Consumers expecting to pay the $299 suggested retail price for Microsoft Corp.'s Xbox video game console may be in for some sticker shock.

Beginning next month, many retailers will be requiring customers to pay from $499 to as much as $1,200 to reserve an Xbox console that, like it or not, will come bundled with games, peripherals and warranties.

The reason: Microsoft will provide additional marketing money to merchants that agree to include the software giant's games in their bundles. That's because Microsoft's games carry higher profit margins for the Redmond, Wash., company than those published by third-party companies such as Activision Inc. and Electronic Arts Inc. The plan is angering consumers.