Methodology 2013 Front End Process Tentpole Idea (1 or More), e.g. Kinect, Cloud Rendering, Glasses

Value Proposition (i.e. benefit/utility and Consumer Developer Operator OEM competitive differentiation)

Signature Experiences (i.e. unified perspective of the Signature Experience 1 Signature Experience 2 Signature Experience 3 Signature Experience 4 desired consumer flow)

HW/Content/Services H/W Platform Content Service Platform Cross Platform Platform Requirements Requirements Requirements Requirements Requirements

Engineering Specifications/ Hardware Content Portfolio/Genres Cloud Cross Screen Content Portfolio Specifications Plans Infrastructure/Services Architecture 2013 Overview CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY Why do we need a next gen in 2013?

Kinect V1

Xbox 360

Business Needs and Competitive Threats Xbox 360 Limitations • Gen 7 (Xbox 360) console business will decline in • No full fidelity AAA Games + Kinect V1 sensor 2013. • Will not support full range of XTV platform • New threats from Apple (AppleTV) and Google scenarios (e.g. 1080p video + Video Chat + (Google TV). HTML5 Apps)

• Gen 8 consoles will launch from Sony/Nintendo • Lacking modern entertainment capabilities (e.g. (CY 2012-CY 2013). Blu-ray, Native 3D output, 2x1080p in/out)

• Can’t run “always on”/low power states

• Can’t run multiplexed or concurrent applications and services

4 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY What are the Opportunities for a Next-Gen Xbox?

Modern Entertainment Competitive Appeal to Broad Audiences Scale The Business Box Differentiation  Blu-ray  Next-Gen AAA games  Full XTV support (i.e.  Embedded platform (4x-6x > Xbox 360) linear TV, TV apps, DVR, architecture (unified  Native 3D & Flexible Always on) hardware portfolio) Video  Next-Gen Sensors (Kinect output/Compositing V2, Glasses)  Online Content (Netflix, • Console WebApps/Content/Svcs)  Video Acceleration (2xHD  Exclusive 720 content and • STB video dec, 1xHD enc) experiences  Video/Music Marketplace • Embedded TVs  Multiple Power States  Concurrent  Media Hub apps/scenarios (i.e. • Phones • Full Power multiplex/concurrent  A/V form factor • Media Playback apps) • Slates • Idle  Quiet. Cool. Green. • Streaming • Glasses • Standby

5 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY What is the IEB 2013 Consumer Offering?

Xbox 720

Kinect V2

Hardware Content Services  Xbox 720  Core Titles  New Dashboard - 4x-6x Games >Xbox 360 - The best core content - NextGen interface (NUI - Full XTV Support (Halo, Fable, GOW, etc) enabled) - ODD (Blu-ray, CD/DVD)  Broad Gaming  NextGen Service - Online/Web content - Kinect Titles (Kinect Experiences Sports, Kinectimals, New - Exclusive to Xbox 720  Kinect V2 Sensor genres) - Better 3D Play Space (closer, wider, deeper)  Linear TV - Improved Voice Rec. - Bring your own service - OTT video service - 4 Player tracking - Dedicated Processing  HD/3D Movies - Improved HD RGB Cam. - Video Marketplace - Blu Ray  XTV Applications - TV App Store

6 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY When: Xbox 720 versus the competition

• PRODUCT: Apple TV – next generation • PRICING: $99 (just announced and in market) • PRODUCT: ONLIVE Micro Console (announced) • KEY FEATURES: Streaming, HD, Rent all iTunes • PRICING: $4.95/Month+Games.Console Est Content + Netflix. Small, Cool and Quiet (no fan), and <$99 cheap. • KEY FEATURES: AAA Games, Instant Access, • VALUE PROP: 3Screen Synchronized Media. Works Multi-Player w/your iPxxx • VALUE PROP: AAA Gaming For Less (initial )$

