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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:00,584 --> 00:00:02,419 The battle to control the entertainment pipe 2 00:00:02,503 --> 00:00:04,713 into your living room just got a bit more interesting. 3 00:00:05,047 --> 00:00:08,175 Microsoft's Xbox announcing some landmark news today 4 00:00:08,258 --> 00:00:10,385 as it moves into the media business. 5 00:00:10,511 --> 00:00:13,055 It's time for a new generation of Xbox! 6 00:00:13,138 --> 00:00:16,517 And now, Microsoft wants to appeal to more than just gamers. 7 00:00:16,600 --> 00:00:19,520 It can also control your TV and cable box and you... 8 00:00:19,603 --> 00:00:23,315 Everything from your movies to video conferencing on Skype 9 00:00:23,398 --> 00:00:24,942 to doing all kinds of things. 10 00:00:25,025 --> 00:00:29,571 Casual gaming. Television. Social, music, and video. 11 00:00:29,655 --> 00:00:33,617 The game console will transform into a next-generation entertainment hub. 12 00:00:33,700 --> 00:00:36,286 For both gamers and non-gamers alike. 13 00:00:36,370 --> 00:00:41,583 What if I told you, that going forward, our competition is not going to be 14 00:00:41,667 --> 00:00:45,921 Sony and Nintendo, but television and media. 15 00:00:46,004 --> 00:00:47,506 Oh, God. 16 00:00:48,340 --> 00:00:51,218 There's a new contender in the video game wars. 17 00:00:51,301 --> 00:00:52,469 Xbox is going to be... 18 00:00:52,553 --> 00:00:54,847 - The future. - Truly the future of video games. 19 00:00:54,930 --> 00:00:56,849 Xbox. Taking over the living room. 20 00:00:56,932 --> 00:00:59,309 Limitless connected digital entertainment. 21 00:00:59,393 --> 00:01:00,686 You guys never understood! 22 00:01:00,811 --> 00:01:03,063 The company is going to face fierce competition. 23 00:01:03,146 --> 00:01:04,690 Sniper. Nooo! 24 00:01:04,773 --> 00:01:06,316 It's a ticking time bomb. 25 00:01:06,400 --> 00:01:08,151 It makes me very nervous to actually play this for you. 26 00:01:08,235 --> 00:01:10,112 Xbox, getting a major overhaul. 27 00:01:10,195 --> 00:01:12,239 A bold vision for the future of gaming. 28 00:01:12,322 --> 00:01:14,783 It's the Xbooooooox! 29 00:01:28,881 --> 00:01:32,968 On May 21st, Microsoft will unveil its latest Xbox system. 30 00:01:33,051 --> 00:01:37,723 Xbox has been the best-selling gaming console for 27 consecutive months. 31 00:01:37,806 --> 00:01:40,017 We're expecting a slew of entertainment options 32 00:01:40,100 --> 00:01:42,561 including possibly taking over your cable box. 33 00:01:42,644 --> 00:01:46,565 And also delivering web content in easy and attractive ways. 34 00:01:46,732 --> 00:01:51,403 It was exciting to think about what a single purpose, 35 00:01:51,486 --> 00:01:54,239 dedicated entertainment console could be. 36 00:01:54,740 --> 00:01:57,784 So we picked that as a path with Xbox One. 37 00:01:57,868 --> 00:02:03,832 We wanted a broad device that touched all parts of gaming and entertainment. 38 00:02:03,916 --> 00:02:06,126 Go on. Put your hands in. 39 00:02:06,210 --> 00:02:08,837 We wanted to bring new audiences into Xbox, 40 00:02:08,962 --> 00:02:11,507 people that were outside of what traditionally was thought of 41 00:02:11,590 --> 00:02:14,343 as our core gaming audience that was really the intent at the time. 42 00:02:15,093 --> 00:02:16,512 Within the company there's always a sense 43 00:02:16,595 --> 00:02:18,055 of do more, and grow. 44 00:02:18,138 --> 00:02:22,559 But I think Don was looking for like, what's that next big leap after Kinect, 45 00:02:22,643 --> 00:02:26,188 and I think there was a sense that TV could be that thing. 46 00:02:26,271 --> 00:02:30,234 Microsoft's gaming platform is becoming a true entertainment hub. 47 00:02:30,359 --> 00:02:32,110 It just announced that for the first time, 48 00:02:32,194 --> 00:02:34,738 people are using the Xbox more for entertainment, 49 00:02:34,821 --> 00:02:37,950 TV, movies and music, than for playing video games. 50 00:02:38,033 --> 00:02:42,246 Having our team think not only about gaming, 51 00:02:42,329 --> 00:02:46,625 but television, movies, stories that lived 52 00:02:46,708 --> 00:02:50,212 inside our gaming community, was something that I believed in. 53 00:02:50,295 --> 00:02:52,256 Okay, this is an interesting idea. 54 00:02:52,548 --> 00:02:55,259 Microsoft's going to get behind linear entertainment as well. 55 00:02:55,801 --> 00:02:57,302 Xbox Entertainment Studios. 56 00:02:57,928 --> 00:03:02,182 The idea was to take Xbox the brand from gaming 57 00:03:02,266 --> 00:03:05,477 to Xbox the brand as entertainment. 58 00:03:05,561 --> 00:03:07,521 Movies, music, television. 59 00:03:07,604 --> 00:03:08,939 There was going to be a number of documentaries. 60 00:03:10,190 --> 00:03:13,777 We all had big eyes for that, it's like whoa, we're gonna go Hollywood now. 61 00:03:13,861 --> 00:03:15,779 Aaaand, action. 62 00:03:22,119 --> 00:03:25,497 After years in development, Microsoft's next generation console 63 00:03:25,581 --> 00:03:29,793 was finally ready to be unveiled at a media event codenamed Newcastle. 64 00:03:30,335 --> 00:03:35,215 Coming off the success of the Xbox 360, expectations were through the roof. 65 00:03:35,799 --> 00:03:37,134 Good morning everyone. 66 00:03:37,217 --> 00:03:40,345 On behalf of the entire team, we're thrilled to unveil 67 00:03:40,429 --> 00:03:43,557 the ultimate all-in-one home entertainment system. 68 00:03:43,640 --> 00:03:45,017 We did a stream from, 69 00:03:45,100 --> 00:03:49,062 around the world, and invited a bunch of media and influencers up to watch. 70 00:03:49,146 --> 00:03:50,564 We gathered everybody into the conference room, 71 00:03:50,647 --> 00:03:54,526 we have it streaming on our television, we're all really excited. 72 00:03:55,110 --> 00:03:57,529 Team Xbox is on a new mission. 73 00:03:57,613 --> 00:04:01,200 To become the all-in-one system for every living room. 74 00:04:01,533 --> 00:04:04,536 The place where your games, TV, and entertainment come alive. 75 00:04:04,953 --> 00:04:06,830 We're driven to build a future-proof system 76 00:04:06,914 --> 00:04:10,459 that brings together the cloud, smart devices, new content. 77 00:04:10,542 --> 00:04:13,462 We are really excited to bring the world of Halo 78 00:04:13,545 --> 00:04:16,298 to Xbox as a premium television series. 79 00:04:16,381 --> 00:04:17,799 We're sitting there listening to it the whole time, 80 00:04:18,217 --> 00:04:19,718 and I remember one of our engineers, 81 00:04:19,801 --> 00:04:22,721 said like, "They're not even talking about any of the games yet. 82 00:04:22,804 --> 00:04:24,223 Are they gonna talk about games?" 83 00:04:24,306 --> 00:04:26,642 With Kinect, we made you the controller. 84 00:04:26,725 --> 00:04:29,770 This is human control for a human experience. 85 00:04:29,853 --> 00:04:31,063 It was all about entertainment. 