We’re just at a point in the cycle where you’re seeing more sequels. I can tell you we have other new properties that are unannounced that we feel very good and are very confident about. We will continue to have new IPs alongside the franchises in our portfolio, no question.

In 2007 we'd have made a joke about their "new" men-with-guns game, but we're now looking forward to a "new" family quiz game instead!

Part Two of Inside Xbox Live [Edge]

I'll admit MGS has not had success in the MMO space, and that happened under my leadership, so I take full responsibility. It's a tough and challenging space that's evolving all the time – a lot of shifting sands. We haven't been able to crack the code.

There there Shane, chin up! What do we do when we fall off the horse?

Shane Kim Talks 360 MMO Washouts [Edge]

Why bother redesigning the Xbox 360's interface? Shane Kim is here to tell us. Oh and Kim totally gets in Sony's face. No, not really. He does talk a minute amount of smack, but no gang signs were thrown.

Microsoft's E3. Was it fun for everyone or fun for just casual gamers? I think it was more about the casual gamer, Shane Kim? Not so much. Kim also isn't a big believer in Nintendo's big, blue ocean, it seems. Why stick to your own slice of the Pacific, when you can have it all.

Shane Kim: Japan is a "longer-term effort" [GI.biz]

Kim, who headed up the studio for four years, will be replaced by Phil Spencer, who formerly headed up the Microsoft Game Studios in Europe.

“We’re strategically positioning the leadership team to drive every aspect of the Xbox business to new heights,” said Don Mattrick, senior vice president of the Interactive Entertainment Business. “I firmly believe that Microsoft will lead the next great innovations in games and entertainment. Today’s organizational announcements align us to accelerate this expansive growth.”

Microsoft has not yet found a replacement for Bell who is said to be leaving to "pursue other opportunities outside of Microsoft."

“The time is right for me to pursue my life’s passion of consumer brand marketing and the creative and services that drive it.” Bell said “Coming from automotive, and now technology and entertainment, I am excited to expand to new industries and categories.”

Hit the jump for the full release and more Mattrick-y quotes.

Interactive Entertainment Business Leadership Team Positioned to Drive Next Wave of Growth and Audience Expansion
Microsoft announces new leadership roles for Shane Kim and Phil Spencer and the departure of Jeff Bell.

REDMOND, Wash. — June 12, 2008 — Microsoft Corp. today announced a new leadership structure in its Interactive Entertainment Business, assembled to align with future business development opportunities.
Shane Kim will assume the role of corporate vice president of Strategy and Business Development, a newly established role in Microsoft’s Interactive Entertainment Business. In addition, Phil Spencer, a Microsoft Game Studios veteran for six years, will assume leadership of all first-party development and publishing efforts worldwide. Both leaders will report directly to Don Mattrick, senior vice president of the Interactive Entertainment Business.
After spending four and a half years leading the transformation of Microsoft Game Studios into a world-class entertainment publisher, Kim will now explore new growth opportunities with partners across all parts of the global Interactive Entertainment Business. His focus will be on future external relationships and partnerships, as well as developing growth strategies for the entire business.
Formerly the general manager of Microsoft Game Studios Europe, Spencer will return to Redmond from the U.K.to take on his new role as general manager of the global Microsoft Game Studios business. Spencer will oversee the creation of new, unannounced franchises that aim to attract new audiences. His teams will foster some of today’s most beloved entertainment franchises, including “Halo,” “Gears of War” and “Fable,” by continuing to partner with the industry’s best developers to deliver the best games for the Windows and Xbox platforms.
“We’re strategically positioning the leadership team to drive every aspect of the Xbox business to new heights,” Mattrick said. “I firmly believe that Microsoft will lead the next great innovations in games and entertainment. Today’s organizational announcements align us to accelerate this expansive growth.”
After two years of driving a cultural change in the way Microsoft markets its entertainment brands, Jeff Bell, current corporate vice president of Global Marketing for Microsoft’s Interactive Entertainment Business, has decided to pursue other opportunities outside Microsoft. Bell will remain at Microsoft through the summer, working with Mattrick to ensure a smooth transition of his responsibilities. In the interim while Microsoft searches for Bell’s replacement, Matt Barlow, Charlotte Stuyvenberg and Jim Merrick, all day-to-day product marketing and marketing communications leaders in the Interactive Entertainment Business, will carry forward global marketing initiatives for the business group.
“The time is right for me to pursue my life’s passion of consumer brand marketing and the creative and services that drive it.” Bell said “Coming from automotive, and now technology and entertainment, I am excited to expand to new industries and categories.”
“We thank Jeff for his achievements and contributions to Microsoft and the Xbox business. His innovative marketing programs included award-winning Xbox brand marketing campaigns, as well as world-renowned creative for ‘Gears of War’ and ‘Halo 3,’” Mattrick said. “We wish Jeff nothing but the best in his future endeavors.”