HOLIDAY: 2010 HOLIDAY: 2011 HOLIDAY: 2012 HOLIDAY: 2013 [KINECT] [KINECT for CORE] [XTV on 360] [XBOX 720 + KINECT v.2]

• PRODUCT: Google TV (Announced Android OS • PRODUCT: Wii2 (heavily • PRODUCT: PS4 (Speculation) Extension) rumored/blogged) • PRICING: <$399 (historical • PRICING: Free to Consumer. Free to Partner. • PRICING: <$249 (historical assumption) assump.) • KEY FEATURES: Search, H.264, Adobe Flash, Full • KEY FEATURES: HD, Digital Dist, Local • KEY FEATURES: 3D, BluRay, Browser Storage, NUI GoogleTV • VALUE PROP: Simplified EPG: broadcast + • VALUE PROP: HD Video + Accessible • VALUE PROP: Tech Forward. All- internet Gaming. in-One

7 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY Xbox 720 Overview

Note: Kinect V2 will be an incremental Kinect V2 Xbox 720 (6x Performance) improvement over V1 • Improved Voice Recognition • Higher accuracy vs • Better 3D Play Space System Pool App Pool Kinect V1 recognition (closer, wider, Native XTV/Video STB Dedicated resources for next • Stereo imaging vs deeper) mono V1/V2 Kinect Sensor Processing gen gaming • Four Player concurrent Connectivity for Dedicated resources for Xbox tracking Glasses/Sensors/Peripherals 360 gaming (HW) • Dedicated HW Processing

• Better HD RGB Camera True 1080p and Full 3D

8 How will we do it - Yukon Architecture Snapshot

Full Featured system

Core architecture “Always On”

CPU Cores Video/Audio Accel 6-8x ARM/X86 @ 2GHz EDRAM CPU Core 1xCPU Eagle @ Core 2GHz 2HD Dec, 1HD Enc, DSP, XMA >32MB 2x ARM/X86 @ 2GHz GPU Video Output 64ALU @ 1GHz Memory GPU Flexible Resize / Compositing / 3D 48ALU @ 500MHz Application 4GB, 128bit DDR4 NUI Offload QoS for App Pool System Skeletal Tracking Accel. CPU Cores Base IO 3x PPC @ 3.2GHz Mass FLASH Storage MLC Security System USB3.0, HDMI, DisplayPort, GigE, Back-Compat PCI-E, SATA, 802.11n

Device Specific IO Core system designed to be scalable in Flash Cache Storage frequency / number of cores HSDPA, WiMAX, W-HDMI, ATSC, SLC ODD, HDD DisplayPort, LVDS

Perf Target System Cost Process SOC Power System Power SOC Cost Standby Power (x360) (COGS)

22nm SOI/ ~8x ~50W ~120W ~$50 ~$225 <500mW (SOC) 28nm G How will we do it - Key Hardware Features

Licensable architecture (both for incoming and outgoing licensing)

Power consumption optimized architecture ( “always-on” operation, low power media playback)

Binary compatibility for title through cost reductions (10yr lifecycle)

Support for alternate form factors / devices with different total system feature set

Split Application/System Resources: Allows Title compatibility through cost reductions and different device types

Modular design to facilitate SKU updates later in lifecycle

Latest Core Technologies: DX11.1+, 3DTV

Updated Security Architecture: Apply learning from Xbox360

Dedicated Video/Audio Engines (decode, encode, transcode)

Embedded Memory: eDRAM, option for eSRAM

Flexible IO: Devices change over time and different form factors. Likely 2x2 802.11n WiFi, USB3, GigE (WakeOnLan), SATA

Coherency: All devices (GPU/IO/CODECs/etc.) go through MMU, can be coherent with CPU

9/24 Agenda

Agenda

2011-2015 Consumer Xbox 720 Developer Unique TV Operator Experiences OEM The Road Ahead 2011 – 2015 Fortaleza Glasses [Cell Radio/4G] The Road to Fortaleza Revolution in Mobile 2015

Fortaleza Glasses [Wifi] Revolution in Living Room

2014 Xbox 720 and Kinect V2 launches. One Box. Input 1. 2015

2013

XTV Pay TV service launches on Xbox 360, Phone and PC

2012

TV App Platform launches on Xbox experiences served up Xbox 360, Phone and PC from the cloud. Instantly on any screen.

