Top Films To Arrive In Xbox 360(TM) Owners' Living Rooms This Christmas

LONDON - 4 December 2007 - Following the huge success of Xbox LIVE™ Marketplace Video Store in the US, where it has changed the way Xbox 360™ owners view and enjoy video, Microsoft® today announced that Xbox LIVE Marketplace Video Store will open for business in the UK on 11th December.

Xbox 360 owners will be able to rent full-length films such as 300, The Good German, Harry Potter and the Philosopher’s Stone, and Teenage Mutant Ninja Turtles from as little as 250 Microsoft Points (*ERP£2) for Standard Definition movies and from 380 Microsoft Points (*ERP£3.20 <1>) for High Definition movies. This is in addition to over 100 music videos currently available to download from partners Ministry of Sound, Sony BMG, PIAS and Vid Zone.

With this launch, Xbox LIVE Marketplace becomes the first video on demand service to be available in six countries– US, Canada, UK, Ireland, France and Germany - and cements its place as the worldwide leader in online distribution of high-definition gaming and entertainment content.

Robin Truchy, Director of Xbox LIVE for Europe, Microsoft Entertainment and Devices Division, commented:“Xbox Live Marketplace Video Store in Europe is all about adding to the ever-expanding number of entertainment choices that our consumers have on their Xbox 360. We want to give them the entertainment they want, in the format they want, when they want it and at an affordable price. We were already offering HD games, HD music videos and the option to enjoy HD-DVD format films, now we are offering HD movies to download and rent as well. This is very exciting for us and the consumer.”

“Providing consumers with more choices and improving the movie experience at home is at the heart of Warner Bros. Digital Distribution’s strategy and we’re delighted to support Xbox Live for the European launch of their Video On Demand service” said Marc Gareton, Warner Bros. Digital Distribution Senior Vice President International.” Microsoft has built a very successful platform, in both Standard Definition and High Definition, and we are happy to make it a home for our movies.”

Arash Amel, Senior Analyst, Head of Broadband Media, Screen Digest, commented:“As Hollywood turns its attention towards selling digital copies of its blockbuster movies, the delivery of movie content over the open internet has become a key battleground for a broad range of service providers. Screen Digest predicts that the total European movie download market will be worth€350m by 2012, up from€17m in 2007<2>. The Xbox LIVE Marketplace Video Store, as the first multi-territory hardware-based online movie delivery service in Europe, is expected to be a European market leader for movie downloads. Consumers in both the US and Europe have already made it abundantly clear that they are reluctant to watch two-hour long films on their PC, instead preferring to view them on personal devices or most preferably devices that can provide a link to their large-screen living room TVs and home entertainment systems.”

Xbox 360 gamers in the launch countries can access Xbox Live Marketplace Video Store with either an Xbox Live Silver or Gold membership and a broadband connection. More information about the content available on Xbox LIVE Marketplace Video Store can be found at: www.xbox.com

Examples of Launch Titles on Xbox LIVE Marketplace Video Store<3>:

UK/Ireland

300

HARRY POTTER AND THE PHILOSOPHER’S STONE

HARRY POTTER AND THE CHAMBER OF SECRETS

ZODIAC

MATRIX, THE

MATRIX REVOLUTIONS, THE

MATRIX RELOADED, THE

OCEAN'S ELEVEN

PERFECT STORM, THE

SWORDFISH

THREE KINGS

TRAINING DAY

FUGITIVE, THE

RISKY BUSINESS

SPACE COWBOYS

EYES WIDE SHUT

ANALYZE THIS

DEMOLITION MAN

ERASER

EXECUTIVE DECISION

LETHAL WEAPON 3

LETHAL WEAPON 4

LOONEY TUNES: BACK IN ACTION

MARS ATTACKS!

CLASH OF THE TITANS

SUPERMAN III

DEAD CALM

-Ends-

For more press information, please contact:

Kate Szlendak / 0118 909 5334 / v-kaszle@microsoft.com

About Microsoft

Founded in 1975, Microsoft (Nasdaq“MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

About Xbox 360

Xbox 360 is the most powerful video game and entertainment system, delivering the best games, the next generation of the premier Xbox Live online gaming network and unique digital entertainment experiences that revolve around gamers. Xbox 360 is expected to have a catalogue of 160 high-definition games by the end of 2006 and to be available in nearly 37 countries by the end of this year. More information can be found online at http://www.xbox.com/xbox360.

About Xbox Live

Xbox Live is the first and only unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox Live connects millions of members across nearly 25 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox Live Arcade, free and premium playable game demos, music videos, and movie trailers, as well as new game levels, characters and vehicles for all their favourite retail games. More information can be found online at http://www.xbox.com/en-us/live

Microsoft, Xbox Live, Xbox 360 and Xbox are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

<1> ERP Estimated Retail Price– prices may vary by individual retailer

<2> Revenue projections come from Screen Digest's Broadband Media Intelligence service, which is compiled from the ground up, from primary research with suppliers in the marketplace, and developed through our industry-leading digital content forecast models. Their core business is tracking the availability and performance of all such services in the marketplace and therefore are aware of all platforms currently available in Europe.

<3> These films may be subject to change


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