I know we're talking about Final Fantasy here, but you really have to question, is it really enough to overcome people's reservations about Xbox 360 in Japan? I don't know. But I know that it would have to be a heck of a lot of money and it would be very risky to do that.

In short, no. Kim does make a good point, saying that success in the Western market is forcing companies to be more open about developing for the Xbox 360. Nice to have that in your back pocket when you're so fucked on their home turf.

Shane Kim Interview [Kikizo] [Pic]

...you know, we have a great internal racing studio in Turn 10, the creators of Forza Motorsport. And our goal is to roll the studio so that they can do more creative execution within the racing space. So you can imagine a future where they would develop a new version of Project Gotham Racing.

Shane Kim Interview [Kikizo]

We're thankful that Mr. Kim has moved the goal posts, as we had resolved ourselves to the fact that the whole conflict between multi-billion dollar corporations was already over. Thankfully, we have something to look forward to. Shane's lithe dodging of Game|Life's questions about motion sensing controllers for the Xbox 360 and future Rare titles are equally rewarding. Don't miss it.

Microsoft's Shane Kim: First to 100 Million Wins [Game|Life]

I'm very happy we didn't get into it, because launching a handheld platform is like launching another Xbox 360. You have to be fully committed, as an organisation, from a resource standpoint, to doing that. Frankly we've got a lot on our plate with Xbox 360 and Xbox Live. We don't have any experience in that space. Our content assets don't naturally lend themselves to driving success in that particular market.

So we're happy to let Sony and Nintendo slog it out. I do think mobile is probably the more important platform in the future, and the number of Windows mobile devices and hardware that's capable of running Windows mobile in the future is really a compelling opportunity, and one where we don't have to worry about launching a new hardware platform too.

We said from the beginning that we expect the Xbox 360 to have a long tail. Clearly we didn't do that with the original Xbox, which was a strategic decision we made. Admittedly, we don't have any experience doing this, but we're pretty confident 360 will have a long tail.

Continuing, he says:

You're going to continue to see technical innovation, it might be additional capabilities to the current format — but honestly we haven't made those kind of decisions yet.

As far as technical limitations? We're not seeing those. I think there's the potential for more multi-disc titles, we've already shipped a few of those already. But I don't this is so drastic that people will start saying that Microsoft missed a trick with not using Blu-ray. I just don't believe that.

What we've been able to see with the vast majority of titles on Xbox 360, is the range of experiences that haven't been restricted with the lack of a hard drive and a larger capacity disc.

But, we're only a little over two and a half years into the console's life? What will it be like in, say, three years?
Shane Kim on console life [CVG]

In the late 90s Rare established themselves as a top-tier studio, producing such classics as GoldenEye and Donkey Kong Country for Nintendo. But in 2002, Microsoft bought up the company and prepared to have the studio start work on some of the marquee titles for their upcoming Xbox 360.

I told Kim that back before the Xbox 360 launched I had heard that Rare's Perfect Dark Zero was meant to be the platform's launch title, the reason gamers would take notice of the 360 and decide to buy into the new platform.

When the game finally hit, with the launch of the 360 and Rare's other title Kameo, it was met with a mixed reception, certainly not the sort that Microsoft had bet on.

Is Rare, I asked Kim, a developer that better suited to the audience and platforms of Nintendo gaming?

The short answer, Kim said, is no. But he did acknowledge that Rare hasn't yet met it's full potential on the Xbox 360. Neither Perfect Dark Zero or Kameo were the massive hits that Microsoft expects and Viva Pinata, he said, was a game that attracted a casual audience but was much deeper than that sort of gamer expected or was interested in playing.

But Rare's upcoming titles could turn that around. Viva Pinata: Trouble in Paradise, for instance, hopes to fix that disconnect between the audience it attracted and its accessibility by adding online and local co-op and tweaking gameplay.

And while Banjo-Kazooie: Nuts & Bolts isn't a true sequel to the franchise, its concept, a vehicle platformer, was entirely the idea of Rare and its developers.

