Microsoft Delays Launch of 'Halo 2'

Microsoft Corp. said "Halo 2," a key game for its Xbox console, won't be ready until early 2004, missing this year's holiday season.

"We don't want to impose any artificial deadlines for this game," Ed Fries, vice president of games for Microsoft, said in an interview at the Game Developers Conference in San Jose. "We can ship this title whenever, and it will still be huge."

The franchise, produced by the Redmond, Wash., software company's Bungie studio, played an important role in launching Microsoft's Xbox console in 2001. About a third of Xbox owners have bought a copy of the original "Halo," with Microsoft selling nearly 3 million units worldwide.

Microsoft shares rose 37 cents to $23.44 on Nasdaq.