Microsoft's pitch at E3 this year attempted to encompass core gamers while trying to attract more casuals, with games such as Gears of War 2 and Fable 2 feted alongside new franchises such as karaoke game Lips and a new Scene It (not to mention the avatar inclusions in the new Xbox dashboard). We spoke with the general manager of Microsoft Game Studios, Phil Spencer, about the company's upcoming holiday lineup, the importance of third-party exclusives (such as the Grand Theft Auto IV downloadable content), and if there are any plans to bring Metal Gear Solid IV to the Xbox 360 stall.

　　GameSpot AU: At your E3 2008 press conference, there was quite a lot of focus on casual titles, with games such as Lips, Scene It Box Office Smash, and more. Why does Microsoft think it's important to expand into this area?

　　Phil Spencer: Our vision has always been entertainment for everybody. Building a box that can find a home in houses around the planet. We're Microsoft and we're a platform company, we're not about some niche market. It's been part of our vision all along, and it started with a computer on every desktop. And you can think of the 360 as an extension. We're not trying to succeed in one narrow space--we understand that you need content for a broad set of customers to make the product inviting.

　　GS AU: But as of right now, is it fair to say that the 360 is still primarily a core gamer's console?

　　PS: I think at the end of this holiday, we're going to have 75 percent of our content E or T, if we use the ESRB ratings system. So 75 percent content in that broad to teenage segment--we have a lot of content across many different segments.

　　And then you look at partners like Square with a game that's pretty core but also very broad, Final Fantasy XIII, coming to our platform, it's a sign that the 360 is not just about a single genre, or a single customer, but really being a viable platform for the world's biggest franchises.

　　GS AU: You've got Gears of War 2, Fable 2, Banjo-Kazooie: Nuts and Bolts, and more coming this holiday. How strong a lineup is that compared to previous years?

　　PS: I would say it's a very strong lineup. Strongest is something that's probably easier to judge after the fact. But I think across the broadest set of entertainment experiences, this will be one of our most innovative years with games such as Lips. Lips for us as a first-party game is a great challenge, and we get to work with iNiS to get that game to market. At the same time we get to work on Fable 2, which is maybe our biggest first-party game in terms of number of people, and then Gears 2, which was a huge success the first time. I'm very proud of the breadth of what we're doing this holiday.

　　GS AU: Moving on to third-party titles, the 360 has exclusive downloadable content with Fallout 3 and Grand Theft Auto IV coming soon. You also have Rock Band 2 as a timed exclusive. Are these third-party exclusives something that MS will continue to strive for?

　　PS: Absolutely. Third-party support has been tremendous. We understand as a first party that we're never going to be the bulk of the portfolio. Our job is to innovate in interesting ways, and in some ways cut the path for the third parties.

　　GS AU: How important are these exclusives for consumers?

　　PS: I think content is the primary purchase decider for the consumer. They think about what experiences they want and what platform enables that. I look at the success that we had with GTAIV, a game that has traditionally been associated with a competitive platform. Our worldwide leadership in sales of GTAIV was due to something. Obviously we have a lot of 360s out there, and we made a promise that we're going to extend that experience for gamers. For me, as a core gamer, that would play a part in my purchase decision.

　　GS AU: So how often will we see Microsoft trying to score these exclusives?

　　PS: The individual way we work with partners really comes down to what the partner's trying to get out of the relationship and what we need based on our portfolio. So I don't think there's any blanket strategy--you look at each individual instance and ask what's the right thing for this relationship.

　　GS AU: One of the other major reveals for Microsoft at E3 this year was that Final Fantasy XIII was coming to the platform. How important is that for the 360?

　　PS: I'll put it this way: As a gamer from long ago, I do believe content drove my decision to purchase one console over another console. Watching franchises like Devil May Cry and GTA and now Final Fantasy come to 360 customers--as well as the exclusives we build like Halo, Forza, Gears of War, Banjo, and Lips--I think it rounds out the portfolio for customers. And Final Fantasy for me was the final piece to that puzzle for many gamers.

　　GS AU: Have you got a release date for FFXIII?

　　PS: [Laughs.] You'll have to talk to Square about that.

　　GS AU: There is of course another major platform exclusive that the 360 doesn't have, and that's Metal Gear Solid IV. Do you need that title?

　　PS: A lot of respect to the Metal Gear team--they've delivered a great game. And as someone in the game-development business, it's great to see to see a team deliver like that. That said, the franchises that we have which compete in the same space as [Metal Gear Solid IV], I'm extremely proud of.

　　I would welcome that team and that game on our platform. But when I really think about filling out the experience for our customers, other than that brand (Metal Gear Solid), I don't think that's an experience that's lacking on the 360 at a higher level. Where we're innovating is places like Primetime, and we announced 1 vs. 100, which is bringing the TV experience on our platform. And when I think about stuff I want to add to our platform, I think that's an interesting channel. What TV shows would be interesting? What would core gamers want to do? I think where we're going is beyond the games that are on other platforms today and thinking about innovation going forward.

　　GS AU: Just going on to some Aussie-specific issues, Microsoft is once again working with Krome Studios in Brisbane, this time for the next Scene It. How's that relationship going?

　　PS: Krome is a very talented studio with a rich history. The teams down there have shown over the years that they can build products, they're a disciplined studio, and they're a studio we very much enjoy working with.

　　GS AU: Are you going to buy them?

　　PS: [Laughs.] You know, the financial relationship with studios is something that is the outcome of our working relationship--I don't look at it the other way around. We're not trying to force some type of business relationship with any developer. We've got partners like Epic that we've worked with for many years and had tremendous success with, and studios like Turn 10 which we obviously own that we've also had success with. It's about the idea and success of the games.