Microsoft has announced a deal with Marvel Enterprises to develop an advanced online game based on Marvel's well-known cast of comic book characters.

Last month, Sony struck a deal to make a game based on characters from Time Warner's DC Comics unit, Marvel's nemesis reports New York Times

Microsoft plans to release its new game console, the Xbox 360, later this year, and Sony plans to release its new PlayStation 3 in 2006. Each new console will be able to support advanced massively multiplayer games.

Tim Rothwell, president of Marvel's consumer media group, said his company and Microsoft hoped to release their new game in 2008.