on emily chang at the e3 conference in los angeles. over the next hour, we will speak to some of the biggest on then gaming and latest trends and how they are keeping up th them. >> and highlights from apple ceo

tim cook that you don't want to miss. we are in los angeles at the biggest show of the year. the hottest names in gaming are here showcasing theest gaming trends. it has become a cold full phenomenon. he says they willoong for other titles as well. >> what do you think about how fortnight is shaking up the industry. >> it is a great thing to have for the industry. i think there is evidence we are

audience.n a younger that is great for all of us. we have free to play games in china. social pointon of was in addition to free to play atles, we wanted to have broader footprint. could it be a flash in the pan? all.don't think is at they have a lot to be proud of. redeye reduction to come call of duty, battlefield five.

how do you make sure yours the winner? focus is on the quality of our titles. we are feeling really good about red dead redemption. many westerny theme titles in the business. we release of the first it was that westerns cannot work. why are you not showing it at e3? >> our products are widely

-- widelyhrough it marketed. focus over a long time is engagement. give consumers an opportunity not only to fall in love with a product, but to stay in love with it. with monetization. we are conceed about engaging consumers. are little boxes and paid a n tactics healthy? >> i don't believe it is exploited. entertainment is a must-have -- is not a must-have good. we choose to be entertained.

i think the bottom line is do your game mechanics fit in if willdon't come a consumers crack down on it. in certain international markets it could be crackdown. be wrongheaded, but it may. >> last month, the supreme court onuck down a role -- a law gambling and sports grid are you doing things to prepare for

legaling e-sports gambling? >> we are open-minded. it is really a different business that requires regulation. i think we would have to think lo and hard, but it clearly to it >>pportunity there is concern about addiction careers. ruining their should a videogame industry be doing more? isif people need help, it our job to help them. our products are not meant to be 24 hours a day. many things ok in moderation are not ok in excess. seek to soak up

people's free time. video games are a small part compared to say, television. >> do you believe this is the last generation of consoles? >> no. format waso, the pc nonexistent so clearly the market is opening up. , sony are nintendo key. we continue to support them.

vr is a zero billion dollar business. we have put some titles out in the are. we want toe ready for anything that may come along. there are numerous barriers for a virtual-reality videogame experience the least being that you are moving around with a headset on. back to the and uncomfortable or nauseating experience for most people. it is exciting. most people don't consume entertainment and people generally don't like -- settings,ur case the are my work. ar is an exciting technology.

of the like every part landscape, the question is, what you do with it. ar does not requires you wear a headset. you can interact with others. i't see any barriers tt are working. the only question is what do our competitors to and if i were to guess, i think someone would come up with a great execution. >> break to have you back for when farmville was all your friends posted about. if you like mourners, check us out on the radio and on sirius xm. this is bloomberg.

.> women in gaming survey showed 42% in the gaming industry trying to make it more excliv it begins with the facebook page where women in gaming can come together as a community. thank you for joining us. >> what does this actually involved? >> we launched our initiative tos year and our goal is

encourage women in the industry. the workforce,t we think we cachange that. women. to encourage more >> how do you get them there? it is about convincing companies to hire them and women to work. >> o of the wayss we are launching an initiative where we are interviewing women about what it is like today. >> are you running into any existence -- resistance?

chapters focuses on women in gaming. are you feeling any resisnce from the industry? >> ihi what is interesting is stepping forward and wanted to share their story. it is a really exciting industry . a yog woman -- young women can learn a lot. impacto me about the you have been having. what video games would be as violent or so many first-person shooters? -- july >> what is

facebook doing at facebook to put your money where your mouth is? bel investing in the gaming initiative and our overall mission is to bring the theretogether and we feel is value in helping the women's community. also when they join the industry , they can go further. >> they had a complicated relationship with the gaming community. why should people choose facebook over others? mission is what we think about when we think about gaming. for stopping by.

up, the center of the gaming universe. news out our global network at tictoc on twitter.

>> when it comes to the console wars, the top two names are playstation and xbox. microsoft has lost ground in the current cycle, it announced a major push. they are doubling its number of

videogame studios and it showed which weres, 15 of world premieres. come uptell me more microsoft is building again streaming servi. >> i think we a looking at playerice. there for ways people can save. we see people finding games the might not have known about, trying to play games they might -- and iengaged in and

