DMR said it reached an agreement with Microsoft’s Xbox to launch six of DMR’s over-the-top channels as VOD apps on Xbox One and Xbox Series X/S consoles.

The six channels are Cinehouse, Retrocrush, AsianCrush, Cororo, KMTV and Midnight Pulp.

The Xbox launch continues distribution momentum for DMR, whose channels recently have also been added on platforms including Peacock, LG Channels, Vizio SmartCast, Redbox, and The Roku Channel.

“DMR’s new agreement with Microsoft is an exciting new benchmark for our company. Our six channels are joining a very select group of entertainment apps on the service which includes Netflix, Disney Plus, Apple TV, YouTube and Hulu,” said DMR CEO David Chu. “This marks our first launch on one of the leading global gaming platforms and Xbox has been the most requested outlet for these channels by our loyal fan base”

Each of the DMR channels are available on Xbox for free with advertising, or as an ad-free premium channel for as low as a $4.99/month per channel subscription. 

The DMR channels have picked up distribution on other platforms. 

RetroCrush launched its free linear channel in the U.S. on Peacock, LG Channels, Vizio SmartCast and Redbox. Also a RetroCrush-branded programming block is launching on Pluto TV.

Midnight Pulp launched a free linear channel on Vizio Smartcast and a VOD app on Vizio Smart TVs.

Cocoro also launched a free linear channel on Vizio SmartCast and KMTV launched its VOD app on Vizio Smart TVs.

DMR also launched Retrocrush, Midnight Pulp and AsianCrush channels in Canada on The Roku Channel.

This year DMR launched a dedicated social video division that is approaching a reach of 20 million across YouTube and Facebook alone, and continued to distribute anime and other titles from its vast library to its streaming platform partners. ■

Despite the introduction of console upgrades last year to the two biggest video game platforms, Sony PlayStation and Microsoft Xbox, the use of consoles to stream video dropped 14% globally in the second quarter, according to data recently published by Conviva. 

The decline comes amid huge usage increases for smart TVs, which saw their viewing time shoot up 46% over the same period. 

"For years, all devices have recorded global increases in viewing time," the latest Conviva State of Streaming report said, perhaps lending credence to the notion that the data indicates a sea change in how consumers stream video worldwide. 

Notably, the No. 1 manufacturer of smart TVs globally, South Korea's Samsung, is seeing growth in global viewing market share, according to the same report. 

Samsung's smart TV OS, branded "Tizen" in North America, captured 12% of global streaming time in the second quarter, vs. just 10% in the second quarter of 2020. 

Xbox, meanwhile, saw its share decline to 5% from 7%, while PlayStation's share was 6% vs. 7% in the year-ago period. 

Other smart TV makers saw their streaming shares increase, too, including LG and Vizio, while the top two connected TV platforms, Roku and Amazon Fire TV, experienced narrow declines. 

Android TV remains a niche platform, meanwhile, controlling just 5% of global streaming time. 

MoffettNathanson initiated coverage of the video gaming sector Thursday, adding that sub-par broadband speeds in a large chunk of the country could affect growth at some of the biggest game makers. 

In a 104-page report, MoffettNathanson research analyst Clay Griffin issued “buy” ratings on top game makers Activision Blizzard and Take-Two Interactive and slapped a “neutral” rating on Electronic Arts. He outlined three “mega-trends” in the industry, two of which have at least some ties to the cable broadband business, with increased digitization of game distribution being the largest.

Griffin wrote that the movement from packaged games sold in stores to titles that can be directly downloaded to PCs has been going on for years, but that digital distribution of console games only recently passed 50% of total unit sales. While Griffin noted that Electronic Arts finished the last fiscal year with a 62% digital full game mix and Take-Two and Activision reported even higher percentages, he doesn’t see the total elimination of video game stores just yet. One of the reasons for that is the lack of availability of ultra-high broadband speeds throughout the country. 

“The convenience argument — ‘avoid the store, just click to buy’ — is diluted by the fact that modern games are huge files,” Griffin wrote. “Activision’s Call of Duty: Black Ops Cold War weighed in at 136 GB on XBox Series X/S. Broadband speeds have improved, but according to the FCC, about ⅓ of the country doesn’t yet have a connection capable of 100 Mbps.”

Griffin added that even at 100 Mbps, Call of Duty: Black Ops Cold War would take three hours to download.

President Joseph Biden has proposed spending about $100 billion for broadband deployment as part of his American Jobs Plan infrastructure package that would help close that digital divide. While the government’s definition of sufficient high-speed internet has been in the 25 Megabit per second range in the past, some Democrats have pushed for that minimum to be raised to 100 Mbps. 