2011

14 Summary of Top Level Consumer Benefits and Positioning 2011 2012 2013 2014 2015

Consumer Best Games and World Class TV and Web Next Generation Interact with the world in a Latest and greatest Xbox Entertainment. revolutionary way. experiences. Positioning Entertainment for Everyone Entertainment on the Xbox

in the family. 360 One Box. Input 1. See for yourself. Instantly on any screen.

High definition games and Next Generation TV/Web The Only box you need for Breakthrough Heads up and Enjoy premium experiences entertainment platform for on your Xbox 360. New premium living room Hands Free Device on existing or inexpensive

all consumers. Haptic controller. entertainment hardware. Hardware

Seamless integration of the Enjoy great physical/social Control your TV experiences Natural Input that adapts to Enhance your experiences digital world with the games solo or with a friend. via Gesture, Voice and Touch you and your world with innovative local sensors

physical world

Sensors

Broad entertainment Best games for the core and Access to the latest and portfolio (Linear TV, Apps, Exclusive Next Generation Contextual applications and greatest experiences broad. New Hero/exclusive Hero Content, Web Content) Games and Transmedia content. Begin our TV story. experiences for your life. without upgrading Content/ Two way interactive Experiences

Transmedia hardware applications

Personalization Services (New

Enjoy multiple experiences Instant on Experiences Deliver great TV Guide, Recommendations, Real time information on at a time. Mix and match Everywhere. Access your experiences. New Live Tiers) services based on your people, places and objects. entire Entertainment

Services One Unified Service. Consume one experience at a needs. library.

time.

XBL on Windows Phone. Synchronized Web Synchronized Rich Client Largest and most immersive Enjoy the Complete Xbox XBL on Windows. Transmedia Experiences experiences across your TV, screen, in the living room experience, Any Time, Any

3 Screen 3 across your TV, Phone and PC Where, Any Screen. XBL on Console. Phone and PC and on the go. 2013 Console Value Proposition The ONLY box you need for premium living room entertainment.

• The BEST: • Gaming • Next Gen TV (full XTV support) • Physical Media (Blu-ray, CD, DVD) • Online experiences • Whole Home DVR: • Record in the background and serve up to any device in the household • Remoting Server: • Stream and play your AAA games remotely to any device • Designed for your living room: • Sophisticated, silent, always on, green device Natural Input that adapts to YOU and YOUR WORLD

• Play with your entire family: • Supports four player full body tracking

• Adapts to you: • Play seated or standing

• Adapts to your world: • Don’t rearrange your living room, Kinect can see your living room better than ever Exclusive Next Generation Games and Transmedia Experiences

• The Best Content: • Get all the latest and greatest content and genres (Halo, Fable, GOW, Edutainment etc.) • Next Generation Experiences: • The most realistic games combining core AAA content, live video streams and rich meta-data in “real-time • Concurrent Experiences: • Enjoy multiple experiences at once. Mix and match based on your needs (e.g. watch football scores with an NFL ticker as you play Gears of War 5) Synchronized Rich Client experiences across your TV, Phone and PC

• Gaming companions: • Leverage available screens to enhance primary gameplay. E.g. privately select your play on your personal screen and watch the result on the big screen. • TV companions: • Learn more about an actor on screen or where to buy the dress she is wearing without interrupting your viewing experience • Play, Pause, Resume: • Start watching on one screen, pause and pick up on another, pause again and return to primary screen. All perfectly synchronized. Move experiences seamlessly across devices.

CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY

2013 Audience Value Proposition

21 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY Xbox 720 Value Proposition

Consumer Developer Operator OEM • The only box you • Amplify your • Acquire, engage • Differentiate your need for creativity and and monetize offerings and premium living profit with reach, high ARPU deliver room differentiation customers with integrated entertainment and best in class differentiated product tools. experiences. portfolios. Drive new service revenue streams.

22 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY Consumers: The ONLY box you need for premium living room entertainment

All Your Entertainment. Natural Input that Adapts Exclusive NextGen Games Synchronized Across One Box. to You and Your World and Transmedia Devices

The best TV, gaming, BluRay Kinect sees your living room The latest and greatest next Use your phone, slate or PC and online experiences on better than ever which generation content. The to enhance primary game one box - designed for means there’s no need to most realistic games play or learn more about your living room. Enjoy in re-arrange furniture. Play combining AAA content, what you’re watching on TV. your living room or seated or standing with live video streams and rich Start watching on any anywhere in your home. your entire family. meta-data in real-time. screen - pause - resume on Enjoy multiple experiences another. at once or on their own. .

23 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY Developers: Amplify your creativity and profit with reach, differentiation and best-in-class tools

Target Multiple Platforms Kinect with More Manage Your Franchise More Ways To Make More Money New tools that make it A unified Windows 8 foundation makes it easier easier to create captivating Build high fidelity, Flexible monetization to build integrated differentiated experiences cross medium and cross options for your offerings. applications across Xbox, with motion based games screen (i.e., transmedia) From code to 100’s of PC, and Windows Phone scenarios. millions of customers with environments. for up to 4 people. Real time consumer no hassle. Easier to port applications across devices. analytics.

24 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY Operators: Acquire, engage and monetize high ARPU customers with differentiated experiences. Real time analytics for what your customers want.

SUBS ARPU

CHURN

Acquire More Customers Exclusive Experiences Know Your Customers Better Increase Subs and reduce SAC Minimize Churn with innovative Increase ARPU by giving your by leveraging a global install and differentiated experiences customers what they want. base of Xbox 360/720, Windows customized for your service. Increased analytics for targeting Phones, PCs and an expanded and a platform to deliver the set of CE devices (including your best in class 3 screen experience. STB). .

25 CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY OEMs: Differentiate your offerings to sell more. Build integrated product portfolios and drive new service revenue streams.

Differentiate Your Increase Profitability Build a Unified Best of Xbox Live Offerings Ecosytem

Attract more customers by Leverage differentiated Increase customer lifetime Connect to the best value creating more compelling experiences for premium value by selling additional added entertainment experiences available only pricing. Increase revenue devices. A common services, application marketplace and leverage on your devices sources with our platform architecture allows you to world class content creator create a portfolio of unified platforms devices

26 2013 Signature Experiences 2013 Experience Ideation Goals

2013 Should NOT be possible on the Xbox 360 + Kinect V1 experiences must ONLY be possible Should NOT be directly possible on current gen competitor platforms on the 720 (i.e. Wii, PS3 + Move, Apple TV, Google TV, etc.). architecture Experiences should NOT pick any obvious competitor “next gen” scenarios (based on their observed strategy/trajectory), unless we think we can do something differentiated/superior/unique.

Should NOT require glasses or cloud processing. Those will be layered in post 2013. Next Generation Kinect Gaming

A new more accurate Kinect sensor with dedicated application and system resources enables a whole new generation of Kinect experiences. Experience full fidelity next generation graphics with a full body high precision sensor. Simultaneous Four Person Play

Play together with the whole family. Kinect v2 means better playspace recognition, no controller required and everyone playing together. Feel the Experience with Props

Feeling is believing. Feel the crack of the bat, the kick of the rifle or the shake of the wheel as you speed through the turn. All Your Entertainment. Input One.