>> sony launch their service for years ago to limit their access. what thinks -- makes you think you can do better or play catch-up? >> we have a service that dials and access toans big e3 that it is a wonderful lineup of games. >> when it comes to software, how do you continue to compete with sony? thet is a wonderful time in game industry. we see teams that have been able to deal with it. i'm excited about all the in the halooing on

team showed off some of the work they have been doing. become sohas profitable or i think it has brought in a whole new class of players. it is a game that young women are engaged in. again, it comes back to player choice. it has a certain w of playing in a certain way of engaging. >> you think it will be a long-term hit or just a moment? >> i wish i had that crystalba. the industry is full of things that have come and gone. >> how do you think it will change your business? take quite ames while to make. while we look at things like

fortnight, the games have to start with an idea and a way to connect with the player. >> people are saying this is the last generation of consoles. would you agree? >> no. we think people love aying room on their living their tv. we know that pc is growing, but we are committed to consult. number -- a number of acquisitions. talk to us about strategy. when he think about what the team is doing, it really starts with a creative core in what we can do.

not make anydoes .oney from it there are talks about a buyout. >> ware fortunate to be part folksrosoft and all the working on windows 10. being part of microsoft is an advantage. >> you have to plan for the future and map out the strategy. when you look at gaming five years from now, what is the same and what is different #>> i will see -- i think we will see advancements in graphics. one of the things is the fast start technology through i think machine learning will play a part.

>> is the future cloud-based? i think it will be a pervasive tech in most games. >> in five years the think people will buy physical games? still see people wanted to buy physical games and we are going to follow where people want to. addiction has been a topic for the gaming industry for a long time. recently, we saw apple making moves under some pressure. is that something the videogame industry should be taking more

seriously? >> we have very sophisticated tools for parents that limit what kinds of games can be played. there's something we can a engage in and we encourage feelts to be involved we really proud about the tools that we provide so that people can make choices about screen time. >> what are you doing at xbox to hire more women, hire more minorities and make sure they are represented in games as well. >> we start with the idea that and oure global developers need to reflect the diversity.

saravanan is the woman who runs our business. we are committed to making sure ourms refct -- >> are you seeing a shift? >> we are. there are almost 2 billion people. it will start to reflect the balance of people on the planet. >> thank you for joining us. crazeing up, the gaming of bending the industry. fortnight is heading to the nintendo switch. on, tim cook talk to bloomberg about the companies from us to making investments in the united states and looking at apple's growth since taking over

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that's why xfinity mobile can be included with xfinity internet which could save you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today. >> mrs. "bloomberg technology." on e3 -- i'm emily chang at the e3. the biggest names in gaming are showing off what they have in store. one company makes a super smash at the event and they are nintendo. the main display during the show was even announced or leaked in the prior weeks and months occluding fortnight, pokemon, and a super smash brothers ultimate. -- fortnite. it went to all their market gains in eight years. joining us now is nintendo of america president. let's talk about stocks.

investors ne to believe there is no more surprises. with a be correct? >> they would not. nintendo loves to surprise people. when we approach e3, we show content from the next six or nine months. we'll is have more surprises. there is always more in store. reacted thenalysts way they did, who knows, but we know from a company perspective, there's a lot more up our sleeves and a lot more we have to show over the weeks and months ahead. for us, we believe there's a lot more value for the consumer to tell them abo content and a launch its we did for fortnight. fortnight -- fortnite. fortnight already has -- fortnite already has 2 million downloads. that is what is most important to us. >> super smash brothers,

new pokemon game. which will move the needle the most? >> we have an opportunity to drive mome. the eon for splits into, mario party watching in october. pokemon launching in november before black friday, and super smash brothers ultimate in december, it is the pacing o news. the pacing of launches that will drive the business forward. >> let's talk about the online service coming in september. based ins it is club the network performance of the game that you have been -- games that you have been trialing, people say it is on label. will that improve -- unplayable. will that improve? >> it well. we are as much learning about the technical infrastructure as the way the game lays.

you have to expe cllenges when you do that. when we watch e game, t is going to perform. just like it did for fornite. >> let's talk about the switch. you have made it cheaper for people to buy a second one, either going to be more incentives? >> those are incentives specifically to the japanese market. so it is not coming to the markets -- to the north american markets. this is a difference in living situations across the world. japanese homes, small, typically one tv in the household so for that market, offering an that takes out hdmi cables and things like that, makes sense. inhe americas, three big tv for household. selling a fully configured switch into the home is what we are focusing on and we are seeing that happen. we are expecting to see that with pokemon let's go pegida. -- pikachu.

