Original subtitles

The battle to control the entertainment pipe

into your living room just got a bit more interesting.

Microsoft's Xbox announcing some landmark news today

as it moves into the media business.

It's time for a new generation of Xbox!

And now, Microsoft wants to appeal to more than just gamers.

It can also control your TV and cable box and you...

Everything from your movies to video conferencing on Skype

to doing all kinds of things.

Casual gaming. Television. Social, music, and video.

The game console will transform into a next-generation entertainment hub.

For both gamers and non-gamers alike.

What if I told you, that going forward, our competition is not going to be

Sony and Nintendo, but television and media.

Oh, God.

There's a new contender in the video game wars.

Xbox is going to be...

- The future. - Truly the future of video games.

Xbox. Taking over the living room.

Limitless connected digital entertainment.

You guys never understood!

The company is going to face fierce competition.

Sniper. Nooo!

It's a ticking time bomb.

It makes me very nervous to actually play this for you.

Xbox, getting a major overhaul.

A bold vision for the future of gaming.

It's the Xbooooooox!

On May 21st, Microsoft will unveil its latest Xbox system.

Xbox has been the best-selling gaming console for 27 consecutive months.

We're expecting a slew of entertainment options

including possibly taking over your cable box.

And also delivering web content in easy and attractive ways.

It was exciting to think about what a single purpose,

dedicated entertainment console could be.

So we picked that as a path with Xbox One.

We wanted a broad device that touched all parts of gaming and entertainment.

Go on. Put your hands in.

We wanted to bring new audiences into Xbox,

people that were outside of what traditionally was thought of

as our core gaming audience that was really the intent at the time.

Within the company there's always a sense

of do more, and grow.

But I think Don was looking for like, what's that next big leap after Kinect,

and I think there was a sense that TV could be that thing.

Microsoft's gaming platform is becoming a true entertainment hub.

It just announced that for the first time,

people are using the Xbox more for entertainment,

TV, movies and music, than for playing video games.

Having our team think not only about gaming,

but television, movies, stories that lived

inside our gaming community, was something that I believed in.

Okay, this is an interesting idea.

Microsoft's going to get behind linear entertainment as well.

Xbox Entertainment Studios.

The idea was to take Xbox the brand from gaming

to Xbox the brand as entertainment.

Movies, music, television.

There was going to be a number of documentaries.

We all had big eyes for that, it's like whoa, we're gonna go Hollywood now.

Aaaand, action.

After years in development, Microsoft's next generation console

was finally ready to be unveiled at a media event codenamed Newcastle.

Coming off the success of the Xbox 360, expectations were through the roof.

Good morning everyone.

On behalf of the entire team, we're thrilled to unveil

the ultimate all-in-one home entertainment system.

We did a stream from,

around the world, and invited a bunch of media and influencers up to watch.

We gathered everybody into the conference room,

we have it streaming on our television, we're all really excited.

Team Xbox is on a new mission.

To become the all-in-one system for every living room.

The place where your games, TV, and entertainment come alive.

We're driven to build a future-proof system

that brings together the cloud, smart devices, new content.

We are really excited to bring the world of Halo

to Xbox as a premium television series.

We're sitting there listening to it the whole time,

and I remember one of our engineers,

said like, "They're not even talking about any of the games yet.

Are they gonna talk about games?"

With Kinect, we made you the controller.

This is human control for a human experience.

It was all about entertainment.

Even a partnership with Steven Spielberg, and they showed a TV guide.

At the reveal event. I mean that was really like, the vision.

This is the beginning of truly intelligent tv.

Xbox.

Watch TV.

You said television. We wanted to hear video games.

You know, we showed a few games.

But core gamers were left unsatisfied.

We're all in the green room, and as each person would get offstage,

you know, the execs in the room would ask

what the pulse is on social and it was not good.

This is not going well.

This is not going well at all.

I am really, really disappointed.

I think I'm going to go into mourning now.

That's how I feel about you, Xbox One.

There were hypercuts released minutes after the initial unveiling of the Xbox.

Watch TV. TV.

- TV remote. - TV.

- TV. TV. TV. - Television.

Television. Television.

- TV. TV. - Television.

Television. Television.

That was not the right way to unveil the next generation of gaming.

Wow.

That was the worst gaming event

that I've ever watched, ever.

Probably could have done a better job of reassuring people

that we were committed to excellence in gaming.

The response was so negative, and that was when I knew our lack of focus

was going to hurt us with our core audience.

I can't... I can't even start.