86 00:04:31,146 --> 00:04:35,317 Even a partnership with Steven Spielberg, and they showed a TV guide. 87 00:04:35,984 --> 00:04:38,403 At the reveal event. I mean that was really like, the vision. 88 00:04:38,487 --> 00:04:41,323 This is the beginning of truly intelligent tv. 89 00:04:41,406 --> 00:04:42,616 Xbox. 90 00:04:42,699 --> 00:04:43,784 Watch TV. 91 00:04:45,536 --> 00:04:48,455 You said television. We wanted to hear video games. 92 00:04:48,539 --> 00:04:49,957 You know, we showed a few games. 93 00:04:50,374 --> 00:04:52,626 But core gamers were left unsatisfied. 94 00:04:55,254 --> 00:04:59,633 We're all in the green room, and as each person would get offstage, 95 00:04:59,800 --> 00:05:01,426 you know, the execs in the room would ask 96 00:05:01,510 --> 00:05:05,889 what the pulse is on social and it was not good. 97 00:05:05,973 --> 00:05:07,349 This is not going well. 98 00:05:08,058 --> 00:05:09,393 This is not going well at all. 99 00:05:11,061 --> 00:05:14,815 I am really, really disappointed. 100 00:05:14,898 --> 00:05:17,025 I think I'm going to go into mourning now. 101 00:05:18,318 --> 00:05:20,279 That's how I feel about you, Xbox One. 102 00:05:20,362 --> 00:05:25,200 There were hypercuts released minutes after the initial unveiling of the Xbox. 103 00:05:25,284 --> 00:05:26,618 Watch TV. TV. 104 00:05:26,702 --> 00:05:27,786 - TV remote. - TV. 105 00:05:27,870 --> 00:05:29,663 - TV. TV. TV. - Television. 106 00:05:29,746 --> 00:05:30,956 Television. Television. 107 00:05:31,039 --> 00:05:32,207 - TV. TV. - Television. 108 00:05:32,291 --> 00:05:33,792 Television. Television. 109 00:05:33,876 --> 00:05:37,212 That was not the right way to unveil the next generation of gaming. 110 00:05:44,469 --> 00:05:45,846 Wow. 111 00:05:45,929 --> 00:05:51,643 That was the worst gaming event 112 00:05:53,020 --> 00:05:55,898 that I've ever watched, ever. 113 00:05:55,981 --> 00:05:58,859 Probably could have done a better job of reassuring people 114 00:05:58,942 --> 00:06:00,986 that we were committed to excellence in gaming. 115 00:06:01,069 --> 00:06:06,158 The response was so negative, and that was when I knew our lack of focus 116 00:06:06,241 --> 00:06:07,951 was going to hurt us with our core audience. 117 00:06:11,038 --> 00:06:12,915 I can't... I can't even start. 118 00:06:12,998 --> 00:06:19,129 The Newcastle reveal really was about showcasing the entertainment proposition 119 00:06:19,213 --> 00:06:20,756 that was going to come with the Xbox One. 120 00:06:20,839 --> 00:06:23,926 We knew that E3 coming up in a few weeks was about games, 121 00:06:24,009 --> 00:06:26,178 we'll talk about all games when we get to E3. 122 00:06:27,304 --> 00:06:29,223 In hindsight, definitely not the right decision, 123 00:06:29,306 --> 00:06:31,850 you don't tell console gamers to tune in to something 124 00:06:31,934 --> 00:06:33,393 and then not show them the games. 125 00:06:33,477 --> 00:06:37,689 The next evolution of gaming is a 126 00:06:37,773 --> 00:06:40,859 voice remote control for your television! 127 00:06:43,779 --> 00:06:47,115 The Xbox One reveal had obviously underwhelmed fans, 128 00:06:47,324 --> 00:06:51,662 but Microsoft saw an opportunity to right the ship just 3 weeks later, 129 00:06:51,870 --> 00:06:54,206 on the game industry's biggest stage. 130 00:06:54,289 --> 00:06:56,500 This is an exciting day for our teams. 131 00:06:57,125 --> 00:07:00,712 And as we've been promising, it's all about the games. 132 00:07:01,505 --> 00:07:03,674 We're excited to share with you a stunning lineup 133 00:07:03,757 --> 00:07:06,802 of world premiere gameplay and announcements. 134 00:07:07,302 --> 00:07:10,931 The ball's in Microsoft's court, and they come out and they show some games. 135 00:07:11,974 --> 00:07:14,726 And then right at the end of their press conference, 136 00:07:14,810 --> 00:07:17,563 I remember looking up at the teleprompter. 137 00:07:17,646 --> 00:07:20,357 Xbox One will launch this November 138 00:07:20,566 --> 00:07:25,070 in 21 markets around the world, at $499 in the US... 139 00:07:25,153 --> 00:07:27,531 $499. 140 00:07:28,448 --> 00:07:33,161 At the time, the ideal price point was $399. 141 00:07:33,412 --> 00:07:37,666 Anything over $399, you're in for a real struggle. 142 00:07:42,921 --> 00:07:47,217 The issue was that, with Xbox One, Don's view was the new Kinect 143 00:07:47,301 --> 00:07:49,803 was going to be required as part of the box. 144 00:07:49,887 --> 00:07:52,806 So it was no longer just a peripheral, like the original Kinect, 145 00:07:53,056 --> 00:07:54,892 now you were going to be forced to buy one. 146 00:07:54,975 --> 00:07:56,768 This is a terrible mistake. 147 00:07:56,852 --> 00:07:58,353 A huge mistake. 148 00:07:58,437 --> 00:08:00,522 It definitely caused a disconnect. 149 00:08:00,606 --> 00:08:02,983 Why are you charging me more money? I don't want this. 150 00:08:03,066 --> 00:08:05,027 Kinect had so much promise. 151 00:08:05,194 --> 00:08:10,616 It just wasn't ever going to be a thing that hardcore gamers wanted. 152 00:08:10,699 --> 00:08:13,785 Especially when it upped the price by a hundred dollars. 153 00:08:15,621 --> 00:08:16,955 Felix! 154 00:08:22,127 --> 00:08:27,674 And then, later that day, Sony announces the price of the PlayStation 4. 155 00:08:27,883 --> 00:08:34,806 I'm very proud to announce that PlayStation 4 will be available at $399. 156 00:08:37,142 --> 00:08:39,520 We were surprised by the $100 difference. 157 00:08:40,687 --> 00:08:44,983 You know. Didn't, this, like, it, that's a pretty big headwind to come back from. 158 00:08:45,067 --> 00:08:47,277 You have essentially the same hardware 159 00:08:47,361 --> 00:08:49,696 but one device is $100 cheaper... 160 00:08:49,780 --> 00:08:51,990 "Cool. I'm going to go with that one." 161 00:08:53,992 --> 00:08:56,036 And that's where they lost. 162 00:08:57,246 --> 00:09:01,500 360 set us up for being the best box for developers, 163 00:09:01,583 --> 00:09:03,460 the best box for core gamers. 164 00:09:03,836 --> 00:09:08,298 And we then flipped it around and said this isn't a dev box, 165 00:09:08,507 --> 00:09:10,300 this isn't a core-gaming box. 166 00:09:10,384 --> 00:09:12,678 This is an entertainment device. 167 00:09:12,803 --> 00:09:15,556 People didn't know what to think, they were just confused. 168 00:09:15,639 --> 00:09:18,267 You know they wanted to push into this digital future. 169 00:09:18,350 --> 00:09:20,477 The idea was, all connected, all the time. 170 00:09:20,561 --> 00:09:25,357 The console would have to be able to check in with Microsoft servers, 171 00:09:25,607 --> 00:09:27,276 or else the games wouldn't work. 172 00:09:27,359 --> 00:09:30,153 Your content is available and it's stored in the cloud. 173 00:09:30,654 --> 00:09:32,072 There were gonna be benefits to this 174 00:09:32,155 --> 00:09:35,576 but Microsoft did a bad job of messaging those benefits. 