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In a bid to boost sales of its Xbox game console, Microsoft will announce on Monday plans to invest more than $1 billion to create an online video-game service, according to a report by The New York Times.

The expected announcement comes as Xbox sales have slowed in recent months, raising questions as to whether Microsoft will be able to achieve its target of selling up to 6 million consoles by the end of June.

Microsoft's online gaming service, to be called Xbox Live, will launch during the middle part of this year, the report says.

Pay to Play

Pricing for the service is likely to be around $50 per game in addition to a $9.95 monthly subscription fee, it says. A high-speed Internet connection would also be required.

In addition to offering online games, Xbox Live will incorporate a voice-chat feature that will allow players to talk with or taunt one another while playing games, the report says.

The voice feature will include masking technology designed to conceal the identity and age of players in order to protect children online, it says.

To run the Xbox Live service, Microsoft is setting up data centers in Tokyo, Seattle, and London, the report says.

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