This is a partial transcript from Your World with Neil Cavuto, November 15, 2001.

NEIL CAVUTO, HOST: The X-box has landed, probably one of the most hyped and anticipated game launches ever, hitting the Big Apple today — the lines around New York's newly christened Toys R Us to get a chance to bag a box. They're selling fast, but will they keep selling fast? X-box maker Microsoft says so. Microsoft Chairman Bill Gates is betting on it

BILL GATES, CHAIRMAN, MICROSOFT: Well, we're at 400,000 on the day of launch. And we'll be at over a million by Christmas. And that's actually more than Sony had when they came out last year. It's a pretty good number. Now, with the strength of the excitement, we'll probably have a shortage of supply. And so we apologize to people who have to wait. We'll just keep making them and make sure that everybody who wants one can get one.

CAVUTO: You know, there are many people, Mr. Gates, who look at your move on the gaming industry and say, "Oh, there he goes again. The bully is back. He dominates our work lives. Now he's trying to dominate our living rooms." What do you say to that?

GATES: Well, we're about giving people empowering tools. Obviously, the tools are a little bit different in terms of what helps you at work or what helps you do business type things vs. what is going on in the living room — but that same idea of partnering up with other companies, doing breakthrough software. And if we can make a contribution in this space, we think that's a fantastic thing.

CAVUTO: So those who are saying, though, you're trying to take over the world, what do you say?

GATES: I am building a big product — a great product. You know, people talk about how risky this business is. And I agree with them. Microsoft, with its long-term view, a vision of digital entertainment, can come in and make a contribution I think that's quite different than any other company. We're a software company. And we want people to have fun playing these games. That's what it all comes down to.

CAVUTO: Finally, Mr. Gates, I'd be remiss if I didn't try to get an update from some of those attorneys general who are not quite happy with the settlement that you scored with the Justice Department. Are you worried that an issue you thought was closed could drag on still much longer?

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GATES: Well, the federal government did a great job of bringing in its experts and making sure that the settlement covered all the issues in this court case and some extra areas where people had concerns. So it is a tough settlement, but it's one that made sense for us to sign on to. We're hopeful the other states will sign on. That would allow our industry to move ahead, get the uncertainty behind us as well as the cost of litigation. And so we don't know if they will, but we're hopeful they will. If not, the judge will find a way to drive this case to a conclusion.

CAVUTO: But you would not consider making additional concessions beyond those you've already made to some of the balking A.G.s?

GATES: Well, you know, certainly the states were part of the settlement process. And they got a chance to have input. They had a lot of influence. The settlement that we came up with was one that the federal government looked at very hard. That's going in front of a judicial review process, where there will be a determination about it being in the public interest. And so what we have got is a settlement that is appropriate. And that's what we should move forward with.

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