Hopefully today will give me a chance to see if Rare has been able to turn it around and get back to making games like Goldeneye rather than Grabbed By The Ghoulies.

Tsunoda, who was unfortunate enough to be sitting right next to me, spent much of the evening trying not to answer questions about Gears of War 2 and his new role as the game's general manager. He said he felt fortunate to be working at Microsoft Game Studio and in particular to be working with Cliff Bleszinski and the folks at Epic Games.

MTV's Stephen Totilo and I tried to pin Tsunoda down on how the game would fit into the Gears universe. Was it, Totilo asked, part of a trilogy. We haven't decided yet, Tsunoda responded and then tried to change the topic, saying that the game has plenty of things to do in the way of improving on the original title.

Multiplayer, for instance, has a lot of potential, though he can't talk about it quite yet. Cover will be destructible this time around, he added. And by cover he doesn't just mean the rock walls and building remnants, he's also talking about grabbing bad guys and hiding behind them, something Tsunoda referred to as "meat shields". And yes, it seems that these meat shields will be "destructible" too.

What are they doing for the ladies this time around, Totilo wanted to know. Are they going to make it more accessible or interesting to women somehow.

Tsunoda sort of ducked the answer, but when I asked him if they were considering perhaps adding a romantic interest to the plot, he said yes, there would be a love interest this time around.

Given the tone of the dinner, it was hard to tell if he was serious or joking, but either way it raises an interesting point: Should the Gears of War sequel have more interpersonal relationships, should there be a love interest in the game?

I think that one of the things that hurt the original title was its story, in particular its ending , so building in a relationship, one that could be used to make the game more emotion certainly couldn't hurt. At least that's my take. What's yours?

Check out Totilo's take on the dinner as well.

[Pic from MTV Multiplayer]

When we first entered into the development and agreement of the development of 'Marvel Universe Online,' we thought we would create another subscription-based MMO. And if you really look at the data there's basically one that's successful and everything else wouldn't meet our level or definition of commercial success.

Microsoft's Shane Kim On 'Fable 2,' Why Marvel MMO Was Canceled And More [MTV Multiplayer]

Schiesel began his line of questioning by addressing some of the Microsoft's talent losses over the past year, specifically inquiring into the departure of star developer Bungie. "I think that was a case of a creative team really wanting to just be independent," he said, brushing off rumors that the team felt creatively stifled, saying "No studio had more creative freedom within Microsoft than Bungie."

On the rest of the departures, Kim called those acquisitions "the nature of the industry", explaining that the company doesn't dictate what other publishers do.

Kim responded to questions that the Xbox 360 line-up for 2008 appeared to be a bit thinner than that of 2007, "I think the pipeline is very stacked. You just don't know about it yet." The Microsoft exec was quiet on currently unannounced titles, but did point to a trio of top-tier games the publisher will focus on in Halo Wars, Alan Wake and Fable 2.

He pointed to Microsoft's first-party studios need to shoulder the burden for creating exclusive content for both the Xbox 360 and Windows platform, saying that they're watching competitors like Sony and Nintendo's first party offerings closely. "I don't think anyone should underestimate Sony," he said, calling both "formidable" competitors. "To count them out would be a foolish mistake."

While he praised the Wii's casual market acceptance, calling it "great for the entire industry", he questioned how financially successful it was when compared against Microsoft's box. He pointed to 40% of the game-buying public's dollars going toward Xbox 360 games, hardware and accessories. "How are they using the console?" he asked of the Wii consumer "Are they buying a lot of games?"

When asked if Microsoft being outsold by Nintendo worldwide represented a failure, when compared to the company's goal to be number one in any space it's in, Kim said that "No one should be surprised by Nintendo." Kim tempered that praise, telling Schiesel "I think it's way too early to declare a winner here."

Kim said not to expect a lifespan for the Xbox 360 on par with its predecessor, pointing to the strategic benefit of launching a year before a pair of current-gen competitors.

But what about new video game ventures for the company? Microsoft's Zune, Scheisel added, was behind the curve in the gaming space when compared to its biggest competitor, the iPod. While Kim left the door open, saying "Never say never", he was realistic about the investment required. "Clearly it's a big business, but launching a portable device, it's just like launching an Xbox 360. You have to step back and ask devoting whatever resources you would have to make the Zune a multifunction device, is that really the best way to go from a company standpoint?"