that it'sre reports not very attractive. what are you doing there? >> let's focus on americas in the u.s. marketplace. in december on our dedicated handheld business, it's grew by 27% year on year. so far this year, our tw ds and three ds is up this year. the switch is not all on its own. it is getting strong support from handheld business in the americas. for us, we want to continue to drive folks to those platforms. the dedicated business for 2ds for kids and families to get engaged for the first time potentially in videogames of it the nintendo switch will be the game where consumers want to py smash brothers themselves and all of these big, epic games. that is what we're looking to do. >> speaking of epic games, greatte, pokemon, it is these games are free to play and

a success. how are they monitized? buys attire or season passes. as long as there is a strong process -- proper for developers selves. >> would you think about pay to win tactics? >> sloot boxes have gotten a bad rep. the game mechanic of buying something that you're not quite sure what is inside is as old as cards for example. nintendo, aeve, at gameplay mechanic that offers a consumer something to buy that they are not sure what is inside can be interesting as long as that is not the only way that you can get those items. that is where some developers have made some mistakes. for us, it is one of many mechanics that we can use to drive ongoing engagement in the game. >> tell us about the new president and what might change for y. president is a veteran of

25 years with the company. what is great about him is he experienceextensive outside of japan and was one of thfirst financial people that nintendo of america was dealing with back in our early days. he spent 12 years in europe so he has an understanding for the subsidiary overseas. he loves our content, playedur games, so for my perspective, he is a great choice to be our next global president. >> you have told me nintendo will be e-sports in a uniquely nintendo way. what does that mean? for the olympics involved? reggie: potentially, the first time that e-sports will be an olympic srt will be in the tokyo olympics, 2020. that will be an interesting venue. but, look. when we talk about doing e-sports uniquely, like we did at e3, we held a global's splatoon 20--

tournament. we want to enable consumers and professional players to come together and play. we create consistent rules, consistentmm om tre. so far that is working for us. it is building from the ground up these fantasy gaming communities that support our games. >> when it comes to making money, especially from these free to play games, i know you want tommy the revenue breakdown, but how would you describe the relationship between you and publishers. are you making more than half? reggie: the relationship with developers, we are the platform holders so the relationship with the developers, from my it is fair. we have invested to create the platform infrastructure, the profit split is a fair construct and it enables company like epic to drive their profitability's. enables companies like us to enable profitabilities.

>> woolly dude say to those skeptical? reggie: -- what would you say to those skeptical? reggie: when you look at the number of analysts getting it right over the yet is we a compa hold things close to the vest. we love to surprise the community environment and when we do, we surprise big. look at switch, look at some of the other games. i say don't worry, we are driving the business forward, driving engagement on the platform and that is what is important. >> you heard it here. nintendo of america president reggie, thank for stopping by. an interview on bloomberg television, tim cook says the company will inject $315 billion into the ud states economy t ve years. >> we're going to create a new site, in a campus within the united states and a different location than our two current

campuses. where going to hire 20,000 people and we're going to spend $30 billion in cutbacks over the next several years. ander one, we are investing investing a ton in this country. ton, yes, we are also goin buy some of our stock because we value.r stock is a good from a shoulder point of view, if we can buy stock from people that think it is worth less than we do, then that is good for the company. it is good for the economy as we because when people sell stock, they pay taxes on the gains. he also discussed apple' growth since he took over as ceo. >> you have now been the ceo of apple since july 2011.

the earnings are up about 80%. have you ever thought you can't do better than this and maybe you should say i've done a great job and now i will do something else of my life? >> we have used the stock price and revenues and profits as a result of doing things right on the innovation side, on the creativity side, focusing on the right products, treating customers like they are jewels and focusing on the user experience. i don't even though the numbers you just quoted. it is not something that is in my orbit, to honest. >> when you announce your quarterly earnings, analysts say we did not sell as much product as we thought they would. does that bother you? time, it doesne not anymore. apple for the long-term.

so, it is always striking me as zarre that there is a fixation on how many units are sold in the 90 day. -- 90 day period. we try to be very clear that we do not run the company for people that want to make a quick buck. we run the company for the long-term. >> one of the shareholders who recently surfaced as by 75 billion additional shares is warren buffett. a pleased to have him as a shareholder? >> i'm overjoyed and thrilled. [laughter] because warren is for the long-term. with the way we run the company and the way he invests. i could not be happier. >> have you thought about this, warren still uses an old flip phone. [laughter] have you thought how much more your stock would go up if used

the product? [laughter] >>'m working on him. i told him personally to do tech support. [applause] [lghr] apple ceo, tim cook there. you can watch the full interview and the new seasonf peer-to-peer conversations tonight on 9 p.m. eastern on bloomberg television. coming up, the big bucks and even they are competitive video games. any sports take over traditional sports? we will take a look, next. and later, twitter stock is skyrocketing over the last year thanks to the company's turnaround efforts. they are making