Cable operators have noticed an uptick in take rates for higher speed broadband tiers during the pandemic, and many expect that trend to continue. Broadband speed has been a priority for cable operators for years — Comcast has increased the average speeds of its broadband service every year for the past 20 years, Comcast Cable CEO Dave Watson said during the company’s Q1 earnings call.  Charter Communications said during its Q1 earnings call that most of its broadband customers opt for its entry-level 200 Mbps package. 

About a week ago (June 17), the National Telecommunications and Information Administration (NTIS) released an interactive map that shows key areas of broadband need across the country using data from public and private sources. According to that map, there are large pockets of the U.S. that have average broadband speeds of 25 Mbps or less. 

Though game developers have made it possible to start and play games without finishing the download and broadband speeds are expected to improve, game files will likely get bigger, too.  Data caps that limit downloads to 1 Terabyte per month seem huge on the surface, but could become another barrier, “especially as video streaming steadily replaces cable/satellite,” Griffin wrote.

Among gamers, that transition is already happening. 

Griffin cited a Deloitte study that showed 26% of Generation Z (those born between 1997 and 2015) and 16% of Millennials (those born between 1981 and 1996) cited playing video games as their favorite entertainment activity. Watching TV shows or movies at home placed last for Generation Z (10%) and a close second for Millennials (18%, compared to 14% that picked listening to music). In comparison, 39% of Boomers (those born between 1946 and 1964) picked watching TV shows and movies at home as their favorite entertainment activity, with only 3% selecting video games.

While entertainment choices will likely shift once Generation Z gets older, that isn’t always the case, pointing to the 16% of Millennials who picked gaming as their favorite entertainment activity. 

“Over half of Millennials are now over 30 years old. Old enough where the “chains of habit” are starting to get pretty heavy,” Griffin wrote. “The implications of this are clear. Even if Gen Z were to look more like the Millennials do now a generation forward, Millennials and even Gen Xers, will undoubtedly be more involved with video games than Boomers are today.” 

Griffin referred to Take-Two CEO Strauss Zelnick’s often-quoted remark that “people consume the media they fell in love with when they were 17 for the rest of their lives. We think there’s some credence to that idea.”

Microsoft, which just deployed the next generation of its Xbox gaming console, is looking to virtualize the Xbox platform on smart TVs.

Speaking to The Verge, Phil Spencer, executive VP of gaming for Microsoft, said an Xbox app for smart TVs should become available within the next year. 

Microsoft already has an Xbox app for PCs and mobile devices, which lets users play cloud-based games via the company’s xCloud streaming service. 

In addition to an app, Spencer has also recently mentioned the possibility of Microsoft deploying an Xbox HDMI dongle as a means of making the living-room set a device for cloud-based gaming. 

With the release of its latest Xbox iteration earlier this month, Microsoft is segmenting between serious and casual gamers, delivering the high-horsepower Series X console to the former and the lighter, cheaper Series S to the latter. A gaming app that runs on the limited computer power of smart TVs would probably compete for the Series S market. 

Migration of a significant portion of the casual gaming audience away from consoles would impact the competitive connected-TV market. According to Q3 data compiled by Conviva, gaming consoles account for around 10% of connected TV viewing, with the Xbox and Sony PlayStation consoles somewhat evenly split in terms of consumption. 

Given that many of these console owners are also using their device to stream Netflix, Hulu, Disney Plus and other OTT services, replacing consoles with gaming apps would drive these users to other connected-TV platforms. 

Microsoft, which just deployed the next generation of its Xbox gaming console, is also looking to virtualize the Xbox platform on smart TVs.

Speaking to The Verge, Phil Spencer, executive VP of gaming for Microsoft, said an Xbox app for smart TVs should become available within the next year. 

“I don’t think anything is going to stop us from doing that," Spencer said.

Also read: Sony and Microsoft Launch the Future of Gaming Consoles This Week

Microsoft already has an Xbox app for PCs and mobile devices, which lets users play cloud-based games via the company’s XCloud streaming service. Microsoft would be simply extending xCloud to another device category. 

But Microsoft might not use an app to do this with smart TVs. Spencer has also recently mentioned the possibility of Microsoft deploying an Xbox HDMI dongle as a means of making the living-room set a device for cloud-based gaming. 