I won't spoil number one, but it's certainly the most expensive of the lot. Let loose the finger pointing and HAHA-ing!

TOP 10 BLUNDERS OF 2007 [Next-Gen - thanks, Duane!]

This weekend's 1UP Yours podcast re-ignited the Microsoft rumor mill, hinting none-too-subtly that Microsoft Game Studios head Shane Kim may be the one on the way out.

When discussing last week's rumor, 1UP's Garnet Lee teased N'Gai Croal with the hint "Hey, N'Gai, do you watch any Nickelodeon like 'Something Possible'?" when the topic surfaced. One could then assume that Lee was referring to the cartoon "Kim Possible" and that the reference was in relation to Mr. Kim from Microsoft. How's that for confirmation?

Bettenhausen chimed in with the "Rumors about Microsoft canceling games and rumors about people leaving Microsoft aren't new. We've been having these for five years. And, the leakiest company around, a lot of times these things turn out to be true." Former GameVideos director Mark MacDonald later tempered the rumor's reality with a warning that the rumor was "something you kind of just heard" as opposed to something that sounded more confirmed.

To hear more of the discussion, skip to about (this is not a typo) 2 hours, 40 minutes into the criminally long recent podcast.

1UP Yours - November 16, 2007 [1UP]

Instead, expert analyzers like David Cole of DFC Intelligence and (wait for it...) Michael Pachter of Wedbush Morgan focus on the meaning of the departures, closings and acquisitions in regard to how seemingly unimportant they are in the big picture.

Pachter told GameDaily BIZ that "I'm not sure that MGS is any worse off" highlighting the still in-house teams at Lionhead and Rare, adding that the company has a solid track record of securing exclusive and "there is no reason to believe that they won't be able to manage several more exclusives going forward."

Todd Greenwald of Nollenberger Capital Partners deems the question practically moot, responding "I think the better question is - why isn't Sony doing more to acquire 1st party studios, or at least secure more 3rd party exclusives? They're the ones who need to be doing this, not Microsoft."

More stinging analysis at GameDaily BIZ.

Microsoft Game Studios' Foundation Resting on Quicksand? [GameDaily BIZ]

Sure, Kim's probably a busy man, keeping watch over the company's first party software releases, but his reaction to Game Informer's puzzlement over his shocker that one of the "most important, subtle announcements at the Xbox 360 briefing is that Resident Evil is coming to Xbox 360" is nothing short of comedy gold.

The exchange:

GI: But we knew that two years ago.

Kim: What?

GI: Resident Evil. It was shown at TGS two years ago.

Kim: No, but coming to Xbox 360.

GI: Yeah. It was at the press event.

Kim: I don't think so.

GI: I'm positive. I was there.

Kim: Really?

GI: It was shown at both press conferences.

Kim: That RE5 was coming to...?

Oh, Shane! Wait until Kim hears about the Microsoft's purchase of Rare! And that Scene It? is coming exclusively to the Xbox 360! He's going to be so pleased.

Cutting Through The Spin: The Shane Kim Interview [Game Informer via NeoGAF]

I still am a believer in our ability to do well in Japan. We're not going to win in Japan. We know that. That was never our goal, this generation, to win in Japan. We can win this generation without winning Japan. But we can do well in Japan. Now that's going to take a long time.

We're going to let Sony and Nintendo beat the hell out of each other [in the portable arena]. When you launch a portable device, you are launching a new platform. So, you're fighting a war on two fronts.

Microsoft's Shane Kim let that cat out of the bag in his recent chat with Dean Takahashi, revealing that the real reason is "all of the special sauce that grows around it." Gross. I never knew about the sauce. Anyway, he speaks briefly on the future of the Halo franchise after the final chapter in Bungie's Halo trilogy has been told.

There are more stories to tell in the Halo universe. We are building a real-time strategy game with Ensemble Studios. That is going to be very successful when you combine their expertise in that genre with the amazing back story of Halo. So I do agree that I think the universe itself will support a lot more. With respect to this story, Bungie has been very clear. This is the end of the Halo trilogy.

And I'm sure the end of the franchise altogether. Kidding! They'll pick the Halo bone clean, no doubt. Michael McWhertor

Interview With Shane Kim, head of Microsoft Game Studios, on Halo 3, Taking On The Nintendo Wii, And Making The Xbox 360 Appealing To The Mass Market [Mercury News]

With the release of FASA Studios' Shadowrun for the 360 alongside a $49.99-priced Windows Vista version, that $59.99 price point for the 360 edition might be considered puzzling. As the game's release date hits smack in the middle of the Halo 3 beta, mere months after Vista's public release, it seems like Shadowrun will be facing an uphill battle of acceptance.

