Microsoft will release a new videogame console in Japan in 2006, CEO Steve Ballmer stated at a press conference in Redmond recently, reports the Nihon Keizai Shimbun. He mentioned that date as part of a general discussion of the Japanese games market, where Microsoft apparently remains committed to pushing the Xbox despite weak software support and consumer demand. Microsoft also plans to develop new, unspecified services to specifically appeal to the Japanese market.

A new Microsoft console in 2006 would likely arrive second or third in the next generation of game systems. Nintendo, which has stated that it will be the first to market, is reportedly aiming for 2005, while a 2005 or 2006 date has frequently arisen in discussions of Sony's next system.

In reference to the aging but still persistent rumors that Microsoft plans to invest in Sega, or buy the publisher entirely, Ballmer reiterated that the company has no such plans.