The Newcastle reveal really was about showcasing the entertainment proposition

that was going to come with the Xbox One.

We knew that E3 coming up in a few weeks was about games,

we'll talk about all games when we get to E3.

In hindsight, definitely not the right decision,

you don't tell console gamers to tune in to something

and then not show them the games.

The next evolution of gaming is a

voice remote control for your television!

The Xbox One reveal had obviously underwhelmed fans,

but Microsoft saw an opportunity to right the ship just 3 weeks later,

on the game industry's biggest stage.

This is an exciting day for our teams.

And as we've been promising, it's all about the games.

We're excited to share with you a stunning lineup

of world premiere gameplay and announcements.

The ball's in Microsoft's court, and they come out and they show some games.

And then right at the end of their press conference,

I remember looking up at the teleprompter.

Xbox One will launch this November

in 21 markets around the world, at $499 in the US...

$499.

At the time, the ideal price point was $399.

Anything over $399, you're in for a real struggle.

The issue was that, with Xbox One, Don's view was the new Kinect

was going to be required as part of the box.

So it was no longer just a peripheral, like the original Kinect,

now you were going to be forced to buy one.

This is a terrible mistake.

A huge mistake.

It definitely caused a disconnect.

Why are you charging me more money? I don't want this.

Kinect had so much promise.

It just wasn't ever going to be a thing that hardcore gamers wanted.

Especially when it upped the price by a hundred dollars.

Felix!

And then, later that day, Sony announces the price of the PlayStation 4.

I'm very proud to announce that PlayStation 4 will be available at $399.

We were surprised by the $100 difference.

You know. Didn't, this, like, it, that's a pretty big headwind to come back from.

You have essentially the same hardware

but one device is $100 cheaper...

"Cool. I'm going to go with that one."

And that's where they lost.

360 set us up for being the best box for developers,

the best box for core gamers.

And we then flipped it around and said this isn't a dev box,

this isn't a core-gaming box.

This is an entertainment device.

People didn't know what to think, they were just confused.

You know they wanted to push into this digital future.

The idea was, all connected, all the time.

The console would have to be able to check in with Microsoft servers,

or else the games wouldn't work.

Your content is available and it's stored in the cloud.

There were gonna be benefits to this

but Microsoft did a bad job of messaging those benefits.

You don't always have to be connected,

but for a lot of things like multiplayer gaming

or streaming content from the Internet, you're gonna need an Internet connection.

That's, that's the world we live in.

One of the biggest points of confusion

was how the new always online device

complicated the selling, trading, and gamers' biggest concern, sharing of games.

We knew the digital age and era was coming.

We knew it. And the original concept was,

you were going to have to be connected to play your games.

You're gonna play your games on your Xbox One.

Here's a disk.

Load it in, and you were gonna have to get a license for that disk,

but you had to be online to buy the license.

So it was a great way to not have people doing big downloads,

but here's the disk, and just pass it around.

That's it. Simple as that.

Well, that wasn't clear.

It seems like every single outlet

got a slightly different statement

- on used games. - Yep.

You can't share games between friends.

- You don't own the game you're buying. Yeah.

Don't, don't pretend like you own this thing that you just paid for.

And then, stuff got really ugly.

Sony came out, guns blazing, with the immediate response to the Xbox One.

This is how you share your games on PS4.

Thanks.

One person just hands another person a disk.

Because you, you weren't gonna be able to do that with this always online Xbox One.

Your game is your game.

You own it. You can sell it.

You can trade it in. That was, that was brutal.

As a team you've gotta take some bets

on things that you believe in and put that thing out.

Clearly in hindsight it was wrong.

People didn't want to spend $499 for a box to plug into their television to watch TV.

They weren't wrong, Microsoft wasn't wrong

that gamers wanted and expected more from their consoles.

Absolutely. In fact, it was Microsoft's fault if anything.

They were too far ahead of where their users thought they should be.

And there was this whole backlash that they didn't expect.

In 2013, the world wasn't ready for it.

We got pushback from consumers, from some journalists,

questioning whether we'd made the right choice as a company.

It was a valid criticism, but it was a very binary choice.

And we chose to bet on online.

It was a dark, dark, dark, dark moment for us.

And, ah, very, very, very painful.

News raced around the tech blogs Monday that the man behind Microsoft's

future console, the Xbox One, is leaving the company.

I wish that I would have had an opportunity to stay,

to execute on the vision and the capabilities

that the team had created, but I ended up in the summertime

announcing that I was going to be leaving.