175 00:09:35,659 --> 00:09:37,536 You don't always have to be connected, 176 00:09:37,828 --> 00:09:39,955 but for a lot of things like multiplayer gaming 177 00:09:40,038 --> 00:09:43,292 or streaming content from the Internet, you're gonna need an Internet connection. 178 00:09:43,375 --> 00:09:44,710 That's, that's the world we live in. 179 00:09:45,752 --> 00:09:47,963 One of the biggest points of confusion 180 00:09:48,046 --> 00:09:50,382 was how the new always online device 181 00:09:50,507 --> 00:09:55,846 complicated the selling, trading, and gamers' biggest concern, sharing of games. 182 00:09:56,180 --> 00:09:58,557 We knew the digital age and era was coming. 183 00:09:58,682 --> 00:10:01,310 We knew it. And the original concept was, 184 00:10:01,435 --> 00:10:04,021 you were going to have to be connected to play your games. 185 00:10:04,104 --> 00:10:05,981 You're gonna play your games on your Xbox One. 186 00:10:06,064 --> 00:10:07,191 Here's a disk. 187 00:10:07,274 --> 00:10:11,028 Load it in, and you were gonna have to get a license for that disk, 188 00:10:11,236 --> 00:10:13,155 but you had to be online to buy the license. 189 00:10:13,530 --> 00:10:17,242 So it was a great way to not have people doing big downloads, 190 00:10:17,326 --> 00:10:19,161 but here's the disk, and just pass it around. 191 00:10:19,369 --> 00:10:20,996 That's it. Simple as that. 192 00:10:21,246 --> 00:10:23,332 Well, that wasn't clear. 193 00:10:23,415 --> 00:10:24,541 It seems like every single outlet 194 00:10:24,625 --> 00:10:25,876 got a slightly different statement 195 00:10:25,959 --> 00:10:28,420 - on used games. - Yep. 196 00:10:28,504 --> 00:10:29,963 You can't share games between friends. 197 00:10:30,047 --> 00:10:32,466 - You don't own the game you're buying. Yeah. 198 00:10:32,549 --> 00:10:35,344 Don't, don't pretend like you own this thing that you just paid for. 199 00:10:35,427 --> 00:10:37,346 And then, stuff got really ugly. 200 00:10:38,138 --> 00:10:42,226 Sony came out, guns blazing, with the immediate response to the Xbox One. 201 00:10:43,310 --> 00:10:45,312 This is how you share your games on PS4. 202 00:10:49,942 --> 00:10:51,193 Thanks. 203 00:10:51,276 --> 00:10:53,695 One person just hands another person a disk. 204 00:10:54,112 --> 00:10:57,783 Because you, you weren't gonna be able to do that with this always online Xbox One. 205 00:10:57,866 --> 00:10:59,034 Your game is your game. 206 00:10:59,117 --> 00:11:00,202 You own it. You can sell it. 207 00:11:00,285 --> 00:11:03,497 You can trade it in. That was, that was brutal. 208 00:11:12,589 --> 00:11:14,925 As a team you've gotta take some bets 209 00:11:15,008 --> 00:11:17,761 on things that you believe in and put that thing out. 210 00:11:18,846 --> 00:11:20,472 Clearly in hindsight it was wrong. 211 00:11:21,849 --> 00:11:26,270 People didn't want to spend $499 for a box to plug into their television to watch TV. 212 00:11:26,478 --> 00:11:28,856 They weren't wrong, Microsoft wasn't wrong 213 00:11:28,939 --> 00:11:32,484 that gamers wanted and expected more from their consoles. 214 00:11:32,693 --> 00:11:35,904 Absolutely. In fact, it was Microsoft's fault if anything. 215 00:11:35,988 --> 00:11:41,702 They were too far ahead of where their users thought they should be. 216 00:11:42,244 --> 00:11:44,872 And there was this whole backlash that they didn't expect. 217 00:11:45,998 --> 00:11:48,083 In 2013, the world wasn't ready for it. 218 00:11:48,166 --> 00:11:51,295 We got pushback from consumers, from some journalists, 219 00:11:51,628 --> 00:11:54,715 questioning whether we'd made the right choice as a company. 220 00:11:54,840 --> 00:11:58,468 It was a valid criticism, but it was a very binary choice. 221 00:11:58,552 --> 00:12:01,930 And we chose to bet on online. 222 00:12:03,849 --> 00:12:06,518 It was a dark, dark, dark, dark moment for us. 223 00:12:06,602 --> 00:12:09,521 And, ah, very, very, very painful. 224 00:12:17,654 --> 00:12:21,783 News raced around the tech blogs Monday that the man behind Microsoft's 225 00:12:21,867 --> 00:12:24,912 future console, the Xbox One, is leaving the company. 226 00:12:26,288 --> 00:12:30,709 I wish that I would have had an opportunity to stay, 227 00:12:30,918 --> 00:12:34,171 to execute on the vision and the capabilities 228 00:12:34,254 --> 00:12:38,091 that the team had created, but I ended up in the summertime 229 00:12:38,175 --> 00:12:40,219 announcing that I was going to be leaving. 230 00:12:40,302 --> 00:12:43,430 I just remember getting an email from Steve Ballmer 231 00:12:43,514 --> 00:12:45,933 that essentially said Don Mattrick has left. 232 00:12:46,016 --> 00:12:48,477 I think we all just sort of looked at each other 233 00:12:48,560 --> 00:12:51,104 and were like, "Okay so, what happens now?" 234 00:12:52,523 --> 00:12:53,690 There was no fear. 235 00:12:54,816 --> 00:12:55,901 No failure. 236 00:12:58,779 --> 00:13:00,030 But the rules have changed. 237 00:13:06,328 --> 00:13:09,540 It was a long road, and a long path from there, 238 00:13:09,748 --> 00:13:12,334 but the team didn't give up, didn't wanna quit, 239 00:13:12,417 --> 00:13:14,461 didn't feel like we couldn't overcome this, 240 00:13:14,545 --> 00:13:17,923 and, we still had to come out and deliver the console. 241 00:13:18,006 --> 00:13:21,093 Well it's here. Xbox One, finally on sale. 242 00:13:23,595 --> 00:13:25,055 - Xbox One! We had a line of people 243 00:13:25,138 --> 00:13:27,099 at the launch event, people were excited about it. 244 00:13:27,182 --> 00:13:30,477 We had kind of an early signal that maybe things were okay. 245 00:13:30,561 --> 00:13:32,688 The MBD group has revealed that Xbox One 246 00:13:32,771 --> 00:13:35,566 led console sales in December, and with its $500 price point, 247 00:13:35,649 --> 00:13:38,902 the Xbox One led annual hardware sales on a dollars basis. 248 00:13:40,153 --> 00:13:43,073 But, by April, we were outsold six- 249 00:13:43,156 --> 00:13:45,868 or seven-to-one in the market, maybe eight-to-one. 250 00:13:50,455 --> 00:13:52,666 This was really bad. 251 00:13:52,749 --> 00:13:54,251 Like catastrophic bad. 252 00:13:57,963 --> 00:14:00,757 The reality is when you have moments like this, 253 00:14:01,341 --> 00:14:05,429 the, the future of the brand is at stake. 254 00:14:05,721 --> 00:14:10,434 You question whether or not you're gonna be here in five years. 255 00:14:10,684 --> 00:14:16,440 It's never a given that you're gonna get to make another generation of a console. 256 00:14:16,523 --> 00:14:19,818 Brands die every day. 257 00:14:19,902 --> 00:14:25,616 No one's playing on an Atari anymore, like nobody is playing on a Sega Genesis. 258 00:14:25,699 --> 00:14:27,492 We felt like our future was at stake. 