Core Values: A Conversation with Major Nelson from Xbox

I often talk about how the Xbox LIVE audience is growing beyond the core of 18-34 year old male gamers. Certainly, the rapid growth of the global Xbox LIVE audience – now 30 million and counting – is broadening and diversifying in its composition, with moms and families being the fastest growing segments. And the phenomenal success of Kinect is sure to continue that trend.

But let’s not forget how we got here. Long before gaming entered the mainstream, it was “the core” audience of 18-34 year old males who built Xbox LIVE into the success it is today. For at least a decade, hardcore gamers have been saying gaming is where it’s at—and the rest of the world has finally caught on. At the same time, much of this audience has transitioned to adulthood, (which is not the same thing as saying they’ve grown up—where’s the fun in that?)

In fact, 71% of them own a residence and 50% have children. Yet the core still loves video games and spends significant time gaming. They play often, enjoy multiple gaming genres, and eagerly await new titles like “Halo: Reach” and “Call of Duty: Black Ops.” Many are as committed to spending time with video games as they are with the content they find on TV, and 84% of them log in to Xbox LIVE at least once a week, with nearly 20% logging in multiple times per day, according to recent Simmons data.

But going beyond the stats, what is the “state of the gamer” today? It’s a topic no one can speak to more insightfully than Major Nelson, our resident Xbox insider and evangelist, who’s deeply immersed in the gaming community. I recently sat down with this inveterate road warrior in between trips and we had a chance to catch up on the changing face of the core.

MK: Xbox LIVE continues to grow with 30 million members. In your view, what’s fueling the growth?

Major Nelson: Xbox LIVE is the center of gravity for gamers. It ties games together across Xbox, mobile and Games for Windows. And people are using it in new ways. Lately we have seen a trend in what we call co-op gaming--it’s now you and I connecting to play together against the game…rather than against each other. A lot of games now have this feature. So we’re working together as a team--this is a different type of gaming. You can do this in “Halo: Reach,” where you go through the storyline with a buddy and work together to win.

MK: Not that long ago, gamers were adamant that advertising in and around game would kill the experience. It doesn’t seem to have turned out that way.

Major Nelson: It only upsets people when it’s done incorrectly. If I’m going through a first person shooter game and see an ad for diapers, that’s a bad experience. Gamers feel that, if you’re going to show me advertising, make it relevant or give me something for free…they feel that if you’re showing them ads, there needs to be something they get in return.

MK: In other words, it’s about value exchange. You know I never shut up about that.

Major Nelson: Exactly. Could you please stop talking about that? (Laughs) But seriously there are advertisers who are doing it right. Like Samsung did, working with “Kinect Sports” to create a free download of additional mini-games. You get something, I get something.

MK: Xbox LIVE is now available on Windows 7 phones, which is pretty cool. Are console gamers ready to go mobile?

Major Nelson: Gamers are ready to take their gamer score and achievements on the go. For the first time they can earn points and track their scores outside of the living room. People are pretty excited about it.

MK: How about the fact that everything is being “gami-fied” ?

Major Nelson: Today there is a philosophical discussion about demographics…what is a gamer today? My 72-year-old mother plays mahjong, so she’s a gamer. Someone who plays a Facebook game is a gamer. Even if they don’t think of themselves that way. I mean hey, life is a game.

MK: And Kinect is broadening the idea of who is a gamer in a big way.

Major Nelson: The core loves the Kinect technology, they think it’s interesting. The kind of games that will get them even more excited about Kinect will come. We’re working with some high-profile developers on some things now, and there’ll be some announcements later this year.

MK: The growth of on-line gaming is nothing short of phenomenal. Do you think it’s the social nature of it that is the key to its success, or the great titles/franchises like “Modern Warfare” that are driving gamers to Xbox LIVE?

Major Nelson: The LIVE platform is one of the most important drivers of this experience. At the end of day, people want great games and content with interactivity—and to connect with friends. I still game with my friends back home, from years ago. Even though we don’t live in the same city, I have essentially grown up with them because we game together over LIVE.

MK: You’ve been at this for awhile now. What’s the best part of your gig?

Major Nelson: Well, I get to connect with the gaming community and give their feedback to the product teams here at Xbox, which is pretty cool. And I get to play games all the time. It doesn’t get any better than that.

Thank you,

Mark Kroese, GM for Advertising in our Entertainment & Devices Division

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