Microsoft (MSFT) X-Box CFO Kevin McCarty

Microsoft (MSFT) X-Box CFO Kevin McCarty discussed how game downloadable extra content is increasing the amount players are spending

“I see the industry having more micro transactions in game, that way there’s no cap as to how much a player could spend in the game.  For example, a player might spend $15 on on buying the physical disc to play the game and then may spend an additional $15 or more to acquire certain in game abilities such as map packs or rec packs.”

Microsoft (MSFT) X-Box CFO Kevin McCarty how he sees virtual reality evolving

“For VR, the big publishers have a chicken or egg problem.  They tend to not make big bets on any platform until it has traction.  So I think with VR you’re going to see a lot more indy developers make games to start out with until the concept is more proven.  I think it’s ultimately going to take a real deep in game experience to launch the VR industry to where it needs to be and draw in the large video game publishers.”



Source: E3 Gaming Conference, Group analyst meeting at JW Marriott Hotel

SK Additions:

Changed our KPIs from sales volumes to monthly active users

Need to get to 6 teraflops for high res VR

Consumers who buy consoles like the appliance like elements of it

Oculus and HTC vive are both running on Windows….the true spirit of Windows is allowing anybody to run anything on top of it.

There’s a fine line between monetization and annoying

VR is going to be tricky for the publishers. There’s not a big installed base so there going to have to produce things without guaranteed returns. They will probably do micro experiences to experiment in VR. You’ll see a lot more indie development early on. Smaller studios. It will take a breakout experience to get VR really going.

First gate to the digital world is to have some sort of payment instrument on file. You do have bandwidth constraints in some regions.

I don’t want to use the word generation…We’re hoping to move away from a generational approach to a monthly active user base

It’ll take prices coming down and broader content to get mass adoption of VR

We spent the last few years refocusing on the gamer. We had focused on broader entertainment with Kinect etc.

If Sony also says they’re 6 teraflops and they’re $100 cheaper that would be concerning.