Shane Kim knows (and he know we know) that Microsoft has had some problems in the MMO department, and he even takes the full blame, saying "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." Listen, Kim (can we call you Kim?) we can sympathize. Lord knows we burned through enough cash on our ill-fated lifeguard MMO Endless Deep End. And though we can't help you crack the whole code, we can offer an important first step to MMO success: Release one.

We know, it's a small thing, but you'd be surprised how many miss this important step. Though we're giving him a hard time, we're betting NCsoft wishes they'd had a Shane Kim on staff when Auto Assault was being workshopped. "Everyone please leave the room," he'd say, as he loaded his syringe and slipped on rubber gloves, Auto Assault huddling in the corner. "And for the love of God, whatever you hear, do not come in."

Want to get a better look at the so-called "New Xbox Experience"? Microsoft shared a couple screens with us showing off the new UI, including a look at the home screen (above), Avatars, your games, the Marketplace (sorta), and Netflix. Dig in!

Immediately following this morning's press conference, we got a chance to sit down with Xbox VP of Strategy and Business Development, Shane Kim, to pick his brain about the new Dashboard (called the "New Xbox Experience") and its various components, like the Netflix integration, Avatars, Party support, Primetime, and more.

Netflix

• You must be an Xbox Live Gold subscriber as well as a Netflix subscriber to use the new Netflix service
• Similarly, anyone you share your movie with would also need to be an XBL and Netflix subscriber
• Like Netflix's current streaming service, all content will be SD only for now. They could offer HD streams as soon as Netflix is ready to deliver

Avatars

• They're not looking to create a "Home-like" environment for your Avatars – that doesn't mean a third-party wouldn't be able to do that, however
• You'll be able to keep your gamertag pics if you so choose, though they're encouraging everyone to transition to Avatars
• Games can reward you with items for your Avatar (chainsaw, please!)
• There will be no increase in the 100-friend cap on Xbox Live this Fall
• There will not be any Group (think Facebook) or Clan support in this update – they're hoping the "Party" system will satisfy those requests (spoiler: it won't)

Following yesterday's game of musical executive chairs inside Microsoft's Interactive Entertainment Business – wherein Shane Kim ordered a brand new chair for his newly created office of corporate vice president of Strategy and Business Development, while Phil Spencer adopted Kim's old chair as the new general manager of Microsoft Game Studios – Next-Gen spoke with the two execs about their new roles. Unsurprisingly, Kim is the focus of the interview, and he offered a handful of forward-facing statements, fitting with his new strategic role.

When asked if MGS could publish another title as popular as Halo 3, Kim says the chances are "really good" explaining, "We've got the talent, we've got people who are always on the lookout for new ideas and talent, and most importantly we have the commitment and the will to create those hits." Even more telling, Kim puts that new title to use, addressing the strategy of appealing to a new mainstream market: "For us, our opportunity is much like the industry's opportunity: How do we make what we do mass market? How do we make it a mainstream form of entertainment?" Sounds like Kim was bumped upstairs to help Xbox get some of that Wii money, no?

Changes are afoot within Microsoft's Interactive Entertainment Business, with Microsoft Games Studios lead, Shane Kim, being promoted to the newly created role of "corporate vice president of Strategy and Business Development." According to Microsoft's press release, such a grand title is furnished on someone who will "explore new growth opportunities" and look after "future external relationships and partnerships." We imagine Mr. Kim's new role will also provide some sort of assistant trained to tell him as soon as a new Resident Evil game is announced.

Taking over Kim's role will be Phil Spencer, former general manager of Microsoft Games Studios Europe. Spencer will foster new franchises that "aim to attract new audiences" and keep an eye on all that "Gears of War" and "Fable" stuff the kids are so into these days.

Both fellows will report directly to senior vice president of Microsoft Interactive Entertainment Business, Don Mattrick. Also announced in the same press release: Jeff "Jeff Bell" Bell is bailin'.

