MICROSOFT Xbox has declared war on Sony Playstation in Singapore.

In the tussle for a bigger slice of the multi-million-dollar gaming industry, Xbox has thrown in an irresistible offer to entice PS2 owners to defect.

It is asking them to trade in their working PS2 console and get an Xbox game console and two games for just $99, or about $250 cheaper than the usual price.

This is the first such promotion.

Mr Alex Chua, Microsoft Singapore's manager for Home & Entertainment Division, told The New Paper that with the promotion, they hoped to attract new customers who could then 'experience the power of Xbox'.

'These gamers will get the opportunity to own the most powerful video game console in the market today with this very special, one-time-only deal. This promotion is done in partnership with a retailer,' he said.

This redemption exercise is limited to the first 100 customers.

Those who are interested in this offer can visit Microsoft's booth at the Sitex exhibition which opens today, until Sunday at the Singapore Expo Halls 5 and 6.

To further encourage customers to support Microsoft products, it is dangling a Volvo S40 car as the grand prize in a lucky draw.

The 'Microsoft Prize Drive' draw gives customers two chances at an instant win lucky dip with every $50 spent on selected products at Sitex.

And every $100 spent will earn you two chances at the grand draw for the Volvo.

Some of the special offers available during the exhibition include an Xbox holiday bundle with 3 games at $349.

Buyers will also get a $50 instant cashback or a free Xbox Live Starter Kit. This offer is valid for the first 500 units sold only.

Microsoft said that they will also be offering discounts of up to 30 per cent for selected Xbox game titles and also other products, including its latest wireless keyboards and intelligent mouses.