Innovation Showcase B: The Future of Entertainment Presenter: Shawn McMichael, Director, Global Sales, Marketing & Service, Entertainment & Devices - Advertising Business Group

1. The Future of Entertainment Shawn McMichael Interactive Entertainment Business Microsoft Corporation

2. “ The brief history of living room entertainment… ” ... and the death of engagement?

4. Less parental control of content consumption

5. Social interactions include people outside the home

6. Gaming competing with media

8. Case Study: The Evolution of Entertainment on Xbox available in more than 26 countries launched in 2 countries 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 Total Members (in Millions)

9. “ Case Study: Game Shows Meets Social Media “1 vs 100” with on Xbox Live 1 vs 100

10. “ Case Study: Television Meets Social Media “Party Mode” with SkyTV

11. “ Cast Study: Linking User Identity Across Screens Xbox LIVE on Windows Phone 7 Avatars Friends Achievements Great Games ACHIEVEMENT UNLOCKED

12. 9 Audience evolution

13. 10