I just remember getting an email from Steve Ballmer

that essentially said Don Mattrick has left.

I think we all just sort of looked at each other

and were like, "Okay so, what happens now?"

There was no fear.

No failure.

But the rules have changed.

It was a long road, and a long path from there,

but the team didn't give up, didn't wanna quit,

didn't feel like we couldn't overcome this,

and, we still had to come out and deliver the console.

Well it's here. Xbox One, finally on sale.

- Xbox One! We had a line of people

at the launch event, people were excited about it.

We had kind of an early signal that maybe things were okay.

The MBD group has revealed that Xbox One

led console sales in December, and with its $500 price point,

the Xbox One led annual hardware sales on a dollars basis.

But, by April, we were outsold six-

or seven-to-one in the market, maybe eight-to-one.

This was really bad.

Like catastrophic bad.

The reality is when you have moments like this,

the, the future of the brand is at stake.

You question whether or not you're gonna be here in five years.

It's never a given that you're gonna get to make another generation of a console.

Brands die every day.

No one's playing on an Atari anymore, like nobody is playing on a Sega Genesis.

We felt like our future was at stake.

I think Microsoft learned the hard way,

if you take your eye off the ball, and if you don't put gamers and games

at the center of your ambitions, it's going to come back and bite you.

Our fans had lost faith.

It's collapsing.

Move it! Move, move, move!

How do we re-earn the trust of customers?

One thing that was very clear, more of the same was not gonna work.

Today Microsoft has announced that the Microsoft Studios

corporate vice president Phil...

Spencer is the new head of Xbox.

Let's talk about your new role.

What are you gonna be doing?

The emergency glass was shattered and Phil was pulled out and put in

to right the Xbox ship that was sinking.

He was there early days, studied under Ed Fries,

so he knew exactly what made the original Xbox work.

He was a gamer. But he was also a longtime Microsoft guy,

so he's sort of the perfect hybrid.

He is a proxy for gamers.

They believe in Phil.

I play lots of games with Phil on weekends and evenings,

and he's always thinking about the player first.

Having someone lead the platform, who comes from that place.

It was a big turning point for us.

We needed somebody that could lead us,

that we trusted, that cared about the team.

I had no training in running a team of that size,

or the platform team or the hardware team.

So I knew that it would be a challenge.

One of the things that was really hard about the Xbox One launch was,

Phil had more than a broken business, he had a broken culture.

There were people who would literally come up to me in, in tears.

Who had killed themselves to try to get a product into market.

The product did not make gamers happy.

So I knew we had to get the team onboard, we have to believe in why we're here.

The first thing that Phil did was he went after culture.

I wanted to try to continue to see Xbox

be an important brand in gaming, but it's not just about me.

As a leader you realize that if we can't empower our great people

to do great things that we should give up.

I knew that this effort would take the entire team,

and it was gonna be incredibly hard.

Under Phil's leadership, and with a green light from Microsoft,

the Xbox team launched a plan to pull back from the edge of console obscurity.

Xbox had a lot of plates to spin.

They had to gain the trust of developers,

they had to make a statement with the gamers,

reverse all of the messaging that they made,

and that's not a switch that you flip overnight.

That can take years. Years.

I don't think there was a question around where I wanted to focus.

We know that day-one customer every year has to be the gamer,

you expand from that gaming audience out.

With Phil being in charge, it sort of cemented putting a game face back on Xbox.

- Marty? Big news today. - Yeah?

Yeah, bombshells.

Microsoft announced that a Kinect-less Xbox One is coming June 9th.

Yeah. For $399. Yeah.

One of the decisions that we had made

is that we were gonna offer Xbox One without Kinect,

and lower the price by $100.

This is what everyone wanted.

Xbox Entertainment Studios, which is better known

as the TV division, has been shut down.

Shutting down Xbox Entertainment Studios was really just tradeoffs we had to make.

All of the investments that you're making in that entertainment, the movies,

the TV shows, and things, are going to come at the expense

of making the same investments in games.

And, we still had more games we needed to make.

Microsoft has announced a new platform for independent developers

looking to bring their games to Xbox One.

Game content is the thing that's gonna drive our success

as much as anything else that we do.

We needed external independent developers to be successful on our platform.

Independent developers

have fundamentally changed the way we play games this generation.

The smartest move that Microsoft made was,

they took Chris Charla, who was a developer,

and said we're gonna allow self-publishing

and this is the guy who's gonna really help with that.

Players don't care if it's from a big company,

or a single person, they just wanna play fun games,

and our job as a platform holder is to make that happen.