259 00:14:28,744 --> 00:14:31,246 I think Microsoft learned the hard way, 260 00:14:34,416 --> 00:14:38,462 if you take your eye off the ball, and if you don't put gamers and games 261 00:14:38,545 --> 00:14:42,299 at the center of your ambitions, it's going to come back and bite you. 262 00:14:44,468 --> 00:14:45,719 Our fans had lost faith. 263 00:14:45,802 --> 00:14:47,054 It's collapsing. 264 00:14:47,137 --> 00:14:49,556 Move it! Move, move, move! 265 00:14:51,517 --> 00:14:55,187 How do we re-earn the trust of customers? 266 00:14:55,270 --> 00:14:59,441 One thing that was very clear, more of the same was not gonna work. 267 00:15:02,361 --> 00:15:05,030 Today Microsoft has announced that the Microsoft Studios 268 00:15:05,113 --> 00:15:06,406 corporate vice president Phil... 269 00:15:06,490 --> 00:15:08,325 Spencer is the new head of Xbox. 270 00:15:08,408 --> 00:15:10,369 Let's talk about your new role. 271 00:15:10,452 --> 00:15:11,537 What are you gonna be doing? 272 00:15:12,246 --> 00:15:16,917 The emergency glass was shattered and Phil was pulled out and put in 273 00:15:17,000 --> 00:15:19,336 to right the Xbox ship that was sinking. 274 00:15:20,087 --> 00:15:22,923 He was there early days, studied under Ed Fries, 275 00:15:23,006 --> 00:15:25,717 so he knew exactly what made the original Xbox work. 276 00:15:25,801 --> 00:15:28,971 He was a gamer. But he was also a longtime Microsoft guy, 277 00:15:29,054 --> 00:15:30,597 so he's sort of the perfect hybrid. 278 00:15:31,098 --> 00:15:33,225 He is a proxy for gamers. 279 00:15:33,308 --> 00:15:34,685 They believe in Phil. 280 00:15:34,768 --> 00:15:37,104 I play lots of games with Phil on weekends and evenings, 281 00:15:37,187 --> 00:15:39,106 and he's always thinking about the player first. 282 00:15:39,314 --> 00:15:43,569 Having someone lead the platform, who comes from that place. 283 00:15:43,652 --> 00:15:45,237 It was a big turning point for us. 284 00:15:45,320 --> 00:15:47,573 We needed somebody that could lead us, 285 00:15:47,656 --> 00:15:49,992 that we trusted, that cared about the team. 286 00:15:52,953 --> 00:15:55,789 I had no training in running a team of that size, 287 00:15:55,873 --> 00:15:58,208 or the platform team or the hardware team. 288 00:15:58,292 --> 00:16:01,295 So I knew that it would be a challenge. 289 00:16:01,378 --> 00:16:05,340 One of the things that was really hard about the Xbox One launch was, 290 00:16:05,424 --> 00:16:08,010 Phil had more than a broken business, he had a broken culture. 291 00:16:08,552 --> 00:16:11,305 There were people who would literally come up to me in, in tears. 292 00:16:11,388 --> 00:16:15,058 Who had killed themselves to try to get a product into market. 293 00:16:15,559 --> 00:16:18,228 The product did not make gamers happy. 294 00:16:18,312 --> 00:16:21,899 So I knew we had to get the team onboard, we have to believe in why we're here. 295 00:16:21,982 --> 00:16:25,777 The first thing that Phil did was he went after culture. 296 00:16:25,861 --> 00:16:29,198 I wanted to try to continue to see Xbox 297 00:16:29,281 --> 00:16:32,910 be an important brand in gaming, but it's not just about me. 298 00:16:32,993 --> 00:16:37,039 As a leader you realize that if we can't empower our great people 299 00:16:37,122 --> 00:16:39,249 to do great things that we should give up. 300 00:16:40,375 --> 00:16:43,587 I knew that this effort would take the entire team, 301 00:16:44,087 --> 00:16:47,382 and it was gonna be incredibly hard. 302 00:16:50,385 --> 00:16:53,847 Under Phil's leadership, and with a green light from Microsoft, 303 00:16:53,931 --> 00:16:58,852 the Xbox team launched a plan to pull back from the edge of console obscurity. 304 00:16:59,102 --> 00:17:01,063 Xbox had a lot of plates to spin. 305 00:17:01,146 --> 00:17:03,357 They had to gain the trust of developers, 306 00:17:03,482 --> 00:17:05,359 they had to make a statement with the gamers, 307 00:17:05,442 --> 00:17:07,694 reverse all of the messaging that they made, 308 00:17:07,778 --> 00:17:10,614 and that's not a switch that you flip overnight. 309 00:17:10,697 --> 00:17:13,659 That can take years. Years. 310 00:17:13,742 --> 00:17:17,496 I don't think there was a question around where I wanted to focus. 311 00:17:17,579 --> 00:17:20,791 We know that day-one customer every year has to be the gamer, 312 00:17:20,874 --> 00:17:22,626 you expand from that gaming audience out. 313 00:17:25,254 --> 00:17:30,551 With Phil being in charge, it sort of cemented putting a game face back on Xbox. 314 00:17:32,594 --> 00:17:34,137 - Marty? Big news today. - Yeah? 315 00:17:34,221 --> 00:17:35,305 Yeah, bombshells. 316 00:17:37,474 --> 00:17:40,310 Microsoft announced that a Kinect-less Xbox One is coming June 9th. 317 00:17:40,394 --> 00:17:42,771 Yeah. For $399. Yeah. 318 00:17:42,855 --> 00:17:44,565 One of the decisions that we had made 319 00:17:44,648 --> 00:17:46,984 is that we were gonna offer Xbox One without Kinect, 320 00:17:47,067 --> 00:17:49,361 and lower the price by $100. 321 00:17:51,530 --> 00:17:52,781 This is what everyone wanted. 322 00:17:52,865 --> 00:17:55,534 Xbox Entertainment Studios, which is better known 323 00:17:55,617 --> 00:17:58,120 as the TV division, has been shut down. 324 00:17:58,912 --> 00:18:04,293 Shutting down Xbox Entertainment Studios was really just tradeoffs we had to make. 325 00:18:04,376 --> 00:18:08,005 All of the investments that you're making in that entertainment, the movies, 326 00:18:08,088 --> 00:18:10,716 the TV shows, and things, are going to come at the expense 327 00:18:10,799 --> 00:18:13,010 of making the same investments in games. 328 00:18:13,552 --> 00:18:17,347 And, we still had more games we needed to make. 329 00:18:20,601 --> 00:18:23,437 Microsoft has announced a new platform for independent developers 330 00:18:23,520 --> 00:18:25,856 looking to bring their games to Xbox One. 331 00:18:25,939 --> 00:18:29,401 Game content is the thing that's gonna drive our success 332 00:18:29,484 --> 00:18:31,236 as much as anything else that we do. 333 00:18:31,653 --> 00:18:35,365 We needed external independent developers to be successful on our platform. 334 00:18:36,074 --> 00:18:37,159 Independent developers 335 00:18:37,242 --> 00:18:40,996 have fundamentally changed the way we play games this generation. 336 00:18:41,079 --> 00:18:43,540 The smartest move that Microsoft made was, 337 00:18:43,624 --> 00:18:45,459 they took Chris Charla, who was a developer, 338 00:18:45,542 --> 00:18:47,377 and said we're gonna allow self-publishing 339 00:18:47,461 --> 00:18:48,795 and this is the guy who's gonna really help with that. 340 00:18:50,881 --> 00:18:52,799 Players don't care if it's from a big company, 341 00:18:52,966 --> 00:18:55,260 or a single person, they just wanna play fun games, 342 00:18:55,344 --> 00:18:58,805 and our job as a platform holder is to make that happen. 