With the release of its latest Xbox iteration earlier this month, Microsoft is segmenting between serious and casual gamers, delivering the high horsepower Series X version for the former, and the lighter, cheaper Series S to the latter. A gaming app that runs on the limited computer power of smart TVs would probably compete for the Series S market. 

Migration of a significant portion of the casual gaming audience away from consoles would impact the competitive connected TV market. According to Q3 data compiled by research company Conviva, gaming consoles account for around 10% of connected TV viewing time, with the Xbox and Sony PlayStation consoles somewhat evenly split in terms of consumption. 

Given that many of these console owners are also using their device to stream Netflix, Hulu, Disney Plus and other OTT services, replacing consoles with apps would drive these users to other connected TV hardware platforms. 

Vudu, the transactional on-demand streaming service acquired by Comcast’s Fandango unit, will launch on Microsoft’s Xbox Series X and Xbox Series S starting Nov. 10.

Viewers will be able to watch more than a thousands 4K movies and TV shows on Vudu, enhanced by the new Xbox’ enhanced dynamic range, fuller colors, and 3D spatial sound with Dolby Vision and Dolby Atmos.

“At Xbox, our goal is to make the transition from playing games and streaming media on Xbox One to Xbox Series X|S as seamless as possible, so that you’re not missing out on the content you love when you jump into the next generation of gaming, said Xbox wire editor in chief Will Tuttle in a blog post.

“With our new consoles, immerse yourself with fuller colors, enhanced dynamic range,  and spatial sound just as the filmmakers and creators intended on Xbox Series X|S with Dolby Vision and Dolby Atmos, which are supported on apps like Netflix, Disney Plus and Vudu,” Tuttle said. “Together, these advanced audiovisual technologies will take your favorite entertainment to new heights through ultravivid picture quality – incredible brightness, contrast, color, and detail – alongside immersive moving audio that will transport you to new worlds.”

Other streaming apps including Netflix, Disney Plus, HBO Max, Spotify, YouTube, YouTube TV, Amazon Prime Video, Hulu, NBC Peacock, FandangoNow, Twitch, Sky Go, Now TV and Sky Ticket, now available on Xbox One will also be available on the new consoles.

Vudu, acquired from Walmart in July, delivers over 150,000 new release and premium event movies, catalog films and next-day TV shows as soon as they launch on digital, many of which are unavailable on subscription services.

Microsoft set a Nov. 10 launch date for the next generation of its Xbox gaming console, which will debut in two iterations, the full-featured Xbox Series X and the streamlined, budget-minded Xbox Series S.

Preorders start Sept. 22.

Priced at $499, the Xbox Series X is a full-featured gaming console, including high-level gaming computer hardware (an eight-core AMD Zen 2 processor and an RDNA 2-class graphics processor), advanced cooling technology and a 4K Blu-ray player.

“While the Xbox Series X will deliver a massive increase in GPU performance and continue to redefine and advance the state of art in graphics with new capabilities such as hardware-accelerated ray tracing, we don’t believe this generation will be defined by graphics or resolution alone,” Jason Ronald, director of product management on Xbox Series X, said in a statement.

“The team knew they needed to build a next-generation console that could run games in 4K at 60 [frames per second] with no compromises for developers,” he added. “They also challenged themselves to deliver a level of performance once thought impossible on console, including support for up to 120 fps for the most demanding and competitive games.”

The $299 Series S, meanwhile, offers a more compact, affordable solution for more casual gamers without features such as the Blu-ray player. 

Both models are powered by the Xbox Velocity Architecture, which will deliver faster load times and Quick Resume. Both feature HDMI 2.1, frame rates of up to 120 frames per second, DirectX Raytracing and Variable Rate Shading. Series X and S also support Spatial Sound, including Dolby Atmos, and Dolby Vision via streaming media apps like Disney Plus, Vudu and Netflix.

Notably, Microsoft is trying to up the affordability factor for its two consoles by creating a 24-month payment plan that bundles in the Xbox Game Pass Ultimate Service. That bundle is priced at $24.99 a month for 24 months for the Series S and $34.99 for the Series X.

It’s been called a Shark Tank for ganjapreneurs, but The Marijuana Show’s producers, Wendy Robbins and Karen Paull, think of their online reality program as more of a dolphin tank. Budding weed capitalists who come in seeking investments for, say, a car with a body made from cannabis or a seed-to-sale inventory system for marijuana dispensaries always get encouragement and help achieving their dreams.