>> playing video games is big business and the number of peoples watching gamers compete is skyrocketing along with prize moy. look at how many people watch the league of legends world championship. 60 million. that is more than who watched game seven of the world series. one company at the front of this explosion, and a dedicated host and provider of facilities across north america, gamers can play in its drive stage which is basically a truck with multiple gaming stations. the e-sports arena, tyler, thank you so much for joining us. business into context for us based on the trends you are saying. tell us how fast things are growing and how you are making money. tyler: i like up every morning with something new happening in e-sports. i said the same thing about

three ars ago. it goes backround to how we started the company d tarted the company which is because we wanted to play video games with each other. i'm at the bunch of college we built it to be a lan center so we could all be on the same area connection. i could watch his green and my buddies screen next to me so i could see the whole map and have a cold competitive viewpoint of what is going on. >> now you'aking a lot of money doing this. how much money? how? >> we started by doing a membership program where people pay a monthly fee to play video games with us. we take that and also run our own leagues as well. you can come out on wednesday, thursday, friday night, anytime of the week and pay to be part in the tournament. then, we host our own event on weekends as well where we get

sponsors to come in, pay a good chunk of change and have us do a full e-sports event for them from turning into production. >> the council of asia recently the council of asia recently said six video games are official exhibition ts. how excited are you about this as a step toward may be becoming a medal sport? tyler: it would be incredible. it justifies viewership for one and justifies the fact that being an e-sports competitor is very similar to being an athlete. i'm not going to say i'm getting go out and run the decathlon, but there are mental preparedness is that you have to do, training you have to do, and a strategy. whether it is a team sport where you have to strategize based on what move you're going to do against your partner, it is the same thing any sports. that is what a highly competitive nature comes in. have the second edge that we do not have that creates any sport athlete versus a normal athlete. >> at the games is providing

millions of dollars for people to play fortnite. how do you adapt to a hit this? tyler: i love to adapt to it. -- i do nots a hit think it is a hit, i think that is a benefit. unless they do a $50 million tournament, it is hard to go through $100 million in the ne to bethey are going utilizing tournament organizers around the world to be running events for this. las vegas,e did with we hope to be one of the most e-sports tournament organizers where they can supply the prideful and we run the tournament. >> what about how big viewership >> viewership is so big fore? individual streamers. guys like ninja, trout, dr. disrespect, they are getting -- they are fairly talented and fun to watch. >> ninja is getting like 600,000

viewers? >> it's insane. the viewership of that is growing. the best part is he will average about 150,000 viewers on his own in his own bedroom. but, when he competed and came on our stage in las vegas, and e-sports format even he got 600,000 vwers. the viewership is growing when there is something on the line is a competition. >> hide you elevate status to compete with traditional sports? you think e-sports could surpass other sports? >> it depends on the videogame industry itself. league of legends has pioneered the industry when it comes to watching video games on television's. we are mostly watching it through computer the e-sports your is someone who is not sitting on a couch watching tv. he somebody sitting on a computer and watching tv on its computer because he can also play video games at the same time. or he isatching it on his phone. that model is from what

traditional viewership model is which is turning on your tv and living through channels from your couch. the accessibility of vwewill mas traditional sports. >> one of the challenges ahead in terms of what coev e-sports from becong the next e-sports arena are looking touild a foundation, region knowledge he. we have three arenas now and our mobile drive. ist we are planning to do create originality between oakland, orange county, and anywhere else we decide to go that will build the foundation from amateur little league players. these ball is successful because you have a little league system, college system, professional system. you always have a way to build it up. e-sports can have the method of building up instead of grabbing from the top down. i think it will be incredibly successful and that is what the arena is here to do. will be amateur competitive

base, build up originality to it and see how that can grow. ceo, tyler,arena thank so much fo. twitter is rolling out new features to better predict what events you want to know about. could that move bring more viewers to the platform? we will discuss. this is bloomberg. ♪

>> twitter announced it will personalize users and send them the notification's about events trying to attract a broader audience with one of its biggest product update in years. for more, we get to selina wang in san francisco who covered twitter for us. a, what is going to make this time any different than previously? >> this is one of the most conference of overhauls they have had in years. jack dorsey is talking about

personalization, orienting the brand around topics and trends rather than forcing people to have to figure out how to curate their own timeline. you know it takes a lot of time and effort to be creating the perfect newsfeed. we want to shift the birding -- burden to twitter to find out what people want tn ey want to know it's. and why,nic or option instead of having to follow the commentators about it, etc.,s, they will send you a paying and take you to this events page that will sell you a live a feed of what is happening that will alert you to what the latest is. >> how are they doing this? better ai, actual humans working behind-the-scenes to say this for cano in hawaii, this is a huge story, i think people need to know? it is a big process to be able to organize information in lifetime which is what this

is all about. about organizing the content that is already coming through the platform. i spoke to the director of