Kinecting Brands with Consumers

Brad Mann

Senior Business Development Manager

Xbox Advertising, Microsoft

2

Console Industry Overview

• $17.0B in 2011, includes hardware, software (retail) and accessories.

• Digital distribution has most growth due to tablets/smartphones

• Video games revenue is higher than music or DVD/Blur-Ray sales

Xbox LIVE – Nearly 40M Strong & Growing

US Xbox LIVE in

35 Countries

Xbox 360 Continues

to be #1 in

Console Sales

Now more than

66M Xbox

360s sold

66M+

More than

18M Kinects sold

18M+

Americas

EMEA

Asia –Pacific

Brazil

Canada

Chile

Colombia

Mexico

United States

Australia Hong Kong SAR India

Japan Korea

New Zealand Singapore Taiwan

Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy

Netherlands Norway Poland Portugal Russia South Africa Spain Sweden Switzerland United Kingdom

35 Countries With Multi-National Advertising; 18 With Local

4

Windows 8 Consumer Preview Launched February 29th

• Xbox LIVE extending

entertainment across Microsoft

and Windows devices

• Xbox LIVE:

• Games

• Music

• Movies

• Live TV

Kinect for PC Launched in February

Audience: Broader Than Ever

More Than 20.1 Million

Xbox LIVE users in the US

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58% HHI >$60K

49% > $75K+

46% Are Married

60% Are between 18

and 34 years old

62% Are Male

Xbox LIVE: More Than Just Gaming

Time On Xbox LIVE,

Much More Than Gaming

17% 40%

43%

Gaming Social

Experiences

7

Entertainment

Programming

Brand Display Business Group Copyright 2011 © Microsoft® . All rights reserved.

Source: Omniture, Mobile Page Views June1st – June 15, 2011, Nielsen NPM, April 2011

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Engage Consumers ALL Day Across 3 Screens

Heavy

Medium

Light

None

Xbox TV Viewing Intensity

40% of XBL users watch little to no “TV”,

Making Xbox Live a unique reach platform

February 29, 2012

28%

32%

32%

8%

Xbox Branded Destination Experiece

10

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A World of Entertainment App Providers