So why the premium price? Newsweek's N'Gai Croal asked of Microsoft this very question and MS VP Shane Kim's reply is quite astounding. Mostly astounding in its incomprehensibility, but astounding nonetheless.

I'd quote it, but I don't know what to quote. You'll have to read it in context. But be careful—you might just scratch your scalp clean off deciphering the PR-speak. Michael McWhertor

Shadowrun for Windows Vista: $50. Shadowrun for Xbox 360: $60. First-Hand Explanation of the Pricing Disparity From Microsoft Game Studios: Priceless. [N'Gai Croal's Level Up]

If you missed the news check out the full press release on the jump, but in a nutshell Microsoft announced the Japan price and date for the HD-DVD add-on for the Xbox 360. More importantly, they announced that the fall software update for the console will allow the console to output game and movie content in 1080p resolution. That's right I said movies and games.

The interview was exactly 10 minutes long, so naturally I spent nine minutes trying to figure out just how a console with no HDMI out would gain 1080p output with a software update.

Kim was clear that the console could support true 1080p out.

"If it is running at 720p we will up-res it to 1080p, if it it's already 1080p then we can display it in 1080p," he said. " This is a great example of our console's ability and the great advantage of being a software company."

Kim said that while the console will soon support 1080p out, it will not have an HDMI out.

"We have the ability to output either through VGA or component. We have no HDMI announcement now," he said. "We do have the capability to deliver the software and, if needed, the hardware."

I pointed out that some movie studios have said they will use HDMI output as a form of copy protection and Kim acknowledged that if a studio uses that scheme then HDMI will indeed be required.

While Kim expects that some third-party game developers will create 1080p games, he said that 720p will likely remain the norm.

"We believe 720p is the sweet-spot for high definition," he said, adding that Microsoft Game Studio titles will, for now, continue to be created at 720p.

While the release of a low-cost HD-DVD player for the 360 could help make the console more competitive against Sony's upcoming PS3, Kim things the main development that could help jumpstart 360 sales in Japan are game titles.

Kim said that Microsoft plans to have 110 titles available for the 360 by the end of the year in Japan and 160 in North America.

"It's all going to be about the content and how customers value the content," he said.

Hit the jump for the official press release with details on new Live games, the Pac-Man World Championships, Xbox 360's HD-DVD player, some new titles and XNA support in Japan. Brian Crecente

Microsoft Showcases Library of Nearly 110 High-Definition Xbox 360 Games at the Tokyo Game Show
"Blue Dragon" Leads Holiday Lineup of Games; "Pac-Man" World Championship, Xbox 360 HD DVD Player in Japan and 1080p Support for Xbox 360 unveiled.

TOKYO — Sept. 20, 2006 — Today at the Tokyo Game Show 2006, Microsoft Corp. delivered information on new and improved entertainment experiences for Japanese gamers, including details of the Xbox 360 library of nearly 110 high-definition games available this holiday season in Japan, which will include the highly anticipated "Blue Dragon" from Microsoft Game Studios. Microsoft also paid tribute to NAMCO BANDAI Games and "Pac-Man," announcing that the first "Pac-Man" World Championship will be held in early 2007 using Xbox 360 and Xbox Live Arcade. Microsoft also revealed details of other entertainment offerings enabled through Xbox 360, with availability date and pricing provided for the Xbox 360 HD DVD player in Japan, as well as news of an update that will allow the Xbox 360 console to output full 1080p games and video.

At the best-attended gaming convention in the world, Microsoft showcased games that will boost the Xbox 360 software library in Japan to nearly 110 titles by holiday season 2006 as well as more titles coming well into 2007. The Xbox 360 games showcased include "Blue Dragon" (Microsoft Game Studios), "Lost Planet: Extreme Condition" (Capcom), "Dead or Alive: Xtreme 2" (Tecmo Inc.) and the newly announced "Trusty Bell" (NAMCO BANDAI Games), and a host of anticipated Xbox Live Arcade titles. For 2007, Microsoft also announced a pipeline of great games that include the epic role-playing game (RPG) "Infinite Undiscovery" (Microsoft Game Studios).