Simplify your world with one box that delivers all your entertainment, including next generation gaming, linear TV, movies, music, applications and more. Transmedia Gaming and Entertainment

With all your entertainment brought together, its easy to create and gaming and video for completely new and innovative experiences that break down the walls between TV, movies and gaming. Watch and play a match of Tiger at St. Andrews and see his shots inserted in real time in your game experiences. Transmedia Games and Linear TV

New entertainment experiences with multiple TV streams incorporated into a single Game environment, e.g. enjoy your virtual Sports Bar with your Fantasy Football league. http://gamehints.com/braid

Transmedia Applications You Control Full access to media and apps allow the consumer to control their transmedia experience. Call up related content like game hints or pull up your fantasy league ticker while playing Gears of War. Media Hub

Record TV in the background and serve up to any device in the household. Stream your personal videos, music, photos and more and play them back from any device. Start and play your favorite Xbox games from other devices like phones and PCs with RemoteFX technology. PC/Phone/Slate as companion devices

Your entertainment keeps getting better with Xbox 720 by instantly expanding the experience to all your companion devices. Your phone, laptop, slate are seamlessly integrated into 720 experiences. Pause and Play Across Devices

Take your entertainment everywhere. Start on one screen but instantly pause and play it again from any other device makes it best way to enjoy your TV, movies and music when you’re on the go. Cloud Value Proposition 2015 Enjoy premium experiences on existing or inexpensive hardware

• Access to the Latest and Greatest; • No New Hardware Required Access to the latest and greatest experiences without upgrading hardware

• Never need to upgrade hardware again. Instant on Experiences Everywhere. Access your entire entertainment library

• All your entertainment served up from the cloud. • Enjoy instant access to Xbox experiences, anywhere, anytime. Enjoy the Complete Xbox experience, Any Time, Any Where, Any Screen.

• Cloud serves up full immersion experiences everywhere. • The game is all around you in the real world. Play. Pause. Resume. Across devices

• Start watching on one screen, pause and pick up on another, pause again and return to primary screen. • All perfectly synchronized.

Business Model

Business Model Considerations Launch Price Point -$299 (with Kinect V2) Lifecycle -10 year lifecycle with >100 MM lifetime units Profitability -GM positive every year of the lifecycle SKU strategy -Flexibility to support multiple SKUS/Config over lifetime

Appendix IEB Product Roadmap and Strategy 2011 2012 2013 2014 2015

1. Broaden Xbox appeal to new audiences 1. Launch Xbox Pay TV service (New B2B 1. Launch Next Gen Xbox 720 + Kinect V2 1. Drive Living Room disruption via 1. Drive mobile disruption via “always via Kinect experiences Distribution Channel) on 3 screens Sensor for core and broad audiences “Kinect Glasses” experiences connected” Glasses Business 2. Drive Profitable 360 EOL (Console, 2. Launch Low Cost Xbox 360 (Xbox 361) 2. Deliver next-gen/720 Transmedia 2. Drive XTV distribution via low cost 2. Cloud Rendering Platform for gaming, Games, Services) 3. Solve Home Networking + Content content and services embedded Xbox solutions (TVs, STBs, video and apps. Strategy 3. Launch Xbox Content Creator Platform Passthrough 3. Drive “embedded XTV” into Phones and Slates) 3. Deliver “instant on, ambient” Xbox and TV App Store (XTV) STBs/Embedded TVs experiences to any screen, any where

1. HTML5 Webstack on Xbox 360 1. Xbox 361: Low cost Xbox 360 1. 720: > 6x perf + 360 back compat. 1. Kinect Glasses: New glasses 1. Cloud Rendering Platform + Micro

2. NUI Remote for TV experiences Always on, low power, green. delivering ambient experiences Console 3. HD Homerun + HDMI Pass Through 2. “Full” XTV Platform Support 2. New Xbox Embedded SKUs (Phone, Tablet) + Home Networking 3. Transmedia 720 architecture

Platform 4. Embeddable architecture (TV, STB)

