Microsoft on Wednesday put a price tag on its much anticipated Xbox, turning up the heat in the video-gaming market. The software giant also introduced a handful of companies who are creating online video games for the gaming system. Microsoft's said the Xbox will be available at an estimated retail price of $299.99 (£209.74),for the US market, making it competitive with Sony's $300 price tag for the PlayStation 2. The company said the Xbox will be available in North America on Nov. 8, 2001. Companies lining up behind the Washington-based software company's gaming system include Bandai, Electronic Arts, LucasArts Entertainment, Sega Entertainment and Ubisoft. The rounding up of support is part of the posturing ahead of Xbox's long-awaited debut. Xbox will go head to head with the popular PlayStation 2, whose maker, Sony, has also been beating the drum in recent days to draw attention to its game console. On Tuesday, Sony announced alliances with America Online, to bring Internet access to its system, and with RealNetworks, to bring streaming audio and video. Among the first online games to be available on Xbox will be Sega Sports' entire 2K3 lineup, "Tony Hawk Pro Skater 3," "Unreal Championship" and "Tom Clancy's Ghost Recon." Other companies lining up behind Xbox include Acclaim Entertainment, Activision, ArtDink, Atlus Company, Capcom, Codemasters, Crave Entertainment, Eidos Interactive, FOX Interactive, Gathering of Developers, InfoGrames, Interplay Entertainment, Konami Company, Midway Games, Namco, Rage Software, Rockstar Games, Sierra On-Line, Taito, Take-Two Interactive Software, TDK Systems and THQ. Analysts had forecast the price tag to be between $249 (£174) and $299 (£209). "Microsoft has yet to provide financial targets for Xbox, other than to say that gross margins will be negative," wrote Henry Blodget, an analyst at Merrill Lynch, in a report on Wednesday morning. "This means that the more units Microsoft sells, the more money the company will lose on Xbox" at least in the short-run. Blodget addded that Microsoft's enthusiasm and massive investment in Xbox is likely to make the gaming system a "key driver" of the company's stock over the next few months. Gamespot UK has a channel devoted to the latest Xbox news, reviews and previews. Check it out here. Have your say instantly, and see what others have said. Click on the TalkBack button and go to the ZDNet News forum. Let the editors know what you think in the Mailroom. And read other letters.