When Project Gotham Racing dev Bizarre Creations was scooped up by Activision last year, many 360 owners were left wondering what would become of the system's flagship racing franchise. Speaking to Kikizo, Microsoft Game Studios VP Shane Kim provided one possible (and likely) scenario: put Forza Motorsports 2 team Turn 10 behind the wheel.

Kim says that MS is eager for Turn 10 to branch out and "do more creative execution in the racing space." (Read: more than just hardcore racing sims.) Kim expressed a desire to take "a fresh creative approach" to a fifth game in the series, and, to that end, proposed imagining "a future where [Turn 10] would develop a new version of Project Gotham Racing." We humbly suggest that – should they get the gig – Turn 10 replace Kudos with actual MS points.

Microsoft's Shane Kim now sees the end to the console war as a new magic number: first system to 100 million units sold wins, he tells Wired. That's an increase of 90 million over the 10 million mark Microsoft used to promote as the bellwether of victory. Kim believes consumers are still deciding what system to choose and that this console generation is different from the others. (Yeah, it's the first time Microsoft actually has a chance.)

Kim explains that Sony won the last couple generations, but Nintendo is clearly in first place this time around; however, he wonders if Nintendo can keep that momentum going up to 100 million (at Nintendo's rate of supply, it could take decades). He even questions it there'll be a clear-cut winner this generation. Finally, Kim assures that the Microsoft hardware guys are still working on reducing the cost of Xbox 360, in order to hit that "mass market" price point.

During a dinner on Monday night with Microsoft's Shane Kim and Kudo Tsunoda, we got the chance to quiz the former about Microsoft Game Studios' rationale for abandoning Marvel Universe Online MMO. After years in development, the console-bound MMO died a slow and painful (-ly vague) death. The culprit: Kim tells us, "We don't have a heritage in MMOs."

Of course, previous experience isn't a necessary ingredient in success (fun fact: World of Warcraft is Blizzard's first MMO!) and after rattling off the forces Microsoft could marshal in its pursuit of bringing an MMO to the Xbox – financial resources, first-party console support, a robust online component, a proven developer, a stellar license – Kim agreed. "All those reasons are why we started the project." But MUO still failed to make it to market, recalling Microsoft's many previous attempts to successfully deliver and sustain an MMO: Asheron's Call 2, Mythica, the console-targeted True Fantasy Online, and Vanguard (read more here). At what point will the company give up, consider its lesson learned? "I would never say we're done," Kim said confidently.

So why does Kim think a company with Microsoft's significant resources continues to fail to bring an MMO to market? "It's a hits-driven business ... it's all about quality, all about hits." But he's not ready to give up yet. He says Microsoft has "learned the lesson" that it takes a lot of people to create and serve an MMO (good lesson!) and that he's reminded of how little success its had in the MMO space. In other words: MMO-icrosoft hopefuls shouldn't fret. The corporate behemoth will undoubtedly try again. How many lessons could there possible be left to learn?

In an interview with Eurogamer, Microsoft Game Studios VP Shane Kim says he's "happy" the company never got into the handheld market, explaining the division has plenty on its plate with the Xbox 360 and Xbox Live. He goes pretty deep into the issue, almost shutting down the idea of the Xboy entirely by expressing Microsoft is happy to let Sony and Nintendo fight it out.

Kim believes mobile is more important for MS and Windows Mobile is a really "compelling opportunity" for the company. He explains that it's a way for the company to get into the arena without having to worry about creating more hardware. Microsoft has certainly learned that making good hardware isn't easy and can be hazardous.

Owners of the Xbox 360 HD DVD add-on shouldn't go trading them in for $50 just yet. According to Microsoft Game Studios Corporate Vice President "there is still enjoyment to be had" from that defunct piece of entertainment technology.