Starting July 8, Robbins and Paull will see their own efforts pay off with broader over-the-top distribution of the show, on platforms including Amazon Prime, iTunes, Google Play and Xbox. The pair held auditions June 14 in New York for the show’s third season and said going OTT worked for them. “In terms of the [traditional] network model, they pretty much wanted to control the creative and take [us] out,” Paull said. “We want to retain the brand, the marketing, and really the back end is where we make a lot of the money” via relationships with invested companies.

Feedback from meetings, via show developers, included recommendations to change the name, and “they wanted us to make it [dumber],” Robbins said. “You know, like we are goofy people … and it’s so opposite of what we’re trying to bring in, which is a financial, educated, medicinal show.”

Half-hour episodes from season 2 will be available on the new OTT platforms first, and the producers said they have pitched outlets including Hulu, DirecTV and Netflix as well.

To find out where auditions will be held this summer — including in Portland, Ore.; Seattle; and San Diego — and to see a sample of the program, go to themarijuanashow.com.

Microsoft used its E3 presser to trot out the Xbox One S, a slimmer version of the popular console that will ship this August, start at $299, and support 4K resolution and High Dynamic Range (HDR).

According to Microsoft, the newly designed “robot white” console is 40% smaller than the original Xbox One that owes its svelteness in part to a built-in power supply. Microsoft also removed the dedicated Kinect port from the back of the new console – the Xbox One S will be compatible with Kinect using a new adapter, which connects via USB. Microsoft said it will offer a free Kinect adapter to consumers who own a Kinect for the original Xbox One and plan to purchase the Xbox One S.

The new console will also support Blu-ray discs and streaming in 4K/Ultra HD thanks to apps from partners such as Netflix and Amazon Video. Gears of War 4 and Scalebound will be among the titles that will support HDR.

The Xbox One S also comes with a new Xbox Wireless Controller with a “textured grip,”  improved signal range, and integrated Bluetooth. The new Xbox Wireless Controller is included with all Xbox One S consoles and will be available worldwide for purchase for $59.99.

Microsoft said all Xbox One games, accessories and Xbox Live services will work with the new Xbox One S, which will offer storage option of 500GB ($299), 1TB ($349) and a “special launch edition” 2TB version ($399) that will be available in “select markets” in early August. 

Last week, Sony confirmed that it is developing a “high-end” version of the PlayStation 4 that will support games and video in 4K resolution.  Sony, however, is not debuting that device, codenamed “Neo,” at this week’s E3 show.

Microsoft also announced Xbox Play Anywhere, a program that lets users buy gaming titles digitally that can be played on Xbox One consoles and Windows 10 PCs. Gears of War 4 is one of the first games that will support the program.

Gaming consoles remained the top CE device used to access online video content as of the first quarter of 2015, followed by smart TVs, streaming media players, connected DVRs and Blu-ray players, Parks Associates found in a new study.

But keep an eye out for a potential shift in the months and years ahead. The research firm said about  21% of U.S. broadband homes with at least one Internet-connected CE device use streaming media players as the “primary” platform for online video, up from 12% a year ago.

Of the platforms, Roku, which just launched a 4K-capable model, is now the third-most commonly used connected CE device for video streaming (10%), behind Microsoft’s Xbox (14%) and Sony’s PlayStation consoles (13%), Parks Associates said, noting that usage declined for both connected gaming consoles and DVRs, paired with a modest increase for smart TVs (see chart).

“Streaming media players continue to stake out a growing portion of the connected home,” said Barbara Kraus, director of research at Parks Associates, in a statement about the report -- The Streaming Media Device Landscape. “It is a rapid ascendance for streaming media players, and Roku in particular, especially considering the broad base of gaming console ownership compared to the lower penetration of streaming media devices.”

The report also found that two-thirds of U.S. broadband households connect at least one device to the Internet. About 20% of those homes own at least one streaming media “cube” player and 8% own at least one streaming stick. 

Two recent video distribution announcements about Sony's PlayStation and Microsoft's XBOX One show that the video game console makers are determined to play in the video streaming game.

Yet according to a couple of recent media reports, gaming consoles may already be losing the battle to other media devices when it comes to offering streaming video content to consumers.

Sony last week announced it has expanded its rollout of its Playstation Vue streaming television service to all PS3 and PS4 game console owners in Dallas-Ft. Worth and Miami-Fort Lauderdale areas. The two cities join Chicago, Philadelphia, Los Angeles, New York City and San Francisco in offering the nearly 90-channel service, which PS4 owners can buy through a number of price-based tiers.

Sony’s move came on the heels of Microsoft’s pronouncement that it will provide a subscription-free DVR component for its XBOX One consoles to allow users to record broadcast TV shows starting in 2016.

