Microsoft has finally launched its Xbox Live online gaming service in Asia, but it faces a challenge in the region due to the prevalence of mod chips.

Bowman, Asia Pacific general manager for Microsoft's home and entertainment division, declined to guess how many Xbox consoles in Asia are of the modified variety, saying that no definitive study had been done. However, he said that "we acknowledge that some people in Southeast Asia -- just like people in other regions where we have released Xbox Live -- have chipped consoles and will, therefore, not be able to enjoy Xbox Live or authorised aftersales service and support."

Chin Jun Fwu, programme manager of Asia-Pacific online gaming for analysts IDC also declined to speculate on the popularity of modified consoles, but admitted that software piracy is rampant. "It will be challenging for Microsoft. Southeast Asia is still immature when it comes to legal software," he said. Microsoft's Xbox Live will have a good chance of success if an online game with adult appeal becomes available, said Chin. Adults can better afford original software and subscription fees, compared with the usual teen gaming crowd, he said.