SAN FRANCISCO (Reuters) - Microsoft Corp wants video gamers to "finish the fight" when the last chapter of its "Halo" trilogy comes out next week, but a carefully crafted merchandising strategy will make sure Master Chief lives on for years to come.

"Halo" is crucial to the success of Microsoft's Xbox video game business, which has lost billions of dollars since it was started in 2001 as a way to counter Sony Corp's growing dominance.

Hailed by some as the "Star Wars" for Generation Xbox, the "Halo" franchise has spawned a mini-empire of licensed toys, clothing and tie-ins. The game features a space marine called Master Chief trying to save humanity from an alien army known as the Covenant,

For a company expected to post $57 billion in revenue this year, such licensing deals are little more than a rounding error. Yet Microsoft is driving to make the games division profitable this fiscal year, so every penny counts.

"'Halo' merchandise is a logical way to earn some extra revenue and they are trying to collect on as many fronts as they can to turn Xbox into a profitable business," said Matt Rosoff, an analyst with Directions on Microsoft.

The most important effect of new "Halo"-branded products, however, is to make people more aware of the game.

"We make money and making money is great because this is a business. But we want long-term money that satisfies the fan base, not money today," said Steve Schrek, director of franchise development at Microsoft.

Microsoft also hopes "Halo" will help it "finish the fight" against Sony, whose PlayStation 3 console has struggled in the United States since it made its debut nearly a year ago.

SAN FRANCISCO (Reuters) - Microsoft Corp wants video gamers to "finish the fight" when the last chapter of its "Halo" trilogy comes out next week, but a carefully crafted merchandising strategy will make sure Master Chief lives on for years to come.

"Halo" is crucial to the success of Microsoft's Xbox video game business, which has lost billions of dollars since it was started in 2001 as a way to counter Sony Corp's growing dominance.

Hailed by some as the "Star Wars" for Generation Xbox, the "Halo" franchise has spawned a mini-empire of licensed toys, clothing and tie-ins. The game features a space marine called Master Chief trying to save humanity from an alien army known as the Covenant,

For a company expected to post $57 billion in revenue this year, such licensing deals are little more than a rounding error. Yet Microsoft is driving to make the games division profitable this fiscal year, so every penny counts.

"'Halo' merchandise is a logical way to earn some extra revenue and they are trying to collect on as many fronts as they can to turn Xbox into a profitable business," said Matt Rosoff, an analyst with Directions on Microsoft.

The most important effect of new "Halo"-branded products, however, is to make people more aware of the game.

"We make money and making money is great because this is a business. But we want long-term money that satisfies the fan base, not money today," said Steve Schrek, director of franchise development at Microsoft.

Microsoft also hopes "Halo" will help it "finish the fight" against Sony, whose PlayStation 3 console has struggled in the United States since it made its debut nearly a year ago.