Microsoft converts Xbox skeptic

Struggling game publisher 3DO, whose founder had been an outspoken critic of the Xbox, announced Wednesday that it signed an agreement with Microsoft to produce games for the console. "We're looking forward to bringing some of our most popular brands, as well as new original titles, to this powerful system," CEO Trip Hawkins said in a statement.

Hawkins had predicted an early demise for the Xbox before the console's launch last year, telling CNET News.com, "I will not be at all surprised if they pull the plug before the year (2002) is over." 3DO's stock has tumbled the past year amid a string of money-losing quarters, with the company recently announcing plans for an 8-for-1 reverse stock split.