In his role at Microsoft Game Studios, Kim oversaw releases such in the Halo, Age of Empires, Fable, Gears of War and Forza Motorsport franchise for the Xbox 360 and Windows PC platforms. His career at the company spanned some 19 years, with 14 of those working in Microsoft's Interactive Entertainment Business division.

Kim is said to be leaving at the end of the year, according to a report from GameSpot. Curiously, it was rumored that the Microsoft exec was planning on leaving late last year. While we've talked to Shane a number of times, with the exception of his participation in the Great E3 Chain Interview, our favorite story involves his behind-the-curve awareness of Resident Evil 5 for the Xbox 360. Good times...

With Shane leaving, a few rungs on the corporate ladder are now vacated. Phil Spencer will be promoted to Kim's old job as CVP of Microsoft Game Studios. He's currently the general manager of that group.

Dennis Durkin, the Chief Financial Officer of the Interactive Entertainment Business, will become that group's COO.

Microsoft's Spencer promoted, Kim retiring [GameSpot]

Shane Kim has told Fast Company:

There are a lot of complex issues to deal with here, especially if you start talking about day-and-date release with retail availability—which is not something that we're talking about at all, today. And publishers have to do some technical work in order to enable this. There will be decisions that publishers have to make from a business standpoint. But when it comes to us saying we want Games on Demand to enable day-and-date release of new titles, then there's certainly a lot of work we would need to go through. We're not anywhere close to that world today. We have great relationships with the retail channel—they're important partners. We sell a lot of hardware and software through retail channels. We have to be smart about how we approach this business.

That sound half-assed to you? Sounds half-assed to us. Microsoft had better be pricing these games cheaply if we're going to have to wait for them and forgo the pleasure of having a nice box on the shelf.

Microsoft's Shane Kim on Project Natal and the Xbox 360 Road Map [Fast Company, via Gamasutra]

In an interview with Kikizo, the Microsoft man opens up a little, saying "For us, it's a matter of focusing on 'when', because if we chased after a mobile or handheld opportunity, we would not have the resources and ability to do things like... Project Natal. So we've chosen to focus on the living room experience from a hardware standpoint, if you will, but we're building a service in Live that will... will extend to other platforms. No question about it."

It's an optimistic, if carefully-worded statement, which sounds to us like it could have a lot more to do with bringing Xbox Live to advanced models of Microsoft's Zune portable media device than crafting a dedicated gaming handheld.

Exclusive: Portable Xbox Gaming a Matter of "When" [Kikizo]

[This post is the fourth in a series that recounts the chain of questions and answers I solicited from the people I interviewed during E3. I asked each of my interviewees to ask a question of the next one. Hence: Chain Interview.]

Shane Kim, Microsoft corporate vice president for long-term strategy in the Xbox 360 group responds: "We're really pleased to have Take Two and EA doing well on our platform with their sports games. So sports as a gaming genre is obviously very important.

"The way I think about sports is in a broader context. Sports is something that hundreds of millions of people are super-passionate about. That's where I think the opportunity is for us to do really interesting things with Xbox 360 and Xbox Live. While you can pick a number from a hat – [there are] six or seven million people who play Madden, there are a 100 million people who watch the NFL during the season. That's a very interesting market. So can we create an experience on our platform for that a football enthusiast or a basketball enthusiast or a baseball enthusiast..."

[At this point Kim got up and directed my attention to an Xbox 360 that was running a demo of a new service which will show Premier League soccer matches in a window surrounded by an audience of Xbox Live avatars. In the margins there was room for trivia and metagame stats based on the number of fans logged in from each team.]

"That's not a soccer game," Kim added, "But that's Premier League live matches being broadcast on Xbox Live surrounded by our social entertainment experience…This is a much better video gaming experience to me than just watching the game."

Impressive, Shane, but did you have a question for your former Microsoft colleague Peter Moore, the head of EA Sports whom I would be interviewing next?

He did.

Shane Kim asks EA Sports chief Peter Moore : "What Microsoft executive do you miss the most from the Xbox group?"

I talked to Moore in one of EA's meeting areas. After our interview, I tested his wit by seeing how he could answer Kim's question.

Peter Moore responds: "Whilst that is like saying, which of my children do I love most, boy, it's got to be Master Chief. It's got to be."

I pointed out that Master Chief is not an executive. Laughing, Moore quickly replied: "He's responsible for more revenue than anybody else I left behind there."

Fair enough. And did he have a question for my next interviewee, his boss and EA CEO John Riccitiello?
He did. Some context: Most of the parking spots at EA's headquarters are not reserved. Moore told me only two are, for electric cars. So…

Peter Moore asks EA CEO John Riccitiello: "How can you live with yourself by deliberately buying an electric car so you can get a reserved parking spot at Electronic Arts?"

