A deal to end the problem of Microsoft's Xbox using the same name as a small American company, has been reached according to reports.

Exact details of the deal, which will allow Microsoft to use the Xbox name for their new console, aren't known.

The problem arose after Xbox Technologies filed the name at the US Patents office more than six months before Microsoft.

Xbox Technologies will alter it's name, and drop the legal challenge that they were taking against Microsoft.

Microsofts Xbox is due for launch later this year in America, and during Spring of 2002 in the UK.