New Xbox Experiences Reinvent Home Entertainment, and Everyone Is Invited

July 14, 2008

New Xbox Experiences Reinvent
Home Entertainment, and Everyone Is Invited

Xbox 360 promises best and
broadest entertainment lineup ever; more fun, social and simple-to-use

As Xbox 360 readies for the next
wave of audience expansion, Microsoft Corp. today announced a new Xbox
experience that will reinvent home entertainment from the inside out, changing
the way we play games, watch movies and TV shows, and even become contestants in
game shows. It all begins this fall with a bold new look and feel that is fun,
social and simple to use.

The announcement was made during the
E3 Media and Business Summit in Los Angeles. It came amid the unveiling of an
exclusive partnership with Netflix Inc. that will give Xbox 360 users instant
access to more than 10,000 feature films and television shows with a click of a

Also on the docket: The best and
broadest entertainment lineup the Xbox 360 video game and entertainment system
has ever seen. In its strongest broadening play yet, Xbox announced Xbox LIVE
Primetime, the next evolution in game shows slated for Xbox LIVE this fall; TV
shows and movies from world leaders in entertainment including NBC Universal,
Universal Studios Home Entertainment, SCI FI Channel and USA Network
domestically and Constantin and MGM internationally; and blockbuster games
“Lips,” “Rock Band 2,” “Scene It? Box Office Smash,” “You’re in the Movies” and
the much anticipated “Final Fantasy XIII.”

“We’re entering a new age in
entertainment, and Xbox 360 is uniquely positioned to become the heart of the
living room,” said Don Mattrick, senior vice president for the Interactive
Entertainment Business at Microsoft. “The new Xbox experience offers more
content than you can find from any device that connects to the television. That
convergence of entertainment and gaming will bring new people and more families
to the category, driving a record year for the games industry.”

“This year more than any other, Xbox
360 has something for everyone — whether you love playing games with friends or
are simply looking for the best in entertainment,” Mattrick said.

Netflix Jumps In With
Entertainment for Everyone

The exclusive partnership offers
Netflix subscribers the ability to instantly stream movies and TV episodes from
Netflix to the television via the Xbox 360 video game and entertainment system.
Xbox 360 will be the only game console to offer this movie-watching experience,
available to Xbox LIVE Gold members who are also Netflix subscribers at no
additional cost.

From the Netflix Web site,
subscribers simply add movies and TV episodes to their instant Queue, which will
appear automatically on the TV screen via Xbox 360. Once selected, movies will
begin playing in as little as 30 seconds. In addition to instantly streaming
Netflix movies to the TV, Xbox LIVE Gold members can browse and rate movies,
fast-forward, pause and rewind, all using either their Xbox 360 Controller or

Netflix on Xbox 360 will launch this
fall with the release of the new Xbox experience, a new generation of games and
entertainment experiences that will be available for Xbox 360 this fall.

The New Xbox Experience

The new Xbox experience represents
the first time in history that a mass market consumer electronics device has
been reinvented through free software, giving people more fun and intuitive ways
to interact, play and enjoy entertainment.

“Xbox LIVE is the world’s
fastest-growing online social network on TV,” said John Schappert, corporate
vice president of Interactive Entertainment LIVE, Software and Services Business
at Microsoft. “We doubled our membership the past two years, growing from 3
million to 6 million, and then from 6 million to 12 million. And today, we are
adding a new member every five seconds. With the best and broadest social
entertainment experiences launching this fall, the future is limitless.”

Some of the features that make
the new Xbox experience groundbreaking are the following:

• Entertainment without limits. With
LIVE Party, bring your favorite games, TV shows, movies and pictures to life by
sharing those experiences with friends, wherever they are around the world.

• Express yourself. With the new
Xbox 360 experience, gamers can personalize their entertainment like never
before. They can create their own avatar, designed exclusively by Rare Ltd., and
jump into a party with friends from around the world.

• “Must See TV” and much, much more.
The biggest names in entertainment worldwide, such as Netflix, NBC Universal,
Universal Studios Home Entertainment, SCI FI Channel, USA Network, Constantin
and MGM are bringing their content to Xbox 360.

360 Degrees of Entertainment

The 2008 Xbox 360 entertainment
lineup of games, movies and TV shows is its best and broadest ever. Whether for
fans of action, role-playing, racing, sports, strategy, party or
action-adventure games, Xbox 360 has the biggest blockbusters and the most
exclusive content in 2008 and beyond:

• The new game show. The new Xbox
LIVE channel Xbox LIVE Primetime represents an all-new way to play. A collection
of virtual game shows such as “1 vs. 100,” Xbox LIVE Primetime allows thousands
of gamers to become contestants from their living rooms, playing together
simultaneously, live with content that is always fresh and relevant. The global
phenomenon “1 vs. 100” is created by Endemol, the world’s largest independent
production company and the producer of the hit show “Deal or No Deal.” Xbox LIVE
Primetime is available in North America, France, Germany and the U.K.

• Blockbusters. “Final Fantasy XIII”
will be available on Xbox 360 at launch in North America and Europe. Xbox 360 is
the only place gamers can play the year’s biggest games, such as “Gears of War
2,” “Resident Evil 5,” “Fable II” and exclusive “Grand Theft Auto IV” episodes.

• Music. Xbox 360 is the preferred
stage for all the best music games, including “Lips,” “Rock Band 2,” “Guitar
Hero World Tour” and “DanceDanceRevolution® UNIVERSE3.”

• Family. Xbox 360 gets the whole
family playing with titles such as “Banjo Kazooie: Nuts & Bolts,” “Scene It? Box
Office Smash” and “Viva Piata: Trouble in Paradise.”

• Sports. Xbox 360 remains the best
place to play sports titles, including leading franchises like “Madden NFL,”
“Tiger Woods PGA Tour,” “NBA Live,” “NHL 2K” and more.

• TV and movie entertainment. Xbox
is home to the best TV and movie entertainment, including exclusive games such
as “You’re in the Movies” and “1 vs. 100,” exclusive films and TV from Netflix,
and the world’s largest online library of on-demand high-definition TV shows and


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2008 News and Announcements