343 00:18:59,806 --> 00:19:01,225 This was a guy who was a developer, 344 00:19:01,308 --> 00:19:02,935 smart guy, he understands the community, 345 00:19:03,310 --> 00:19:05,687 he's been there himself, he was great in that role. 346 00:19:06,063 --> 00:19:08,315 Major League Baseball publishes a baseball game 347 00:19:08,398 --> 00:19:09,691 through the ID@Xbox program. 348 00:19:09,983 --> 00:19:13,028 Fortnite, from Epic, came through the ID@Xbox program. 349 00:19:13,445 --> 00:19:14,613 We have the ability to get, you know, 350 00:19:14,696 --> 00:19:16,949 our small, cool little ideas up on the big screen. 351 00:19:17,407 --> 00:19:20,536 It's just an amazing experience that none of us really saw coming. 352 00:19:24,331 --> 00:19:26,625 Back when Microsoft said Phil's gonna be in charge, 353 00:19:26,875 --> 00:19:29,211 our faith went way up that things were gonna change 354 00:19:29,294 --> 00:19:32,422 and then right away they did, and then when Microsoft showed 355 00:19:32,506 --> 00:19:35,509 that they were making these moves, you were like, this has all the 356 00:19:35,592 --> 00:19:39,930 opportunities to really go the right way, but the gamers were still upset, 357 00:19:40,013 --> 00:19:43,016 and you're like, "Well look, it's a big ship, 358 00:19:43,392 --> 00:19:46,019 but the changes they just made, give them a chance." 359 00:19:46,520 --> 00:19:50,148 While lowering the price of Xbox One and reprioritizing developers 360 00:19:50,232 --> 00:19:53,527 were major steps towards getting back into the good graces of gamers, 361 00:19:53,735 --> 00:19:57,364 a desire to enlist an entirely new generation of players 362 00:19:57,447 --> 00:20:00,993 inspired Xbox to go somewhere it had never been before. 363 00:20:01,618 --> 00:20:05,289 Let's go to a place where everything is made of blocks. 364 00:20:05,956 --> 00:20:08,625 Where the only limit is your imagination. 365 00:20:08,709 --> 00:20:13,046 The team said, how many kids have their first experience with any video game 366 00:20:13,130 --> 00:20:17,301 with mom or dad's cell phone in the back seat playing Minecraft? 367 00:20:17,384 --> 00:20:20,137 The company that is known for Windows and word processors, 368 00:20:20,429 --> 00:20:25,142 will pay two-and-a-half billion dollars for Swedish game developer Mojang, 369 00:20:25,225 --> 00:20:29,897 that is the company behind the wildly successful, ever-popular Minecraft game. 370 00:20:29,980 --> 00:20:31,815 No, they're gonna mess it up! 371 00:20:33,192 --> 00:20:36,069 Right after the acquisition, all of the public perception 372 00:20:36,153 --> 00:20:38,238 when you read about in the press was that evil Microsoft 373 00:20:38,322 --> 00:20:39,948 was going to come ruin Minecraft. 374 00:20:40,032 --> 00:20:43,785 Can Microsoft keep its hands off Minecraft and just keep that, that pure experience. 375 00:20:43,869 --> 00:20:47,623 There was an assumption, you know again that old console war thinking, 376 00:20:47,706 --> 00:20:54,087 that Microsoft would pull it off of any platforms that weren't Windows or Xbox. 377 00:20:54,421 --> 00:20:57,382 There certainly could have been a decision that look, we just paid 378 00:20:57,466 --> 00:21:01,470 a bunch of money for this game, we need it to go help Xbox so from now on, 379 00:21:01,595 --> 00:21:04,097 the only place you're gonna be able to play Minecraft is on Xbox. 380 00:21:04,681 --> 00:21:06,517 There's gotta be something bigger going on here. 381 00:21:07,434 --> 00:21:11,730 But I'm grateful that Phil Spencer understood that what we had 382 00:21:11,813 --> 00:21:14,233 was a cultural phenomenon and what we had acquired 383 00:21:14,316 --> 00:21:18,111 almost as much as a game was the community that came with it. 384 00:21:18,195 --> 00:21:22,241 Go Red Side, go! C'mon Red Side! C'mon! 385 00:21:22,324 --> 00:21:23,659 The world is changing 386 00:21:23,742 --> 00:21:27,788 and the idea that limiting the places 387 00:21:27,871 --> 00:21:31,041 where people can experience your games is not always right. 388 00:21:33,168 --> 00:21:35,587 Whether you're playing on an Xbox, PlayStation, 389 00:21:35,671 --> 00:21:40,133 an Android, iOS device, our goal is to continue to evolve 390 00:21:40,217 --> 00:21:42,427 and innovate with Minecraft across all those platforms. 391 00:21:42,511 --> 00:21:44,763 Woohoo! 392 00:21:47,099 --> 00:21:48,725 The decision to make Minecraft 393 00:21:48,809 --> 00:21:52,020 accessible across all platforms surprised the industry, 394 00:21:52,271 --> 00:21:56,108 but Xbox had something on the horizon that would upend it. 395 00:21:56,859 --> 00:21:58,527 Wondering what's going on, eh? 396 00:21:58,610 --> 00:22:00,654 Wonderful. Let's get started! 397 00:22:00,737 --> 00:22:03,156 With all of the things that we're trying to go do, 398 00:22:03,240 --> 00:22:06,827 creating Game Pass, was a decision that was gonna be 399 00:22:06,910 --> 00:22:08,579 disruptive to the industry. 400 00:22:09,705 --> 00:22:10,747 Oh, hey! 401 00:22:10,831 --> 00:22:12,541 Game Pass was the first service 402 00:22:12,624 --> 00:22:14,334 where you'd have access to a library of games 403 00:22:14,418 --> 00:22:17,129 and you could download and play the games in their full fidelity locally. 404 00:22:19,923 --> 00:22:23,385 We heard from people who said buying multiple $70 games 405 00:22:23,468 --> 00:22:25,345 is actually just economically not possible. 406 00:22:25,804 --> 00:22:28,307 And people wanted to play across devices. 407 00:22:28,390 --> 00:22:30,976 With Game Pass, you now have a shared library with your friends, 408 00:22:31,059 --> 00:22:34,688 and you can just decide to say, "Hey, let's go, let's go jump on and play this." 409 00:22:37,065 --> 00:22:39,651 What we learned as part of it was kind of not necessarily 410 00:22:39,735 --> 00:22:42,196 something we do at the beginning, it became this part of the journey 411 00:22:42,279 --> 00:22:44,865 is it also created enormous value for publishers. 412 00:22:44,948 --> 00:22:48,785 Developers that might not have had the front row or front seat. 413 00:22:49,036 --> 00:22:52,206 They're in there, and they're on the same level as Halo. 414 00:22:53,123 --> 00:22:55,542 You know when you're building a game, if you're not a known IP, 415 00:22:55,626 --> 00:22:57,044 it's really easy to get lost. 416 00:22:59,922 --> 00:23:03,717 The biggest thing about Game Pass is the amount of players. 417 00:23:04,384 --> 00:23:08,555 I can put a game into Game Pass and 10 million players 418 00:23:08,639 --> 00:23:11,433 can show up the next day who might not have decided 419 00:23:11,517 --> 00:23:13,685 to plunk down $60 for my game. 420 00:23:13,769 --> 00:23:16,146 It lowers the barrier to entry, 421 00:23:16,230 --> 00:23:19,650 it makes it easier for you to experiment and choose. 422 00:23:19,733 --> 00:23:22,402 The people that subscribe actually play more games. 