"The key to winning the hearts and minds of the Japanese market is great games, and this great lineup demonstrates that Xbox 360 has those games in spades," said Peter Moore, corporate vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. "Our lineup of role-playing games from the acknowledged masters of the genre is proof positive that there has never been a better time for Japanese gamers to jump in and pick up an Xbox 360 system."

Many game titles, including the much-anticipated epic RPG "Blue Dragon," will be playable for the first time in the Microsoft booth at the Tokyo Game Show. Other playable titles include "Lost Odyssey " (Microsoft Game Studios) and "Viva Pi ata " (Microsoft Game Studios).

Xbox Live Arcade and the "Pac-Man" World Championship
The creator of "Pac-Man," Toru Iwatani, announced onstage with Moore that Microsoft and NAMCO BANDAI will host the first "Pac-Man" World Championship in early 2007. The top 10 players in the world for "Pac-Man" on Xbox Live Arcade will compete for the title in New York City. More details, including how to qualify for the championship, will be made available in the coming months.

Continuing its tremendous momentum, Xbox Live Arcade has also announced in Tokyo a host of exciting new games, including some that will be exclusive to the Japanese market. Gamers will have the opportunity to try a host of new games on the show floor, including the classic side-scroller "Contra" (Konami Corp.), the space-shooter "Gyruss" (Konami), the enemy-popping classic "Dig Dug" (NAMCO BANDAI Games), arcade favorite "Track & Field" (Konami), "New Rally-X" (NAMCO BANDAI Games) "Rush'n Attack" (Konami), a favorite 1980s side-scroller, and the inimitable "Ms. Pac-Man" (NAMCO BANDAI). In addition, the Japan-exclusive Xbox Live Arcade game "Yie Ar Kung Fu" (Konami), one of the very first fighting games, was announced for release in 2007.

Xbox 360 HD DVD Player and 1080p Support
Microsoft announced pricing and availability details for the Xbox 360 HD DVD Player in Japan. The accessory will launch on Nov. 17, 2006, priced at 19,800 (estimated retail price), and will come with an Xbox 360 Universal Media Remote.

"Xbox 360 and the HD DVD Player together deliver the most powerful and affordable games and movie system for Japanese consumers," Moore said. "The freedom to choose their entertainment experiences is extremely important for consumers as they enter the next generation."

In addition, Microsoft announced that its fall software update, scheduled for release later this year, will allow all Xbox 360 consoles around the world to output game and movie content in 1080p resolution.

XNA
Demonstrating its pledge to democratize game development for tomorrow's game developers, Microsoft announced that four Japanese universities will use its XNA Game Studio Express software in educational material and research within their course offerings. The XNA software allows hobbyists, students and independent game developers to create games for Windows and, for the first time, Xbox 360 with the goal that user-generated games made with XNA will arrive on Xbox Live Marketplace. Tokyo University, Tokyo Polytechnic University, Ritsumeikan University and Osaka Electro-Communication University join the dozens of universities worldwide that have pledged support for Microsoft's XNA vision and are recognizing the potential of XNA Game Studio Express as an educational tool. As a result, these four schools will integrate XNA software into their game development curricula, labs and games-related research.

"As I turn my attention and passion toward teaching the next generation of game developers, I am thrilled with XNA Game Studio Express and related products," said Toru Iwatani, a lecturer at Tokyo Polytechnic University and original creator of "Pac-Man." "I believe that these products are attractive and effective because they create a development environment that matches the skill level and area of expertise, widening the entry of future developers into game development."

XNA Game Studio Express beta was made available to users worldwide on Aug. 30, 2006. The final version of XNA Game Studio Express will be made available this holiday season.

Talking to Next Generation about Halo 3 at DICE, Microsoft Game Studios general manager Shane Kim didn't yield much in the way of confirmation: "I call it The Mythical Halo 3 - we haven't announced any such game yet! Obviously the Halo franchise is very important to us. When you have Bill Gates being quoted fairly constantly, talking about a game, you know it's important to the company. But his recent comments reflect the position accurately. Which is that, if there were a Halo 3 we would be careful about how we announce and introduce it." When asked if that meant that Halo 3 was coming out this year, Shane Kim gets even more confusing: "It depends. If it's the game that everyone is expecting then, yes. For us it's about making a proper impact on the platform. It has to be something with huge significance, so we won't be rushed." Maybe Kim means information about the game will come out this year, but given Bungie's tendency to take their time, the smart money is on Halo 3 after 2006.

Kim Talks Halo 3 and Second Wave [Next Generation]