6 Q. When you say "getting us out of the
7 market," do you mean Microsoft stops selling
8 a console or do you mean Microsoft exits
9 gaming?
10 A. When I just stated it I was more of
11 the latter. Clearly for Sony specifically,
12 us exiting the console business would be
13 enough for them to be able to realize their
14 success with their console business. So,
15 they might have less, I might've over -- I
16 may be over-claimed my strategic thesis for
17 them in saying that they would desire that we
18 completely exit the gaming business. They
19 would -- us exiting the console business
20 would benefit Sony pretty directly.
21 Q. Right. I think we talked earlier
22 some hours ago, if Microsoft is not in a
23 position, right, to exit the console business
24 until either subscription or cloud uptake is
25 sufficient to offset the loss from losing
2 console business, correct, as a strategic
3 matter?
4 A. That's not -- that's not what I
5 said.
6 What I tried to share was we're
7 gonna get to a point before the launch of
8 a new generation, assuming we got to
9 Generation 10 launch, where we have not made
10 progress off of console that our strategic
11 thesis are -- are you there? I can't --
12 Q. I'm here.
13 A. Okay. Our strategic thesis around
14 gaming has failed, and I believe that senior
15 leadership team at Microsoft, and I might
16 even advocate for it, would decide to exit
17 the business, not as an offset of revenue, I
18 mean, we're ten percent of Microsoft's
19 revenue, we're not a something that where the
20 company needs to backfill the gaming revenue
21 for Microsoft's benefit, it is more our
22 strategy, given their three billion people
23 who play video games, if we never get out
24 of this 200 million battle -- battle for the
25 200 million people who want to buy a gaming
2 console, this isn't a business that Microsoft
3 should be in.
4 So, my point was not about a
5 replacement for the strategy, but rather
6 success on the strategy of meeting gamers
7 where they are.
8 Q. And when you say it's not a
9 business Microsoft should be in, do you mean
10 all of gaming, that Microsoft Gaming would
11 cease to be a business at Microsoft or just
12 console?
13 A. I would -- I mean all up 'cause
14 what I'm saying is, if you give us two or
15 three, four more years and we get to this
16 point where we haven't had success on PC in
17 that time frame and we haven't had success on
18 mobile, and I believe I was responding to
19 your question about what time frame do you
20 need to see success in PC and mobile, that if
21 we've seen basically no progress on those two
22 platforms, then I would say we're failing to
23 meet gamers' needs on console -- sorry, on
24 mobile, failing to meet gamers' needs on PC
25 and this console business we're a distant
2 third place to two entrenched competitors
3 without any real dynamic to cause that market
4 to change, so I -- I would -- not trying to
5 play victim, but I would advocate that the
6 company should look to deploy the 10,000
7 people that work on
Xbox now in something
8 where we thought we could actually make
9 progress.