Halo 3 is still one week away but the hype surrounding its launch has started to build up already. For Microsoft Halo 3 is not just the next title from a widely-acclaimed franchise but the game that will help the company to boost the sales its almost two-years old gaming console. And maybe Halo 3 will even help Microsoft to gain back from Nintendo its position as the leader of the gaming console.

The latest results released by NPD Group for August were a perfect illustration of how a game can boost the sales of a console.

During August, thanks to the release of NFL 08 and BioShock Microsoft has raised the sales of its gaming platform with 100,000 units. The Redmond company sold 276,700 compared to only 170,000 units in July. NFL 08 and BioShock were also the first and the third best-selling games with 896,600 and respectively 490,900 units.

And in this context, imagine what Halo 3 will do for the sales. Although it is still hard to believe that the launch of Halo 3 will shatter the record established by The Burning Crusade (World of Warcraft’s expansion, launched on January 17 this year) which has sold more than 2.4 million copies in the first 24 hours of availability, it’s clear that the Xbox 360 exclusive will be by far the most successful launch for the platform.

Microsoft announced already that preorders in North America for the highly anticipated title have exceeded the 1 million milestone. Best Buy, GameStop and a bunch of other major MS partners for the H3 launch have registered combined pre-orders that top 1 million units, which is certainly a premiere for the Xbox platform, and probably a record for other gaming platforms too.

Last week, Wedbush Morgan's analyst Michael Pachter predicted that Halo 3 sales will top 3 million in 12 days. “We expect the game to be a driver of console sales, and believe that Microsoft’s unit sales for the 360 could exceed 400,000 in September, the highest figure for a non-holiday month since launch”, he wrote in a research note.

GamerMetrics analyst Nick Williams estimated Halo 3 will sell more than 4 million games in the United States in two months time.

Halo 3 underwent a beta test which proved that the game will be a success. The limited beta test of the game has concluded in June and more than 820,000 users have tried the new title. According to Microsoft, the participants totaled 12 million hours of online gameplay, equivalent to more than 1,400 years of continuous play by one person.

Also during the test period that started via Xbox LIVE on May 16 350 terabytes of data were downloaded from Xbox LIVE, equivalent to more than 82 million digital music downloads from the Internet.

Shane Kim, head of Microsoft Game Studios, believes that Halo 3 will be one of three main entertainment events this year. "I believe this is going to be one of the three biggest consumer entertainment events of the year, along with Spider-Man 3 and the new Harry Potter book. This is going to be a huge competitive advantage for us. Sony has nothing like it", he said.

Billy Pidgeon, game industry analyst for IDC Group, said that Halo 3 is very important for Microsoft’s strategy to promote its gaming console as an entertainment hub.

"Halo 3 is vitally important for the Xbox 360, which is important for Microsoft as a conduit into the living room," said Pidgeon, quoted by CNN. "It will certainly drive adoption of the console. There are gamers who have been waiting for Halo 3 to come out to buy a 360."

And the Microsoft’s marketing machine spares no effort in order to achieve this goal. According to Brandweek magazine Microsoft has spent $10 million in marketing of the game.

For Microsoft is important to turn Xbox 360’s division into a profitable business and Halo 3 may be the perfect occasion.

At the beginning of July, Microsoft extended the warranty period for its console to three years, due to the high failure rate (or the “red ring of death” problems)- a move which will cost the company around $1.15 billion.

Still due to the strong sales of its latest operating system and its 2007 version of Office suit Microsoft’s profits boosts despite the 1-billion-dollar charge. Also with the Halo 3 launch may be the company will compensate the money loss.

Microsoft announced a variety of new merchandise, related to its Halo 3 launch, including two new Xbox 360 Limited Edition “Halo 3” Wireless Controllers designed by Spawn and McFarlane Toys creator Todd McFarlane, as well as an Xbox 360 Limited Edition “Halo 3” Wireless Headset, which lets gamers talk with friends over Xbox LIVE.

Also a special Xbox 360 console will go on sale alongside Halo 3’s September 25 release date. The console features an authentic Spartan green and gold finish and comes with matching Xbox 360 Wireless Controller, 20GB Hard Drive, Headset, Play & Charge Kit, HDMI output and exclusive Halo 3 Gamer Pics and Theme available via Xbox Live download.

What will the other competitors come up with to deal with Microsoft's offer? Analyst Michael Pachter said it was highly possible for the company to take in consideration an even further drop in the Playstation 3’s price tag.

The price reduction boosted Sony’s sales for July, but the situation went back to normal in August when the company sold about 100,000 units. Sony officials said they were not expecting much during the holiday season and that from their point of view the real battle will begin the following year. Still, Sony cannot afford to miss another winter-season sales-market, repeating last years mistake when the Japanese firm blamed production problems for the low number of units sold in the United States.

Nintendo Wii is preparing new games and innovative devices. At E3 Expo Nintendo had announced Wii Balance Board, with a packaged Wii-Fit game/exercise program, but a release date is still to be announced. However at E3 Expo Nintendo said that Wii Fit, which will include the Balance Board, will be available in the first half of 2008, but as the company is trying to stay ahead its competitors maybe it will be released just in time for the upcoming holiday season.