yes

Methodology

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2013 Front End Process
Tentpole Idea (1 or More), e.g. Kinect, Cloud Rendering, Glasses
Value Proposition (i.e.
benefit/utility and
Consumer
Developer
Operator
OEM
competitive
differentiation)
Signature Experiences (i.e.
unified perspective of the
Signature Experience 1
Signature Experience 2
Signature Experience 3
Signature Experience 4
desired consumer flow)
HW/Content/Services
H/W Platform
Content
Service Platform
Cross Platform
Platform Requirements
Requirements
Requirements
Requirements
Requirements
Engineering
Specifications/
Hardware
Content Portfolio/Genres
Cloud
Cross Screen
Content Portfolio
Specifications
Plans
Infrastructure/Services
Architecture

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2013 Overview

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CONFIDENTIAL
FOR DISCUSSION PURPOSES ONLY
Why do we need a next gen Xbox in 2013?
Kinect V1
Xbox 360
Business Needs and Competitive Threats
Xbox 360 Limitations
*
Gen 7 (Xbox 360) console business will decline in
*
No full fidelity AAA Games + Kinect V1 sensor
2013.
*
Will not support full range of XTV platform
*
New threats from Apple (AppleTV) and Google
scenarios (e.g. 1080p video + Video Chat +
(Google TV).
HTML5 Apps)
*
Gen 8 consoles will launch from Sony/Nintendo
*
Lacking modern entertainment capabilities (e.g.
(CY 2012-CY 2013).
Blu-ray, Native 3D output, 2x1080p in/out)
*
Can't run "always on"/low power states
*
Can't run multiplexed or concurrent applications
and services
4

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CONFIDENTIAL
FOR DISCUSSION PURPOSES ONLY
What are the Opportunities for a Next-Gen Xbox?
Modern Entertainment
Competitive
Appeal to Broad Audiences
Scale The Business
Box
Differentiation


Blu-ray
Next-Gen AAA games
Full XTV support (i.e.
Embedded platform
(4x-6x > Xbox 360)
linear TV, TV apps, DVR,
architecture (unified
Native 3D & Flexible
Video
Always on)
hardware portfolio)
Next-Gen Sensors (Kinect
output/Compositing
V2, Glasses)
Online Content (Netflix,
*
Console
WebApps/Content/Svcs)
Video Acceleration (2xHD
Exclusive 720 content and
*
STB
video dec, 1xHD enc)
experiences
Video/Music Marketplace
*
Embedded TVs
Multiple Power States
Concurrent
Media Hub
apps/scenarios (i.e.
*
Phones
* Full Power
multiplex/concurrent
A/V form factor
* Media Playback
apps)
*
Slates
* Idle
Quiet. Cool. Green.
* Streaming
*
Glasses
* Standby
5

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CONFIDENTIAL
FOR DISCUSSION PURPOSES ONLY
What is the IEB 2013 Consumer Offering?
Xbox 720
Kinect V2
Hardware
Content
Services
Xbox 720
Core Titles
New Dashboard
- 4x-6x Games >Xbox 360
- The best core content
- NextGen interface (NUI
(Halo, Fable, GOW, etc)
enabled)
- Full XTV Support
- ODD (Blu-ray, CD/DVD)
Broad Gaming
NextGen Service
Experiences
- Online/Web content
- Kinect Titles (Kinect
Sports, Kinectimals, New
- Exclusive to Xbox 720
Kinect V2 Sensor
genres)

- Better 3D Play Space
(closer, wider, deeper)
Linear TV
- Improved Voice Rec.
- Bring your own service
- OTT video service
- 4 Player tracking
- Dedicated Processing
HD/3D Movies
- Improved HD RGB Cam.
- Video Marketplace

- Blu Ray
XTV Applications
- TV App Store


6

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CONFIDENTIAL
FOR DISCUSSION PURPOSES ONLY
When: Xbox 720 versus the competition
* PRODUCT: Apple TV - next generation