Please come back for the answer and the final key links in our Chain Interview.

[This post is the third in a series that recounts the chain of questions and answers I solicited from the people I interviewed during E3. I asked each of my interviewees to ask a question of the next one. Hence: Chain Interview.]

In a hotel room suite on the Wednesday of E3 week, I asked the next chain interview question to Sony's Peter Dille. He had just let me play Gran Turismo on his white PSPGo and answered a batch of questions about Sony's E3 showing. Dille was happy to answer Schappert's question, but admitted to having trouble doing so simply due to a lack of regular use of Xbox Live.

Peter Dille, senior vice president of marketing for Sony Computer Entertainment of America responds: "I don't spend a lot of time on it… Xbox Live has been out for a while and Microsoft's done a really good job getting people involved in online gaming. And that's good news for the industry."

Dille surprised me, and I told him so. I thought he would have made a remark about Microsoft charging for online play, but he didn't take the bait. Instead, he took the opportunity to keep the chain going for my next interview, located on floor below.

Peter Dille asks Sony Computer Entertainment vice president of product development Scott Rohde: "What advantages do you see in developing for PS3 compared to other platforms?"

Armed with that query, I headed over to Rohde's room. We talked about Sony's U.S. studios, whose efforts he oversees. He let me videotape his PSPgo's sliding action. And then I lobbed him the softball.

Scott Rohde responds "What developers have discovered over the past three years — you've heard [Sony Computer Entertainment president] Kaz [Hirai] make reference to this in other interviews — it's kind of the machine that just keeps giving. As you peel off new layers of the onion, you kind of find out more capabilities that the machine can do. When people start taking advantage of the [PS3's seven] SPUs and the Cell [processor] they really find that, \Wow, we can throw more and more tasks and processes at those SPUs and we have all this freedom on the main processor to do more.'"

I pointed out to Rohde that Dille was asking for a comparison to other platform. His answer implied that the same kinds of things couldn't be said about the other major consoles. Fair? "Absolutely," he replied.

My next interview later in the day would be with Microsoft's corporate vice president of strategy and business development for the company's interactive entertainment division. That'd be Shane Kim, former head of first-party game development for the Xbox 360. This would be Sony's chance to turn things back on Microsoft and keep the chain connected. Question, please?

Rohde prefaced his question by noting that I always ask him about sports games, largely because Rohde used to run Sony's San Diego studio which produces the PlayStation's basketball and basebell games.

Scott Rohde asks Shane Kim: "[Stephen] identifies me as a sports guy and, at heart, I am. I would love to know if Microsoft has any thoughts about getting back into first-party sports development."

Shane Kim's answer, and more links in the chain – including the most awkward question of the week – will run here tomorrow.

[Scott Rohde Pic via GameTrailers]

Having long made a name for itself on Sony consoles, the next Metal Gear Solid title - Rising - will also be appearing on the Xbox 360, a move which Microsoft says levels the proverbial playing field. Microsoft VP Shane Kim:

I still think exclusive content is really important. First of all, in games, we've said for a long time that a key part of our strategy with Xbox 360 was a level third-party playing field. Now we've effectively done that with Metal Gear Solid coming to the Xbox 360.

The economics are such that third parties also have to support multiple platforms, and you can't ignore Xbox 360. It's the second leading platform.

Interesting that he so openly states that the 360 is in second place. But not as interesting as the fact that, some days, it feels like the entire world has forgotten about the Xbox version of Metal Gear Solid 2.

Microsoft's Future Begins Now: Shane Kim Speaks [Gamasutra]

Since the original Xbox launched in 2001, Microsoft has worked hard to deflate suspicions that the company wasn't serious about video games.

Microsoft, skeptics assumed, was going to push gaming only as long as necessary to get Xboxes installed under every home TV. And then? The theory was that Microsoft would focus on the alchemy of dominating the set-top box market, with gaming as something less than the primary focus.

Much of that suspicion has been eliminated thanks to the Xbox 360's dominance with the hardcore gaming market and the platform's string of leading games. Microsoft has recently earned the reputation, in fact, of producing the premiere gamer's game machine of this console generation.

But non-gaming aspects of the Xbox 360 are on the rise. Netflix has become a big story for the Xbox 360 since it was integrated into the platform last fall. And this E3 saw announcements of Facebook, Twitter and Last.fm integration into the machine. Microsoft is selling movies and TV shows on the 360 and is in the midst of beta-testing a game show that would network thousands of homes. In the U.K. it will push the 360 as a new portal through which to watch major soccer matches and other Sky TV programming. Even Project Natal, which has been characterized as a next-level game controller was also shown at E3 as a next-level TV remote.

With all that in mind last week, we asked Shane Kim, Microsoft's corporate vice president of interactive entertainment strategy whether the "video game console" term was going to soon become invalid for the Xbox 360.