1. Kinect V1 (Mono vision/depth, i.e. 1. Kinect V1 (Mono vision/depth, i.e. 1. Kinect V2 (K2): (Stereo sensors, i.e. 1. Kinect Glasses + Band (Living 1. Kinect Glasses + Phone (3G/4G)

single camera/microphone) single camera/microphone) two cameras/microphones) Room) Sensors

1. Games for core and broad (Kinect) 1. Games for core and broad (Kinect) 1. 1st and 3rd Party Games (launch 1. 1st and 3rd Party Content for 1. 1st and 3rd Party Content for 2. TV Apps 2. XTV Pay TV Service: Full Screen TV portfolio/gaming) for core/broad Glasses Glasses Mobile 3. Hulu + Web/OTT content @1080P, Overlays (VC +Full 2. Simulcast Transmedia architecture 2. Screen Zero Transmedia Applications/Entertainment 4. New Hero 1st Party Experiences Screen) @720P on 720 console (Consumer

Content/ st

Transmedia 5. Simple Transmedia Experiences 3. Hero 1 Party Content controlled) (No native platform support) 4. Additional Web/OTT content

1. Scotch/XTV Apps Platform 1. New 360 dashboard 1. New 720 Guide 1. Glasses Appstore 1. Wideband connected glasses Services for Xbox 360, Phone and 2. Social and Recommendation services PC. Engine. 2. TV App Marketplace

3. New Live Tiers Services

1. Synchronized cross screen/device 1. Kinect Glasses create on the 1. Linear/Pay TV content delivered to 1. Companion screens provide 1. Kinect Glasses creates “Screen

TV experiences via Scotch platform 3 screens. input/output capabilities Zero” Transscreen experiences go/location aware experiences 3 Screen 3 Full Consumer Benefits and Positioning 2011 2012 2013 2014 2015 Instant access to Xbox Consumer Best Games and World Class TV Next Generation Interact with the world in a experiences. Entertainment for Everyone Entertainment on the Xbox Entertainment. revolutionary way. Positioning Any Time, Any Where, in the family. 360 One Box. Input 1. See for yourself. Any Screen. Xbox 720: The only platform Xbox 361: A new low cost Xbox Xbox 720: “The” entertainment box Enjoy instant access to Xbox Xbox 360 is the only platform 360 for every person and room – the only box you need for next providing next generation providing innovative, high quality experiences, anywhere, anytime. in your house. gen gaming and entertainment. “ambient” (natural input/output) Xbox “ambient” (natural AAA games, entertainment and XTV: Next gen TV experiences, Enjoy XTV entertainment on STB’s living room entertainment input/output) experiences, now applications for all consumers. Platform only available on the Xbox 360. and TVs. experiences. available on the go. Enjoy great physical/social Control your TV/Application Kinect V2 understands your Full immersion entertainment Full immersion experiences on games solo or with a friend. experiences via gesture, voice room and you better. experiences in the living room. the go. No controllers required. and touch. Your whole family can now play The game has broken out of the The game is all around you in

together. screen and is all around you. the real world.

Sensors

The best games for the core and “All in One” Entertainment The best Next Generation Games Natural input/output ambient All your entertainment served broad. (Games, Linear TV, Media, Apps) and Entertainment for the Core entertainment experiences up from the cloud. New TV/Application experiences Enriched entertainment: Enjoy and Broad, on one box. unlike anything else in the Hands free/Heads Up ambient

Content/ you can only get on the Xbox 360 two-way interactive TV High fidelity Transmedia market. experiences “on the go”. Transmedia experiences only on the Xbox 720. You are in the game.

New Live subscription tiers New Pay TV subscription offer. Next generation guide. Great games, entertainment, Instant on access to your providing user flexibility. Simplified Discovery and applications and services for entertainment. New app store providing Recommendations service. “ambient” experiences available Connected services provide interactive TV application

Services New Entertainment Guide. from Xbox Live. “real time” ambient experiences. Social TV. experiences on the go.