423 00:23:22,486 --> 00:23:26,323 It's just like flick, flick, flick, oh yeah I'll play this one for a while. 424 00:23:26,406 --> 00:23:29,409 And now you see other companies considering and moving 425 00:23:29,493 --> 00:23:30,786 in faster to the Game Pass model. 426 00:23:30,869 --> 00:23:33,413 Game Pass is probably the future of how we distribute games. 427 00:23:39,628 --> 00:23:42,798 Game Pass revolutionized the landscape of video gaming, 428 00:23:42,881 --> 00:23:44,508 but in order to get the most 429 00:23:44,591 --> 00:23:46,760 out of the tsunami of new content they were providing, 430 00:23:46,844 --> 00:23:49,638 Xbox knew it was time to up the ante. 431 00:23:52,850 --> 00:23:57,312 When we launched the original Xbox, we had this tagline. 432 00:23:57,437 --> 00:23:59,022 "There's no power greater than X." 433 00:23:59,314 --> 00:24:02,109 And we were the most powerful. And we owned that. 434 00:24:02,401 --> 00:24:03,986 That's what our gamers expected from us. 435 00:24:04,069 --> 00:24:06,446 That's what we had delivered um, early on. 436 00:24:06,530 --> 00:24:08,156 We were always the most powerful console. 437 00:24:08,240 --> 00:24:10,659 And we lost that with Xbox One. 438 00:24:11,535 --> 00:24:13,787 As we thought about broadening what the Xbox One did, 439 00:24:13,871 --> 00:24:18,208 we had sort of lost sight of first and foremost, this is a gaming machine. 440 00:24:19,376 --> 00:24:22,504 The PlayStation 4 was a technically superior experience. 441 00:24:23,005 --> 00:24:25,507 You know, one friend tells his friends, 442 00:24:25,591 --> 00:24:28,927 "Hey, it's better on PlayStation 4, you should play it over there," 443 00:24:29,011 --> 00:24:30,637 and that just spreads. 444 00:24:30,929 --> 00:24:33,640 You know if we were a car company, we always made the fastest car. 445 00:24:34,016 --> 00:24:35,767 That's what, was what our brand was. 446 00:24:36,268 --> 00:24:39,563 But for us to get back to what we were always about, 447 00:24:39,646 --> 00:24:44,359 we needed a console that would be more powerful than any other console. 448 00:24:44,651 --> 00:24:48,071 It was about reclaiming the horsepower narrative. 449 00:24:52,743 --> 00:24:56,788 So Phil delivered Project Scorpio, which they called the Xbox One X. 450 00:24:57,122 --> 00:25:01,919 We went back to our roots of being the most powerful console ever built. 451 00:25:03,545 --> 00:25:05,714 More power, more pixels, more framerate. 452 00:25:05,797 --> 00:25:09,718 It was all about core gaming goodness. 453 00:25:09,801 --> 00:25:10,969 - True 4 - K gaming. 454 00:25:12,054 --> 00:25:15,015 They engineer the world's most powerful console, 455 00:25:15,349 --> 00:25:17,935 they win back a lot of gamer trust with that. 456 00:25:19,228 --> 00:25:25,067 This monster was almost like the rebirth of the Xbox brand to continue to make sure 457 00:25:25,150 --> 00:25:27,653 there is no power greater than X as we thought about the future. 458 00:25:29,613 --> 00:25:32,074 The most powerful console, it's a thing of beauty. 459 00:25:32,157 --> 00:25:34,076 I think the big thing for me is just games. 460 00:25:37,996 --> 00:25:40,582 How do we deliver the best games to people? 461 00:25:41,375 --> 00:25:43,669 Get the games that our players love? 462 00:25:43,752 --> 00:25:45,420 We said, you know, content is critical. 463 00:25:45,838 --> 00:25:47,589 And one of the best ways 464 00:25:47,673 --> 00:25:50,092 to get the best games is to invest in studios. 465 00:25:50,175 --> 00:25:51,426 That's what we like to see. 466 00:25:51,510 --> 00:25:54,137 But making games is hard, it's complicated, 467 00:25:54,513 --> 00:25:56,306 it's about hey, can a group of people 468 00:25:56,390 --> 00:25:58,809 actually effectively create something together? 469 00:25:59,560 --> 00:26:00,811 We have to be really thoughtful 470 00:26:00,894 --> 00:26:03,730 and mindful about respecting the culture 471 00:26:03,814 --> 00:26:07,401 and the heritage of the studio but also infusing, you know, 472 00:26:07,484 --> 00:26:08,944 kind of the power of Microsoft. 473 00:26:09,027 --> 00:26:10,821 There's no magic formula for that, 474 00:26:10,904 --> 00:26:12,865 you know, I think that's more of an art than a science. 475 00:26:14,241 --> 00:26:15,951 One of the biggest missteps 476 00:26:16,034 --> 00:26:18,954 that we learned from in the past was Lionhead. 477 00:26:19,955 --> 00:26:23,876 We had already published Fable 1, and it was a hit, people loved it, 478 00:26:23,959 --> 00:26:27,337 the beauty of that game, it was basically like a moving 479 00:26:27,421 --> 00:26:30,591 stained-glass window, people wanted more, and so we bought Lionhead. 480 00:26:31,341 --> 00:26:32,551 Those were good years. 481 00:26:32,885 --> 00:26:34,344 The game was great. 482 00:26:34,511 --> 00:26:35,929 Just everything came together. 483 00:26:36,513 --> 00:26:38,974 But after Fable II, Kinect came along, 484 00:26:39,057 --> 00:26:42,394 and the Fable-Kinect marriage just never really took. 485 00:26:42,728 --> 00:26:45,314 And then Fable Journey was a passion project 486 00:26:45,397 --> 00:26:47,733 for a lot of people, but I think it deviated 487 00:26:47,816 --> 00:26:51,987 pretty significantly from the pillars of what made Fable 1 and 2 so popular. 488 00:26:52,070 --> 00:26:54,823 Some very, very sad news coming out of Microsoft today. 489 00:26:54,907 --> 00:26:57,743 They're shutting down Fable developer Lionhead Studios. 490 00:26:57,826 --> 00:26:59,995 We acquired Lionhead in 2006. 491 00:27:00,454 --> 00:27:02,748 Shut it down in 2016. 492 00:27:02,915 --> 00:27:05,959 A couple years later, we reflected back on that experience. 493 00:27:06,043 --> 00:27:09,004 What did we learn, how do we not repeat our same mistakes? 494 00:27:09,087 --> 00:27:12,424 You acquire a studio for what they're great at now, 495 00:27:12,883 --> 00:27:16,970 and your job is to help them accelerate how they do what they do. 496 00:27:17,054 --> 00:27:19,431 Not them accelerate what you do. 497 00:27:19,515 --> 00:27:22,976 I wish Lionhead were still a viable studio. 498 00:27:25,437 --> 00:27:30,609 It is only when you fall that you learn whether you can fly. 499 00:27:31,777 --> 00:27:35,614 When we launched Xbox One X in 2017, 500 00:27:35,697 --> 00:27:38,867 we knew studio acquisitions were gonna be huge for us. 501 00:27:38,951 --> 00:27:41,703 The studios we had were creating amazing games, 502 00:27:41,787 --> 00:27:45,374 but we wanted to have more, and the challenges that 503 00:27:45,457 --> 00:27:49,461 we went through with Lionhead taught us what to do this time. 504 00:27:49,545 --> 00:27:51,672 Welcome to E3 2018. 505 00:27:52,005 --> 00:27:54,508 So with the many failures of the Xbox One, 506 00:27:54,591 --> 00:27:58,178 they're a distant second to Sony, but, to their credit, 507 00:27:58,512 --> 00:28:05,102 they had been doing everything right, the potential is there at E3 2018 508 00:28:05,185 --> 00:28:09,064 to regain that foothold in the upcoming next generation. 