00:01Microsoft is going to make a game console
00:03We weren't sure how we were going to do it
00:05Risk was enormous
00:08Microsoft was this dominant company of the era
00:11But success or even survival was anything but preordained
00:16We started to ship quality games
00:18And at the same time we weren't doing anything in the console space
00:21One day these guys from the DirectX team walked in
00:25We just thought of ourselves
00:26Kind of that Rebels
00:27A weird combination of craziness and genius
00:30We were a renegade team
00:32A lot of our thinking was focused on making the very best games
00:36That really meant something for us
00:40We wanted to make a console designed to be easy and fun to make games on
00:44We were trying to crash meetings and get traction on this thing
00:48We were an annoyance
00:49You're proposing taking money away from Office in order to fund some game system?
00:55Balmer understood where the money came from
00:57Steve looked at the Xbox idea and saw insanity
01:00Wait just one minute before you answer
01:03What's the hard drive going to cost?
01:04What's the Ethernet port going to cost?
01:06There's no way
01:08Everything about making a console is hard
01:11We made this little device
01:12It was held together by chewing gum and pain
01:16And it doesn't turn on
01:17It became clear that there were just some really big challenges for us
01:22The Duke wasn't a small controller
01:24You had to have gorilla hands to work with this thing
01:27It doesn't matter what your technology is
01:29If you don't have the games, we were done
01:31They had this new thing called Halo
01:34Forza was built as an epic racing game
01:37He is what was appealing to a hardcore gamer
01:40We were focused on having all of our games prepped for E3
01:43And you're always just one catastrophic bug away from not making it
01:49What's going on?
01:51The red ring of doubt
01:52Microsoft brand is on the line
01:54Microsoft name's on the line
01:55It's insane to launch a game console
01:57When you're at Microsoft, you make frickin' windows and a spreadsheet
02:00It was chaotic
02:01Chaos
02:02Total chaos
02:03Our goal is to continue to innovate across all platforms
02:06Bridge the gap between traditional and cloud-based games
02:10And then sometimes there's surprises that come out of nowhere
02:14We are no longer in the Microsoft Playbook