Synchronized cross Watch TV anywhere, anytime. Use your Phones/Slates/PCs for New “Screen Zero” Transscreen Instant access to all your screen/device gaming and TV Stop and Start your content great synchronized/companion experiences entertainment on any screen. experiences. across screens. experiences with the Xbox 720. Great On the go/location aware

3 Screen 3 Transscreen experiences Consumer Facing Messaging (In Green) 2012 2013 2014 2015

Interact with the world in a Instant access to Xbox Consumer World Class TV Entertainment on Next Generation Entertainment. revolutionary way. experiences. Any Time, Any Positioning the Xbox 360 One Box. Input 1. See for yourself. Where, Any Screen.

Next Generation TV/Web The Only box you need for Breakthrough Heads up and Hands Enjoy premium experiences on

entertainment platform premium living room entertainment Free Device existing or inexpensive hardware.

Platform A new way to enjoy TV on your All Your Entertainment. One Box. Breakthrough Heads up and Hands Access to the Latest and Greatest; Xbox 360 Free Device No New Hardware Required

Control your TV experiences via Natural Input that adapts to you and Seamless integration of the digital Enhance your experiences with

Gesture, Voice and Touch your world world with the physical world innovative local sensors

Sensors Control your TV experiences via Natural Input that adapts to you and See the world in a new way NEED CONSUMER STATEMENT Gesture, Voice and Touch your world

Broad Entertainment Portfolio: Exclusive Next Generation Games Contextual applications and Access to the latest and greatest

Linear TV, Apps, Hero Content,Web; and Transmedia Experiences experiences for your experiences without upgrading 2-way interactive TV applications hardware

Content/ Content/

Transmedia Interactive TV on your Xbox Captivating Storytelling There’s an experience for that. Never wait for your hardware to catch up

Personalized Services Rich concurrent consumption of cloud Real time information on people, Instant on Experiences. Access your

(PEG, User/Social delivered services places and objects. entire entertainment library. Recommendations, New Live Tiers)

Services Personalized Entertainment Configure your entertainment. The information you want when you All your entertainment, at your need it fingertips

Rich companion experiences across Freeflow experiences across your Largest and most immersive screen, Enjoy the Complete Xbox your TV, Phone and PC TV, Phone and PC in the living room and on the go. experience, Any Time, Any Where,

Any Screen. Screens

- Synchronized Across your TV, Play, Pause ,Resume across A big screen experience without the Anytime, Anywhere, Any Screen 3 Phone, PC devices big screen. Developer Benefits and Positioning 2011 2012 2013 2014 2015 Be part of the Cloud + Target the largest audience Deliver next generation Be part of the Leverage innovative XTV Mobile revolution. Deliver Developer and most profitable transmedia/transscreen entertainment revolution. platform for new “instant on” ambient platform for gaming and experiences at low Deliver next gen “ambient Positioning monetization opportunities. entertainment experiences entertainment. incremental cost. experiences” on the Xbox. everywhere. 720 SDK: Low dev cost for next gen

360 SDK/Toolset: Lowers dev Scotch/TV SDK: Simplifies creation New Glasses SDK: Low dev cost Glasses SDK: Low dev cost for experiences. cost of AAA/arcade titles. of interactive TV applications for building glasses experiences. building “connected” glasses Develop for an expanded Scotch/TV SDK: Simplifies Target install base of Xbox 360, Target innovative new platform. experiences on the go. addressable market of new devices creation of TV apps. Windows Phones, PCs. Platform (STB’s and TVs).

Build world class 2-Player HD Build interactive TV experiences Build high fidelity 4 person, Build next gen immersive Build heads up/hands free next games with full body gesture + with NUI (gesture, voice and concurrent motion based games. experiences that extend beyond gen immersive experiences for voice. touch). Incorporate “always available” HD the TV. Incorporate the living mobile computing. Incorporate

Kinect V2 for use in core/broad room into your storytelling. the real world into your Sensors

gaming experiences. storytelling.