This was a guy who was a developer,

smart guy, he understands the community,

he's been there himself, he was great in that role.

Major League Baseball publishes a baseball game

through the ID@Xbox program.

Fortnite, from Epic, came through the ID@Xbox program.

We have the ability to get, you know,

our small, cool little ideas up on the big screen.

It's just an amazing experience that none of us really saw coming.

Back when Microsoft said Phil's gonna be in charge,

our faith went way up that things were gonna change

and then right away they did, and then when Microsoft showed

that they were making these moves, you were like, this has all the

opportunities to really go the right way, but the gamers were still upset,

and you're like, "Well look, it's a big ship,

but the changes they just made, give them a chance."

While lowering the price of Xbox One and reprioritizing developers

were major steps towards getting back into the good graces of gamers,

a desire to enlist an entirely new generation of players

inspired Xbox to go somewhere it had never been before.

Let's go to a place where everything is made of blocks.

Where the only limit is your imagination.

The team said, how many kids have their first experience with any video game

with mom or dad's cell phone in the back seat playing Minecraft?

The company that is known for Windows and word processors,

will pay two-and-a-half billion dollars for Swedish game developer Mojang,

that is the company behind the wildly successful, ever-popular Minecraft game.

No, they're gonna mess it up!

Right after the acquisition, all of the public perception

when you read about in the press was that evil Microsoft

was going to come ruin Minecraft.

Can Microsoft keep its hands off Minecraft and just keep that, that pure experience.

There was an assumption, you know again that old console war thinking,

that Microsoft would pull it off of any platforms that weren't Windows or Xbox.

There certainly could have been a decision that look, we just paid

a bunch of money for this game, we need it to go help Xbox so from now on,

the only place you're gonna be able to play Minecraft is on Xbox.

There's gotta be something bigger going on here.

But I'm grateful that Phil Spencer understood that what we had

was a cultural phenomenon and what we had acquired

almost as much as a game was the community that came with it.

Go Red Side, go! C'mon Red Side! C'mon!

The world is changing

and the idea that limiting the places

where people can experience your games is not always right.

Whether you're playing on an Xbox, PlayStation,

an Android, iOS device, our goal is to continue to evolve

and innovate with Minecraft across all those platforms.

Woohoo!

The decision to make Minecraft

accessible across all platforms surprised the industry,

but Xbox had something on the horizon that would upend it.

Wondering what's going on, eh?

Wonderful. Let's get started!

With all of the things that we're trying to go do,

creating Game Pass, was a decision that was gonna be

disruptive to the industry.

Oh, hey!

Game Pass was the first service

where you'd have access to a library of games

and you could download and play the games in their full fidelity locally.

We heard from people who said buying multiple $70 games

is actually just economically not possible.

And people wanted to play across devices.

With Game Pass, you now have a shared library with your friends,

and you can just decide to say, "Hey, let's go, let's go jump on and play this."

What we learned as part of it was kind of not necessarily

something we do at the beginning, it became this part of the journey

is it also created enormous value for publishers.

Developers that might not have had the front row or front seat.

They're in there, and they're on the same level as Halo.

You know when you're building a game, if you're not a known IP,

it's really easy to get lost.

The biggest thing about Game Pass is the amount of players.

I can put a game into Game Pass and 10 million players

can show up the next day who might not have decided

to plunk down $60 for my game.

It lowers the barrier to entry,

it makes it easier for you to experiment and choose.

The people that subscribe actually play more games.

It's just like flick, flick, flick, oh yeah I'll play this one for a while.

And now you see other companies considering and moving

in faster to the Game Pass model.

Game Pass is probably the future of how we distribute games.

Game Pass revolutionized the landscape of video gaming,

but in order to get the most

out of the tsunami of new content they were providing,

Xbox knew it was time to up the ante.

When we launched the original Xbox, we had this tagline.

"There's no power greater than X."

And we were the most powerful. And we owned that.

That's what our gamers expected from us.

That's what we had delivered um, early on.

We were always the most powerful console.

And we lost that with Xbox One.

As we thought about broadening what the Xbox One did,

we had sort of lost sight of first and foremost, this is a gaming machine.

The PlayStation 4 was a technically superior experience.

You know, one friend tells his friends,

"Hey, it's better on PlayStation 4, you should play it over there,"

and that just spreads.

You know if we were a car company, we always made the fastest car.

That's what, was what our brand was.

But for us to get back to what we were always about,

we needed a console that would be more powerful than any other console.

It was about reclaiming the horsepower narrative.