The two announcements are the latest attempts for the video game console category to establish itself as a main player in the home entertainment marketplace through the distribution of video content.

But media analysis company nScreenMedia, found that less expensive video streaming devices such as Roku, Amazon Fire Tv and Chromecast are luring casual gaming fans away from the gaming consoles to access online video content like Netflix and Hulu.

The report, quoting recent Adobe Digital Video numbers, says that Apple TV and Roku have grown their share of TV Everywhere viewing from fourth quarter 2014 to first quarter 2015, while game consoles like PS3, XBOX One, Wii and others have remained stagnated during the period.  

Also, the percentage of consumers with video game consoles in their households has declined from first quarter 2014 to first quarter 2015, according to a recent Nielsen Total Audience Report. 46% of households have a video game console compared to 47% during the same period in 2014.

Video game consoles have declined in Hispanic (54% in 2015 compared to 56%) and Asian American (51% to 54%) households, while Black households have remained steady year to year at 47%, according to Nielsen.

One silver lining for the category is that consumers who have gaming consoles are increasingly using them to play games and access video content. Gaming console usage increased to 9 hours and 15 minutes during first quarter 2015 compared to 8 hours and 42 minutes during the same period last year according to Nielsen’s Total Audience Report.

Given the competition from various media devices streaming live and on demand video content, video game consoles may have to play harder to win the hearts and dollars of consumers. 

ABC News has launched on the Xbox One, becoming the first U.S. news app to take residence on the gaming console.

The launch is tied to ABC’s coverage of the 87th Academy Awards that will air live on Sunday night. During Oscars weekend, the app will feature clips as well as live streams from ABC’s coverage leading up to the main event, including interviews with nominees and segments on Oscars fashion, trends and history.

Launch partners include ABC’s owned TV stations and fellow Disney-backed companies Marvel Entertainment and Fusion.

Users can access up to five simultaneous live streams, including the ABC News 24/7 digital channel. The interface will be refreshed for morning, evening and weekend editions, which will feature specific content tailored to each daypart.

Read more at B&C. 

Verizon Communications said it has unleashed an updated version of its FiOS TV app for the Xbox 360 and Xbox One that adds 14 live channels to the mix while also enabling access without requiring users to subscribe to Xbox Live Gold. 

Users who tap in will still need to log in with their FiOS TV credentials to unlock the app’s menu of live TV channels.

With the update, the following channels have been added to the live TV lineup: AMC HD, AXS TV, beIN Sport, beIN Sport Espanol, Bloomberg TV,Cine Sony, Cooking Channel, Encore, Showtime, Showtime Extreme, Sony Movie Channel, Starz, Trinity Broadcast, and Universal Sport. With those factored in, the console app now offers 88 live TV channels, Verizon said.

In May, Microsoft announced that it would no longer require users to subscribe to the now more gaming-focused Xbox Live Gold service, which runs $60 per year, for most of the entertainment apps delivered via its gaming platform, including Twitch, VUDU, HBO GO, Netflix, Amazon Instant Video, Hulu Plus, Crackle and FOX NOW, among many others.

For those who stick with a Gold subscription, Microsoft is expanding the titles offered through its Games with Gold program, while also offering exclusive discounts to several titles.

Here's the live TV lineup that Verizon currently offers via the FiOS TV app for Xbox:

1. A&E
2. ABC Family
3. American Heros
4. Animal Planet
5. BBC America
6. BBC Word News
7. BET
8. Boomerang
9. Bravo
10. CARTOON Network
11. Centric
12. Cinemax
13. CMT
14. CNBC
15. CNN
16. Comedy Central
17. Discovery
18. Disney
19. Disney Jr.
20. Disney XD
21. DIY
22. E!
23. Epix
24. ESPNews
25. Esquire TV
26. Food Network
27. Fox Business
28. Fox News
29. FX
30. Galavision
31. H2
32. Hallmark
33. HBO
34. HBO2
35. Headline News
36. HGTV
37. History
38. IFC
39. Investigative Discovery
40. Lifetime
41. Lifetime Movie
42. Military History
43. MSNBC
44. MTV
45. MTV@
46. MTVJams
47. Nat Geo Wild
48. Nat Geographic
49. Nickelodeon
50. Nick Jr.
51. NickToons
52. Oprah Network
53. OXYGEN
54. Science
55. SPIKE
56. Sprout
57. Syfy
58. TBS
59. TCM
60. TeenNick
61. Tennis
62. TheHub
63. TLC
64. TNT
65. Travel
66. Tr3s
67. TruTV
68. TVGuide Network
69. TV ONE
70. TVLAND
71. USA
72. VH1
73. VH1SOUL
74. WE TV
75. AMC HD
76. AXS TV
77. beIN Sport
78. beIN Sport Espanol
79. Bloomberg TV
80. Cine Sony
81. Cooking Channel
82. Encore
83. Showtime
84. Showtime Extreme
85. Sony Movie Channel
86. Starz
87. Trinity Broadcast
88. Universal Sport

