Steve: The Rare acquisition was a big acquisition. It ranked as one of the top 10 biggest acquisitions at Microsoft and we had to bring it to the board of supervisors for a vote. When we bought Rare we realized their approach would broaden our strategy. We've re-vectored our strategy since the acquisition, but this is part of a strategic bet, and Rare will do more on Xbox 360 than on Xbox. That's for sure. They will be Xbox 360 oriented.

They've worked out well. They're an important part of our start. And we want Rare to get it right, we don't want to rush them. I mean look at Halo when we first showed it. It looked awful. We gave Bungie time, and it worked out. I mean, look at sales of Halo and Halo 2. We want to give Rare the right time to make their games.

Peter: They're great guys, the Stamper brothers. The guys at Rare are geniuses. The two titles they're working on, PDZ and Kameo are deep, thorough, and sophisticated, they're not shallow games. And PDZ is a genre-breaking title.

Steve: How am I feeling about Rare? Our shareholders will be excited when these games are done. No doubt. I'm feeling pretty good right now about Rare. Really good.