So Phil delivered Project Scorpio, which they called the Xbox One X.

We went back to our roots of being the most powerful console ever built.

More power, more pixels, more framerate.

It was all about core gaming goodness.

- True 4 - K gaming.

They engineer the world's most powerful console,

they win back a lot of gamer trust with that.

This monster was almost like the rebirth of the Xbox brand to continue to make sure

there is no power greater than X as we thought about the future.

The most powerful console, it's a thing of beauty.

I think the big thing for me is just games.

How do we deliver the best games to people?

Get the games that our players love?

We said, you know, content is critical.

And one of the best ways

to get the best games is to invest in studios.

That's what we like to see.

But making games is hard, it's complicated,

it's about hey, can a group of people

actually effectively create something together?

We have to be really thoughtful

and mindful about respecting the culture

and the heritage of the studio but also infusing, you know,

kind of the power of Microsoft.

There's no magic formula for that,

you know, I think that's more of an art than a science.

One of the biggest missteps

that we learned from in the past was Lionhead.

We had already published Fable 1, and it was a hit, people loved it,

the beauty of that game, it was basically like a moving

stained-glass window, people wanted more, and so we bought Lionhead.

Those were good years.

The game was great.

Just everything came together.

But after Fable II, Kinect came along,

and the Fable-Kinect marriage just never really took.

And then Fable Journey was a passion project

for a lot of people, but I think it deviated

pretty significantly from the pillars of what made Fable 1 and 2 so popular.

Some very, very sad news coming out of Microsoft today.

They're shutting down Fable developer Lionhead Studios.

We acquired Lionhead in 2006.

Shut it down in 2016.

A couple years later, we reflected back on that experience.

What did we learn, how do we not repeat our same mistakes?

You acquire a studio for what they're great at now,

and your job is to help them accelerate how they do what they do.

Not them accelerate what you do.

I wish Lionhead were still a viable studio.

It is only when you fall that you learn whether you can fly.

When we launched Xbox One X in 2017,

we knew studio acquisitions were gonna be huge for us.

The studios we had were creating amazing games,

but we wanted to have more, and the challenges that

we went through with Lionhead taught us what to do this time.

Welcome to E3 2018.

So with the many failures of the Xbox One,

they're a distant second to Sony, but, to their credit,

they had been doing everything right, the potential is there at E3 2018

to regain that foothold in the upcoming next generation.

We know that exclusive games from our Microsoft Studios

are what originally turned so many of us into Xbox fans.

The first and greatest instance of us

showcasing what we do for players is what we do with our studios.

Phil, he took out the credit card,

went on a shopping spree, bought some amazing companies.

Started promising games.

I'm excited to welcome Undead Labs to Microsoft Studios.

It doesn't matter what your technology is.

If you don't have the games, we were done.

Content is king.

Ninja Theory.

Compulsion Games.

Brand new Microsoft studio. The Initiative.

Playground Games.

Yesterday was a huge moment.

You brought not 1, not 2 not 3, not 4, but 5 new studios...

The acquisitions kept coming at a blistering pace.

We'll be acquiring InExile Entertainment, Obsidian Entertainment.

We doubled the number of internal studios

to 15 internal studios and made a big group of acquisitions.

Double Fine Productions.

Buying all those studios, Microsoft focused back on the hardcore gamer.

We're highlighting 60 games for you.

Fourteen games from Xbox Games Studios.

And over 30 games premiering in Xbox Game Pass.

Let's jump in.

This volley of acquisitions created one of the largest,

most diverse catalogs in the industry.

But Microsoft had its eye on more target.

And it was a big one.

We're really delighted to reach this agreement with ZeniMax

and bring Bethesda into the Microsoft family.

The move adds eight more studios to Xbox's first-party portfolio,

including Bethesda Game Studios, ID Software, Arkane,

MachineGames, Tango Gameworks, and more.

What you really see us doing is broadening the opportunity

for people to participate in, you know, what is one of the world's,

you know, greatest entertainment and leisure-time activities.

It's a game-changer because it's bigger

than anything else we've ever done in gaming.

It's the third largest acquisition

in Microsoft's history, which still blows my mind.

So now more than ever like our commitment to games, is absolute.

Microsoft's commitment to keeping fans on their toes

was also absolute.

Good evening everyone!

Welcome to the Game Awards 2019, I'm Geoff Keighley.

Ah, world premieres are a big part of this show,

and you guys have a lot of expectations on the Internet, for things,

there are lots of rumors, lots of leaks.