509 00:28:09,147 --> 00:28:13,777 We know that exclusive games from our Microsoft Studios 510 00:28:14,111 --> 00:28:17,614 are what originally turned so many of us into Xbox fans. 511 00:28:17,739 --> 00:28:20,409 The first and greatest instance of us 512 00:28:20,492 --> 00:28:24,955 showcasing what we do for players is what we do with our studios. 513 00:28:26,498 --> 00:28:28,333 Phil, he took out the credit card, 514 00:28:28,417 --> 00:28:31,378 went on a shopping spree, bought some amazing companies. 515 00:28:31,587 --> 00:28:32,671 Started promising games. 516 00:28:33,964 --> 00:28:38,635 I'm excited to welcome Undead Labs to Microsoft Studios. 517 00:28:38,969 --> 00:28:41,180 It doesn't matter what your technology is. 518 00:28:41,263 --> 00:28:43,473 If you don't have the games, we were done. 519 00:28:43,682 --> 00:28:44,850 Content is king. 520 00:28:44,933 --> 00:28:46,351 Ninja Theory. 521 00:28:46,435 --> 00:28:47,978 Compulsion Games. 522 00:28:48,061 --> 00:28:51,273 Brand new Microsoft studio. The Initiative. 523 00:28:51,648 --> 00:28:52,816 Playground Games. 524 00:28:55,110 --> 00:28:56,320 Yesterday was a huge moment. 525 00:28:56,403 --> 00:28:59,615 You brought not 1, not 2 not 3, not 4, but 5 new studios... 526 00:29:00,240 --> 00:29:03,160 The acquisitions kept coming at a blistering pace. 527 00:29:03,869 --> 00:29:09,291 We'll be acquiring InExile Entertainment, Obsidian Entertainment. 528 00:29:09,750 --> 00:29:11,668 We doubled the number of internal studios 529 00:29:11,752 --> 00:29:14,838 to 15 internal studios and made a big group of acquisitions. 530 00:29:14,922 --> 00:29:17,007 Double Fine Productions. 531 00:29:17,799 --> 00:29:22,429 Buying all those studios, Microsoft focused back on the hardcore gamer. 532 00:29:22,513 --> 00:29:24,431 We're highlighting 60 games for you. 533 00:29:24,515 --> 00:29:27,809 Fourteen games from Xbox Games Studios. 534 00:29:27,893 --> 00:29:32,940 And over 30 games premiering in Xbox Game Pass. 535 00:29:33,023 --> 00:29:34,358 Let's jump in. 536 00:29:37,819 --> 00:29:40,531 This volley of acquisitions created one of the largest, 537 00:29:40,614 --> 00:29:42,574 most diverse catalogs in the industry. 538 00:29:43,200 --> 00:29:45,953 But Microsoft had its eye on more target. 539 00:29:46,036 --> 00:29:48,163 And it was a big one. 540 00:29:52,668 --> 00:29:56,296 We're really delighted to reach this agreement with ZeniMax 541 00:29:56,380 --> 00:29:58,966 and bring Bethesda into the Microsoft family. 542 00:29:59,049 --> 00:30:03,637 The move adds eight more studios to Xbox's first-party portfolio, 543 00:30:03,929 --> 00:30:07,516 including Bethesda Game Studios, ID Software, Arkane, 544 00:30:07,975 --> 00:30:10,352 MachineGames, Tango Gameworks, and more. 545 00:30:10,936 --> 00:30:15,107 What you really see us doing is broadening the opportunity 546 00:30:15,190 --> 00:30:18,861 for people to participate in, you know, what is one of the world's, 547 00:30:18,944 --> 00:30:22,155 you know, greatest entertainment and leisure-time activities. 548 00:30:22,239 --> 00:30:23,615 It's a game-changer because it's bigger 549 00:30:23,699 --> 00:30:26,243 than anything else we've ever done in gaming. 550 00:30:26,326 --> 00:30:27,744 It's the third largest acquisition 551 00:30:27,828 --> 00:30:30,372 in Microsoft's history, which still blows my mind. 552 00:30:30,455 --> 00:30:35,878 So now more than ever like our commitment to games, is absolute. 553 00:30:40,048 --> 00:30:43,051 Microsoft's commitment to keeping fans on their toes 554 00:30:43,135 --> 00:30:45,345 was also absolute. 555 00:30:45,429 --> 00:30:47,222 Good evening everyone! 556 00:30:49,433 --> 00:30:52,436 Welcome to the Game Awards 2019, I'm Geoff Keighley. 557 00:30:53,812 --> 00:30:56,023 Ah, world premieres are a big part of this show, 558 00:30:56,356 --> 00:30:59,401 and you guys have a lot of expectations on the Internet, for things, 559 00:30:59,484 --> 00:31:01,111 there are lots of rumors, lots of leaks. 560 00:31:01,195 --> 00:31:05,991 It's pretty rare I think nowadays that any new tech doesn't leak 561 00:31:06,074 --> 00:31:08,035 and like nobody knows that it's coming. 562 00:31:08,118 --> 00:31:12,664 And then sometimes there's surprises that come out of nowhere. 563 00:31:12,748 --> 00:31:13,874 Enjoy this. 564 00:31:16,251 --> 00:31:18,462 Let's suppose that you were able every night 565 00:31:18,545 --> 00:31:20,422 to dream any dream you wanted to dream. 566 00:31:22,925 --> 00:31:23,926 A lot of dreams. 567 00:31:24,343 --> 00:31:26,053 And that you could have the power... 568 00:31:26,428 --> 00:31:28,180 I don't think anybody saw it coming. 569 00:31:28,263 --> 00:31:30,307 It was something completely unexpected. 570 00:31:32,518 --> 00:31:33,769 Uh... 571 00:31:33,852 --> 00:31:34,937 Whoa is it Elden Ring? 572 00:31:35,395 --> 00:31:37,397 Even the video was deliberately designed, 573 00:31:37,481 --> 00:31:40,901 talking about power your dreams and, you know the visuals of that. 574 00:31:40,984 --> 00:31:42,528 Let's have a surprise. 575 00:31:42,903 --> 00:31:45,197 - Bioshock? And then... 576 00:31:45,280 --> 00:31:47,241 Wait a minute, what was that? 577 00:31:48,951 --> 00:31:50,744 Wait what? 578 00:31:51,328 --> 00:31:54,957 I just saw a car race through, and then there was like a soccer scene 579 00:31:55,040 --> 00:31:58,126 and then, by the time I saw Master Chief... 580 00:31:58,210 --> 00:32:01,755 - That's Halo! - Halo. That's what I want. 581 00:32:02,047 --> 00:32:06,343 And finally you would dream of where you are now. 582 00:32:06,426 --> 00:32:09,847 And seeing the streamers that were streaming, and their reactions, 583 00:32:10,639 --> 00:32:14,768 that element of surprise is so magical and so powerful. 584 00:32:15,602 --> 00:32:16,687 - That's, that... - Oh, that's Scarlet? 585 00:32:16,770 --> 00:32:18,939 Oh! Oh! yeah! 586 00:32:19,022 --> 00:32:20,941 Xbooooox! 587 00:32:21,024 --> 00:32:22,568 This is not the new Xbox console. 588 00:32:22,651 --> 00:32:24,278 Wait, this is not the new Xbox console, what... 589 00:32:24,361 --> 00:32:26,405 They're showing their new box? 590 00:32:26,488 --> 00:32:27,656 What the heck! 591 00:32:29,449 --> 00:32:32,494 For 18 years and three generations, 592 00:32:32,619 --> 00:32:36,248 we've designed Xbox consoles to power your dreams. 593 00:32:36,331 --> 00:32:37,833 Oh, my boy! 594 00:32:37,916 --> 00:32:39,501 You dog. 595 00:32:39,585 --> 00:32:41,211 Meet the Xbox Series X. 596 00:32:41,295 --> 00:32:45,883 It was nuts-o! Because I had no clue it was coming, and I was there! 597 00:32:45,966 --> 00:32:51,763 Our fastest, most powerful Xbox will set a new bar for performance. 598 00:32:51,847 --> 00:32:53,849 Games are going to look better. 