* PRICING: $99 (just announced and in market)
* PRODUCT: ONLIVE Micro Console (announced)
* KEY FEATURES: Streaming, HD, Rent all iTunes
* PRICING: $4.95/Month+Games.Console Est
Content + Netflix. Small, Cool and Quiet (no fan), and
<$99
cheap.
* KEY FEATURES: AAA Games, Instant Access,
* VALUE PROP: 3Screen Synchronized Media. Works
Multi-Player
w/your iPxxx
* VALUE PROP: AAA Gaming For Less (initial )$
HOLIDAY: 2010
HOLIDAY: 2011

HOLIDAY: 2012
HOLIDAY: 2013
[KINECT]
[KINECT for CORE]

[XTV on 360]
[XBOX 720 + KINECT v.2]
* PRODUCT: Google TV (Announced Android OS
* PRODUCT: Wii2 (heavily
* PRODUCT: PS4 (Speculation)
Extension)
rumored/blogged)
* PRICING: <$399 (historical
* PRICING: Free to Consumer. Free to Partner.
* PRICING: <$249 (historical assumption)
assump.)
* KEY FEATURES: Search, H.264, Adobe Flash, Full
* KEY FEATURES: HD, Digital Dist, Local
* KEY FEATURES: 3D, BluRay,
Browser
Storage, NUI
GoogleTV
* VALUE PROP: Simplified EPG: broadcast +
* VALUE PROP: HD Video + Accessible
* VALUE PROP: Tech Forward. Al -
internet
Gaming.
in-One
7

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


* Better HD RGB Camera
True 1080p and Full 3D
8

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How will we do it - Yukon Architecture Snapshot
Full Featured system
Core architecture
"Always On"
CPU Cores
Video/Audio Accel
6-8x ARM/X86 @ 2GHz
EDRAM
CPU Core
CPU Core
2HD Dec, 1HD Enc, DSP, XMA
1x Eagle @ 2GHz
>32MB
2x ARM/X86 @ 2GHz
GPU
Video Output
64ALU @ 1GHz
GPU
Memory
Flexible Resize / Compositing / 3D
48ALU @ 500MHz
Application
4GB, 128bit DDR4
NUI Offload
QoS for App Pool
System
Skeletal Tracking Accel.
CPU Cores
Mass FLASH Storage
Base IO
3x PPC @ 3.2GHz
MLC
Security System
USB3.0, HDMI, DisplayPort, GigE,
Back-Compat
PCI-E, SATA, 802.11n
Device Specific IO
Core system designed to be scalable in
Flash Cache
Storage
HSDPA, WiMAX, W-HDMI, ATSC,
frequency / number of cores
SLC
ODD, HDD
DisplayPort, LVDS
Perf Target
System Cost
Process
SOC Power
System Power
SOC Cost
Standby Power
(x360)
(COGS)
22nm SOI/
~8x
~50W
~120W
~$50
~$225
<500mW (SOC)
28nm G

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How will we do it - Key Hardware Features
Licensable architecture (both for incoming and outgoing licensing)
Power consumption optimized architecture ( "always-on" operation, low power media playback)
Binary compatibility for title through cost reductions (10yr lifecycle)
Support for alternate form factors / devices with different total system feature set
Split Application/System Resources: Allows Title compatibility through cost reductions and different device types
Modular design to facilitate SKU updates later in lifecycle
Latest Core Technologies: DX11.1+, 3DTV
Updated Security Architecture: Apply learning from Xbox360
Dedicated Video/Audio Engines (decode, encode, transcode)
Embedded Memory: eDRAM, option for eSRAM
Flexible IO: Devices change over time and different form factors. Likely 2x2 802.11n WiFi, USB3, GigE (WakeOnLan), SATA
Coherency: All devices (GPU/IO/CODECs/etc.) go through MMU, can be coherent with CPU

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