It's pretty rare I think nowadays that any new tech doesn't leak

and like nobody knows that it's coming.

And then sometimes there's surprises that come out of nowhere.

Enjoy this.

Let's suppose that you were able every night

to dream any dream you wanted to dream.

A lot of dreams.

And that you could have the power...

I don't think anybody saw it coming.

It was something completely unexpected.

Uh...

Whoa is it Elden Ring?

Even the video was deliberately designed,

talking about power your dreams and, you know the visuals of that.

Let's have a surprise.

- Bioshock? And then...

Wait a minute, what was that?

Wait what?

I just saw a car race through, and then there was like a soccer scene

and then, by the time I saw Master Chief...

- That's Halo! - Halo. That's what I want.

And finally you would dream of where you are now.

And seeing the streamers that were streaming, and their reactions,

that element of surprise is so magical and so powerful.

- That's, that... - Oh, that's Scarlet?

Oh! Oh! yeah!

Xbooooox!

This is not the new Xbox console.

Wait, this is not the new Xbox console, what...

They're showing their new box?

What the heck!

For 18 years and three generations,

we've designed Xbox consoles to power your dreams.

Oh, my boy!

You dog.

Meet the Xbox Series X.

It was nuts-o! Because I had no clue it was coming, and I was there!

Our fastest, most powerful Xbox will set a new bar for performance.

Games are going to look better.

You know games are going to play better.

It is in fact the most powerful console

you can have in your living room right now.

Yes! Yes!

When we talk about freedom to play,

Project Scarlet is the formation of our future in cloud.

Microsoft meanwhile launching a video-game streaming service.

All your games can be streamed right into your phone, or your computer.

The same way the original Xbox bridged the gap

from early adopters with broadband, this powerful beast of a machine

that can play games locally, it's also going to connect to the cloud.

So it will bridge the gap between traditional,

in-the-living-room local gaming and cloud-based gaming.

We envision a world where you can play

any game with anyone on any device.

It is the next instance of what it means to game anywhere.

We're streaming from data centers around the world to people's cell phones.

We have thousands of people doing it, in three continents.

Like that's just crazy.

And I'll be damned if it doesn't actually...

I mean, it works. It actually works!

Where are we?

I'm a big believer

in the technology-access story of Project Xcloud.

Think about the way you could unlock community.

One of the things that we were really focused on with this generation

was making Xbox available and appealing to the widest audience.

I think we have some unique responsibilities

to bring people from different backgrounds into the experience,

and in order for us to succeed in that, we need to have the right services

and content and creators building things for all kinds of players.

It's about creating an opportunity

for those that would not have had it otherwise.

2.5 billion people on the planet

play video games today, half the connected world.

And that is the scale of opportunity a company like Microsoft should go after.

Being bold and making bets is part of the culture of what it means to be here.

I think that's true now, and it was true from the beginning.

- Where are we going? - Back to where it all began.

You know, we had some guys at Microsoft,

came and said, "We should do a console."

A Microsoft console?

It's insane to launch a game console when you're Microsoft!

You made frickin' Windows, and a spreadsheet.

Bill Gates took a bet on us.

Being able to do something very different and revolutionary,

was where we were getting our energy from.

Are you ready?!

If you think about where we were 20 years ago,

when I first moved into the games group,

my dad was horrified because gaming wasn't a career,

and gaming was something that nobody did.

One of the most incredible things

is this turning point in how gaming is viewed.

That evolution of people suddenly seeing the value

of the community that comes with gaming.

There's a fundamental change to the way we think about human interaction.

There he is!

We can have deep, meaningful relationships

with people a world away that we've never met in person.

11 years of playing together.

11 years, we finally see each other.

Woohoo! Ha ha ha ha ha!

Even in recent history, you know throughout 2020,

we saw that people recognized this as a way to have a social experience,

in a time when we had to be distanced.

The pandemic got people to rethink how they think about video games.

Children can sit and play Minecraft with friends and build

and create something and connect.

And at the core, that's what Xbox is about.

As Xbox continues to grow, I think it's going to continue

to shape the future of the gaming community.

It goes beyond how many units they sold,

it goes beyond which generation they won or were dominant in.

I think a company like Microsoft, we should stand for something more

than just what place we're in, and I want Xbox to be around forever,

and I want to be able to look back on it

and say we really used this opportunity to shape culture.

So I'm announcing the Xbox.

The future of console gaming.

A whole new platform that all of you are going to take in directions

that we can't even imagine, and the empowerment

that comes out of this is going to be amazing.

The power of X.