Build traditional AAA Game Create rich interactive TV Build high fidelity, lifelike games Build an entire new genre of Build an entire new genre of titles. experiences with new out of reach of current platforms. “ambient” entertainment entertainment experiences to Create interactive apps that monetization opportunities. Build high fidelity Transmedia experiences that are available no revolutionize mobile

Content/ works with or alongside TV Use franchise manager tools to experiences only on the 720. where else in the market. computing. Transmedia content on the Xbox 360. build Transmedia experiences.

Leverage BI/CI services Leverage BI/CI services Leveraged unified Deliver living room experiences Deliver mobile experiences via

A/B Testing, Instant Publish, A/B Testing, Instant Publish, marketplace/service to market via the Glasses Appstore the Glasses Appstore Direct audience connection Direct audience connection your franchise’s experiences

Services (Video, games, apps, etc.).

Leverage unified scotch/service Leverage unified scotch/service Greater flexibility and tools in Leverage Kinect Glasses to Create on the go/location to build interactive TV and to build interactive TV and how you build, deliver and blend create “Screen Zero” aware Transscreen experiences gaming experiences gaming experiences your experiences across the 720 Transscreen experiences

3 Screen 3 synchronized across screens. synchronized across screens. and multiple screens. Top Level Consumer Benefits and Positioning XTV - 2012

Consumer

Positioning World Class TV Entertainment on the Xbox 360

Next Generation TV/Web entertainment platform

Platform

Control your TV experiences via Gesture, Voice and Touch

Sensors

Broad Entertainment Portfolio (Linear TV, Apps, Hero Content, Web Content)

Content/ Two way interactive TV applications Transmedia

Personalization Services (New Guide, Recommendations, New Live Tiers)

Services 360 provides single task consumption of services.

Synchronized Web Transmedia Experiences across your TV, Phone and PC 3 Screen 3 Top Level Consumer Benefits and Positioning Xbox 720 - 2013

Consumer

Positioning Next Generation Entertainment. One Box. Input 1.

The Only box you need for premium living room entertainment

Platform

Natural Input that adapts to you and your world

Sensors

Exclusive Next Generation Games and Transmedia Experiences

Content/

Transmedia

720 provides richer concurrent consumption of cloud delivered services

Services

Synchronized Rich Client experiences across your TV, Phone and PC 3 Screen 3 Top Level Consumer Benefits and Positioning Fortaleza Glasses - 2014

Consumer

Positioning Interact with the world in a revolutionary way. See for yourself.

Breakthrough Heads up and Hands Free Device

Platform

Seamless integration of the digital world with the physical world

Sensors

Contextual applications and experiences for your life.

Content/

Transmedia

Real time information on people, places and objects.

Services

Largest and most immersive screen, in the living room and on the go. 3 Screen 3 Top Level Consumer Benefits and Positioning Cloud Gaming - 2015

Consumer

Positioning Latest and greatest Xbox experiences. Instantly on any screen.

Enjoy premium experiences on existing or inexpensive hardware.

Platform

Enhance your experiences with innovative local sensors

Sensors

Access to the latest and greatest experiences without upgrading hardware

Content/

Transmedia

Instant on Experiences. Access your entire entertainment library.

Services

Enjoy the complete Xbox experience, Any Time, Any Where, Any Screen. 3 Screen 3 Additional questions to answer for Todd

Microsoft Wide Platform • What is the difference in building on non Microsoft device vs building on non microsoft (i.e. android devices)? • What is the reason people will come to Microsoft platforms?

Elaborate on the Cross Platform Benefits anywhere. • How do you articulate the difference in year one vs year four. • Vertical compatibility vs horizontal compatibility. How does it run on the old. • What are our principles. Are we going to have Android or Microsoft. What do we want to do about application versioning. • Case study for iOS, Android, Windows, Xbox, etc.

Value Propositions • Amp up the OEM stuff/Win on the OEM • Win on the content/exclusive on our platform.