 and Xbox 360, but there are certain games like 'Madden '08' and this one that pushed me to Xbox 360," said Darnell Jefferson, 25, who was second in line at a Best Buy store on Manhattan's Fifth Avenue.

"Halo 3" will enjoy the absence of another blockbuster game, "Grand Theft Auto IV," whose October debut has been delayed by publisher Take-Two Interactive Software Inc until the some time between February and April 2008.

Microsoft is backing its game with a marketing blitz that includes celebrity-studded midnight sales events at some 10,000 retailers across the United States.

Gaming retail chain GameStop Corp said the title set a record for advance orders, while Microsoft expects initial demand to surpass that for 2004's "Halo 2," which racked up $125 million in its first 24 hours.