"The Center Of Home Entertainment," Kim responded, suggesting a more encompassing term. "It happens to be a great video game console. That's not going away."

Kim said the best sign of gaming's continued importance to the Xbox 360 was its lead position during Microsoft's E3 2009 briefing. The show started with games. "We want to make people understand that we're not leaving the gaming space. I definitely think that we can expand off that base, and that gaming is still going to be an important part of entertainment."

Two years ago, while speaking of Microsoft's entry into the console business, Bill Gates told Kotaku that "we wouldn't have done it if it was just a gaming device." He added: ""We wouldn't have gone into the category at all. It was strategically getting into the living room. This is not some big secret, Sony says the same things."

There was a time when comments about the Xbox's expansion beyond gaming would have panicked gamers. But it's worth re-assessing that fear. As Microsoft branches out from supporting a gaming-only home console, those who suggested that would be a bad thing don't seem to be speaking as loudly as before.

Forget the launch of previous gaming cameras and mics like the PlayStation Eye or the Xbox Live Vision Camera when you try to imagine the impact Microsoft's Project Natal will have on billboards, TV channels and other places where ads run.

The birth of Natal will feel grander than that.

"Conceptually, the launch of Natal will be like the launch of Xbox 360," Microsoft's head of long-term Xbox 360 strategy, Shane Kim, told Kotaku during an interview at E3. "It's going to be that big. We're not just going to ship it when the hardware and software are ready. We have to make sure that there are enough content experiences that are really good. That's similar to how you would think of the launch of a new console. It's got to have a great launch line-up. That's the same thing here."

In a note to investors earlier this week, Wedbush Morgan Securities analyst Michael Pachter predicted that the Natal launch would require the support of approximately 30 third-party games.

As for who Microsoft hopes to catch with the Natal net, Kim said, "We're not focused on this generation's casual gamers or even PS2 people who haven't upgraded. This is about the 60% of households were a video game console doesn't exist… the problem is that the controller is a barrier for some people and now with Project Natal we completely eliminate that."

Whether you're a fan of Natal's potential or not, the idea of a console-sized launch for a gaming peripheral is impressive and hints at the potential for the device to find its audience.

If only [insert your favorite gaming peripheral] had that kind of support.

[PIC]

Microsoft's head of long-term planning for Xbox 360, Shane Kim, brushed off Kotaku's suggestion that the numerous expansions to the company's Avatar system might eventually lead the company to creating — or even just finding themselves in — a Home-like shared space.

If Avatars can show up in chat parties together, appear in games, populate a virtual game show like 1 Vs 100 or have different outfits, are they not moving toward that territory of the PS3's virtual world, Home?

Kim said he uses a different metaphor: "I think that Live is an MMO, but that doesn't mean you have to create a virtual world. I think that's the big difference between our approach and Sony's approach. An MMO is a living, breathing, dynamic thing where you can find people online and entertainment you can connect with... I think that metaphor applies to the platform. That's the way we think about it when we try to program new content and experiences into it...

"Who knows, maybe someday personalizing a space might be part of it, but that's not the same as creating a virtual a world that's the main way you interact with other people."

Xbox Live as an MMO? The idea sounds odd at first, but the more we think about it here at Kotaku Tower, the more we see some merit to it.

In the interview, Kim said that while the recent addition of the Netflix streaming service was a major partnership to broadening the 360's capabilities, it's merely "scratching the surface" for what they want to do down the road.

“The work we are doing now is trying to understand what is of interest to the broader set of customers beyond the traditional game audience that would take advantage of the interactive platform we have,” he said.

Kim didn't get into specifics, but suggested some ideas we could see, such as a music service or the ability to chat with your friends while watching sports clips, for example. (um, yay?)

But don't go thinking this means they'll be adding an Internet browser anytime soon.

Kim said there are "no plans" to release a browser, saying they'll likely focus on doing specific partnerships with websites like Youtube and Hulu and find ways to integrate the 360 that way. Their fear is that if they open up the console too much, the consumer's focus might shift away from what they want the most: Gamers plopping down $60+ on a video game.

“We don’t want to become just a carriage provider,” he said. That would tend to commoditize what we do.”

What Xbox Wants to Be When It Grows Up (New York Times)

Sure, Don Mattrick, senior VP of the Interactive Entertainment Business at Microsoft, said the same thing in the Black Friday statement. But we imagined the reality of it all peppered with plenty of "in your face!" finger pointing and corporate chest bumps.

Mr. Kim isn't counting on 2008-style growth for the Xbox 360, adding "Who knows, maybe flat performance will be considered a remarkable achievement." Ugh. How are we going to make engrossing headlines out of "flat performance," Shane?

Microsoft cautiously optimistic about Xbox sales [Reuters]

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]