"What Home to me feels like is Second Life for hardcore gamers," he said, "it doesn’t feel like it broadens the experience and invites people in. When they unveiled it, it seemed innovative. I think what's happened is now here we are a couple of years later and we feel beyond that.

"It feels like 2005 tech in 2008. I'm not sure that’s what people want."

"I think we have seen people are willing to pay for the premium experience," he said. "When they compare Live, even to Home, there is still a huge gap."