As part of a plan to lay off 18,000 employees, Microsoft has confirmed that it is shutting down Xbox Entertainment Studios, the company;s ambitious effort to create original content for its gaming consoles, and that it is refocusing its strategies for its Xbox gaming consoles.

“As part of the planned reduction to our overall workforce announced today and in light of the Xbox vision to focus more on games and gamers, we plan to streamline a handful of portfolio and engineering development efforts across Xbox,” a Microsoft spokesperson noted in an email confirming that the company planned to shut down Xbox Entertainment Studios.

The spokesperson also explained that “Nancy Tellem, Jordan Levin and some of the XES team will stay on and remain committed to original programming already in production like the upcoming documentary series ‘Signal to Noise’ whose first installment takes on the rise and fall of gaming icon Atari and of course, the upcoming game franchise series ‘Halo: Nightfall,’ and the ‘Halo' Television Series which will continue as planned with 343 Industries.”

In addition, Xbox will continue to support and deliver interactive sports content like "NFL on Xbox."

The app partnerships for TV, entertainment, sports and entertainment content will also not be impacted “in any way and remain an important component of our Xbox strategy,” the company explained.

- Based on reporting by Jeff Baumgartner at Multichannel News.

Microsoft plans to cut up to 18,000 jobs in the next year, with most of those reductions tied to the company’s recently acquired Nokia unit.

The coming cuts, representing about 14% of Microsoft’s employee base, would mark the largest layoff in its history. Microsoft said the cuts are necessary to fulfill its plan to “become more agile and move faster.”

“Our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment,” new Microsoft CEO Satya Nadella told employees in a message posted Thursday.

He said the decision will affect about 12,500 jobs in Microsoft’s Nokia Devices and Services unit. On the product end, Microsoft plans to shift “select” Nokia X product designs to become Lumia products running Windows. Today’s Nokia X products, which represent the lower end of the company’s handset lineup, run a version of Android.

“We will be particularly focused on making the market for Windows Phone,” Stephen Elop, Microsoft’s EVP of devices and services, and the former CEO of Nokia, said in an email to employees, also sent Thursday. “In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia. In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products.”

Microsoft closed its acquisition of Nokia in April.

Microsoft did not initially spell out how the coming layoffs might affect Microsoft’s Xbox business. In a separate letter sent to employees on July 10, Nadella talked about Microsoft’s commitment to a “mobile-first world,” but also said that Microsoft “will continue to vigorously innovate and delight gamers with Xbox.”

Speaking at the Code conference in May, Nadella said he had no plans to sell off the Xbox business. However, Variety reported Thursday that Microsoft is reconsidering its strategy of developing original series for the Xbox platform. Re/code followed with a report that Microsoft plans to shut down its Xbox Entertainment Studios division, though projects already in production will continue as will the company's plans to create a series about the company's popular Halo gaming franchise.

Update: Microsoft confirmed that it will shut down the division, adding that its app partnerships for TV, entertainment, sports and entertainment content will also not be impacted “in any way and remain an important component of our Xbox strategy.”

Microsoft, Nadella said, is already making plans to cut the first 13,000 positions over the next six months. He will “share further specifics on where we are focusing our innovation investments” on July 22, when Microsoft reports earnings.

Microsoft said the plan will be “substantially complete” by the end of 2014, and fully completed by June 30, 2015. It expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.

HBO is looking to keep the Game Of Thrones momentum going by offering all Xbox users the chance to watch the first episode from season four from April 8 through April 15.

HBO is offering this free sample of the episode to both HBO and non-HBO subscribers during this period on the Xbox 360 and new Xbox One console. The premium programmer is also opening up access to the episode via online video portals and VOD services from “multiple” U.S. MVPDs during the sampling period , HBO said.

In addition to setting a piracy record, Sunday night’s season four premiere generated a Nielsen overnight rating of 6.6 million viewers for the 9 p.m. showing, a 52% boost from the season three premiere and a 23% rise compared to the season three finale.