599 00:32:53,932 --> 00:32:56,393 You know games are going to play better. 600 00:32:56,476 --> 00:32:58,645 It is in fact the most powerful console 601 00:32:58,854 --> 00:33:00,856 you can have in your living room right now. 602 00:33:00,939 --> 00:33:03,734 Yes! Yes! 603 00:33:05,527 --> 00:33:07,863 When we talk about freedom to play, 604 00:33:07,946 --> 00:33:13,118 Project Scarlet is the formation of our future in cloud. 605 00:33:13,202 --> 00:33:16,371 Microsoft meanwhile launching a video-game streaming service. 606 00:33:16,455 --> 00:33:19,917 All your games can be streamed right into your phone, or your computer. 607 00:33:20,250 --> 00:33:22,377 The same way the original Xbox bridged the gap 608 00:33:22,461 --> 00:33:26,673 from early adopters with broadband, this powerful beast of a machine 609 00:33:26,757 --> 00:33:29,760 that can play games locally, it's also going to connect to the cloud. 610 00:33:29,843 --> 00:33:32,888 So it will bridge the gap between traditional, 611 00:33:32,971 --> 00:33:35,516 in-the-living-room local gaming and cloud-based gaming. 612 00:33:35,599 --> 00:33:38,435 We envision a world where you can play 613 00:33:38,519 --> 00:33:42,898 any game with anyone on any device. 614 00:33:42,981 --> 00:33:46,777 It is the next instance of what it means to game anywhere. 615 00:33:47,653 --> 00:33:51,823 We're streaming from data centers around the world to people's cell phones. 616 00:33:51,907 --> 00:33:55,327 We have thousands of people doing it, in three continents. 617 00:33:55,410 --> 00:33:56,578 Like that's just crazy. 618 00:33:56,662 --> 00:33:59,414 And I'll be damned if it doesn't actually... 619 00:33:59,540 --> 00:34:01,583 I mean, it works. It actually works! 620 00:34:02,793 --> 00:34:03,877 Where are we? 621 00:34:06,380 --> 00:34:07,506 I'm a big believer 622 00:34:07,589 --> 00:34:11,844 in the technology-access story of Project Xcloud. 623 00:34:11,927 --> 00:34:14,888 Think about the way you could unlock community. 624 00:34:14,972 --> 00:34:17,432 One of the things that we were really focused on with this generation 625 00:34:17,516 --> 00:34:20,978 was making Xbox available and appealing to the widest audience. 626 00:34:21,061 --> 00:34:23,480 I think we have some unique responsibilities 627 00:34:23,564 --> 00:34:27,693 to bring people from different backgrounds into the experience, 628 00:34:27,776 --> 00:34:32,990 and in order for us to succeed in that, we need to have the right services 629 00:34:33,073 --> 00:34:37,536 and content and creators building things for all kinds of players. 630 00:34:38,453 --> 00:34:40,455 It's about creating an opportunity 631 00:34:40,581 --> 00:34:43,292 for those that would not have had it otherwise. 632 00:34:44,084 --> 00:34:45,419 2.5 billion people on the planet 633 00:34:45,502 --> 00:34:47,713 play video games today, half the connected world. 634 00:34:48,255 --> 00:34:53,093 And that is the scale of opportunity a company like Microsoft should go after. 635 00:34:53,343 --> 00:34:57,681 Being bold and making bets is part of the culture of what it means to be here. 636 00:34:58,015 --> 00:35:02,853 I think that's true now, and it was true from the beginning. 637 00:35:07,858 --> 00:35:11,361 - Where are we going? - Back to where it all began. 638 00:35:15,949 --> 00:35:17,409 You know, we had some guys at Microsoft, 639 00:35:17,492 --> 00:35:19,453 came and said, "We should do a console." 640 00:35:19,912 --> 00:35:21,914 A Microsoft console? 641 00:35:23,248 --> 00:35:26,126 It's insane to launch a game console when you're Microsoft! 642 00:35:26,210 --> 00:35:28,253 You made frickin' Windows, and a spreadsheet. 643 00:35:29,004 --> 00:35:31,006 Bill Gates took a bet on us. 644 00:35:36,136 --> 00:35:39,139 Being able to do something very different and revolutionary, 645 00:35:39,515 --> 00:35:41,642 was where we were getting our energy from. 646 00:35:41,850 --> 00:35:43,560 Are you ready?! 647 00:35:44,019 --> 00:35:46,146 If you think about where we were 20 years ago, 648 00:35:46,230 --> 00:35:48,440 when I first moved into the games group, 649 00:35:48,524 --> 00:35:51,610 my dad was horrified because gaming wasn't a career, 650 00:35:51,693 --> 00:35:53,737 and gaming was something that nobody did. 651 00:35:55,739 --> 00:35:57,407 One of the most incredible things 652 00:35:57,491 --> 00:36:01,912 is this turning point in how gaming is viewed. 653 00:36:01,995 --> 00:36:04,456 That evolution of people suddenly seeing the value 654 00:36:04,540 --> 00:36:06,667 of the community that comes with gaming. 655 00:36:06,792 --> 00:36:10,420 There's a fundamental change to the way we think about human interaction. 656 00:36:10,504 --> 00:36:11,505 There he is! 657 00:36:11,588 --> 00:36:13,173 We can have deep, meaningful relationships 658 00:36:13,257 --> 00:36:15,425 with people a world away that we've never met in person. 659 00:36:15,509 --> 00:36:17,427 11 years of playing together. 660 00:36:17,511 --> 00:36:19,805 11 years, we finally see each other. 661 00:36:19,888 --> 00:36:23,934 Woohoo! Ha ha ha ha ha! 662 00:36:24,017 --> 00:36:27,354 Even in recent history, you know throughout 2020, 663 00:36:27,437 --> 00:36:33,151 we saw that people recognized this as a way to have a social experience, 664 00:36:33,235 --> 00:36:35,195 in a time when we had to be distanced. 665 00:36:36,238 --> 00:36:40,325 The pandemic got people to rethink how they think about video games. 666 00:36:40,409 --> 00:36:43,829 Children can sit and play Minecraft with friends and build 667 00:36:43,912 --> 00:36:46,290 and create something and connect. 668 00:36:46,540 --> 00:36:49,710 And at the core, that's what Xbox is about. 669 00:36:53,547 --> 00:36:57,301 As Xbox continues to grow, I think it's going to continue 670 00:36:57,384 --> 00:36:59,720 to shape the future of the gaming community. 671 00:37:00,679 --> 00:37:03,640 It goes beyond how many units they sold, 672 00:37:03,932 --> 00:37:08,896 it goes beyond which generation they won or were dominant in. 673 00:37:10,731 --> 00:37:14,318 I think a company like Microsoft, we should stand for something more 674 00:37:14,401 --> 00:37:18,113 than just what place we're in, and I want Xbox to be around forever, 675 00:37:18,739 --> 00:37:20,073 and I want to be able to look back on it 676 00:37:20,157 --> 00:37:25,078 and say we really used this opportunity to shape culture. 677 00:37:29,249 --> 00:37:31,668 So I'm announcing the Xbox. 678 00:37:32,044 --> 00:37:34,505 The future of console gaming. 679 00:37:34,588 --> 00:37:40,594 A whole new platform that all of you are going to take in directions 680 00:37:40,677 --> 00:37:44,139 that we can't even imagine, and the empowerment 681 00:37:44,223 --> 00:37:47,226 that comes out of this is going to be amazing. 682 00:37:48,227 --> 00:37:49,770 The power of X. 59014

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