As part of a Q&A with GameDaily, Kim talked up the features of the outdated add-on, including a library of over 500 HD DVD movies (and growing not growing) available at clearance prices (because they're being cleared out). The drive also lets you have a movie and a game disc in the system at the same time, meaning you can switch from Halo 3 directly to watching August Rush without having to get up! Finally, the HD DVD drive adds two extra USB ports to your 360, meaning you can charge your DualShock 3s that much more easily! Yes, the HD DVD drive is truly a bargain, even without new content. Get yours today!

In addition to chatting about Alan Wake and the Marvel MMO cancellation, Microsoft Games Studio head Shane Kim revealed to MTV's Stephen Totilo at last week's DICE summit that Rare's Banjo Kazooie 3 is slated for a 2008 release. Said Kim, "I'm super-excited about what they're doing with Banjo' I think Banjo is going to be a big hit for us this holiday."

Kim also noted that Rare may go back to developing M-rated games as well as continue along the family-friendly route we've seen for the past few years. Last we heard, Rare was working on a vision cam-supported collection of party games dubbed The Fast and the Furriest for Xbox Live Arcade. With little to no information on Banjo 3, we're hoping next week's GDC will have more revelations.

Shane Kim has been getting a lot of coverage at this year's DICE summit, and it's not just because he's got a thousand-watt smile that lights up a room. Microsoft has been pretty cagey about 2008 so far, and it seems like, thanks to Kim's hinting, the first details of a schedule for the year are just starting to solidify. If you want to know where your favorite upcoming title stands, look no further than MTV's comprehensive interview with Kim on all of the company's big 08/09 guns.

Besides hearing about how great Fable 2 is going to be (answer: very) we were especially intrigued by Kim's reluctance to pin down Alan Wake as a 2008 title. Also, though we were disappointed by the cancellation of the Marvel MMO, we have to admit we agree with the reasoning: In short, Microsoft noticed the dozens of subscription-based MMO carcasses that littered the road and decided that, perhaps, advancement was unwise. We heartily concur.

Despite the dynamic pairing of good sales and majority acclaim for Crackdown, Shane Kim grew cagey when questioned about the status of a sequel at DICE, during an interview with Game|Life. "I don't really want to talk about that discussion," said Kim when asked to comment on reports that Realtime Worlds would not develop a sequel to last year's successful super-cop sandbox shooter. What Kim did clarify is that Microsoft owns the Crackdown IP and is free to pursue development of a sequel with a new studio. "I think that customers would like to see more in that space," Kim vaguely noted, "So that's an option for us."

In a lengthy and comprehensive Q&A conducted by New York Time's games journo Seth Schiesel with Microsoft Game Studios' veep Shane Kim at the D.I.C.E. Summit in Las Vegas, the two go a couple rounds hitting on everything from big AAA titles like Halo, to ActiBlizzion, to the departure of the Bs (Bungie, Bizarre, BioWare), all the way over to the long-rumored (and so far totally fictitious) Xboy.

Gamasutra was there to detail all the good bits in a lengthy writeup that we'd be doing you a total disservice by trying to condense. Check it: digital downloads, Vista-only PC games, console war winners, third-party sales, mass-market appeal, Grand Theft Auto IV, console lifespan, PS3 growth in Europe ...

... phew. See? Comprehensive.

Last week, Shane Bettenhausen caused an internet uproar, an e-debacle if you will, when he hinted that an anticipated Microsoft first-party title would soon be canceled. The title turned out to be Marvel Universe Online, and while it hasn't been officially canceled, it sounds like production is at a standstill. The second, less sexy part of the rumor: A top Microsoft exec is on the way out. The 1UP team tossed out another hint about the possibly-soon-to-be-departed on this week's episode of the 1UP Yours podcast.

Towards the end of the show while the topic was being discussed, host Garnett Lee asked guest host N'Gai Croal, "Do you watch any Nickelodeon like Something Possible?". If you're not as adept with afternoon TV trivia as we are, allow us to drop some knowledge: He's talking about Kim Possible. And that points squarely at Microsoft Games Studios boss Shane Kim. We have no substantiation for the rumor save for 1UP's own credibility, but that's nothing to sneeze at. We'll keep you posted.