Talking at a Microsoft-hosted breakfast at GDC, Microsoft executives Shane Kim and Chris Satchell answered questions from collected journalists and bloggers, touching on all aspects of Microsoft's current Xbox 360 strategy.
The conversation ranged over a multitude of subjects, starting with Kim's comment on some of the hardware failure problems with the console since launch. He noted: "It's unfortunate that people have had problems with their Xbox 360... we've got room for improvement on both sides of the equation - it's a top priority for us."
But the biggest news dealt with episodic gaming, since Kim confirmed that Microsoft and Bungie Studios are currently planning two different episodic gaming series for Xbox 360 with Lord Of The Rings director Peter Jackson, commenting: "Our deal with Peter is not about a film guy who wants to make video games".
He also revealed of the Jackson/Bungie collaboration: "We're in the design phase now", continuing: "The first series will be set in the Halo universe." In addition to this deal, Jackson continues to executive produce the currently on hiatus Halo feature film.
The game collaboration was first announced at the Microsoft X06 event, when the first was explained to be "a collaborative effort with Bungie Studios to co-create a completely new and original chapter in the Halo franchise." However, this is the first time that the series has been confirmed to be in episodic, apparently downloadable form.