Microsoft defends the Xbox One’s licensing, used game policies

deadone Jun 12, 2013

  1. deadone

    deadone As I walk through the valley of death I shall fear Lifetime Gold
    205/282

    Joined:
    Mar 22, 2012
    Messages:
    913
    Likes Received:
    204
    Trophy Points:
    75
    Gender:
    Male
    Console:
    Xbox
    "This is a big change, consumers don't always love change, and there's a lot of education we have to provide to make sure that people understand."
    This is the extremely diplomatic way Microsoft Xbox Chief Marketing and Strategy Officer Yusuf Mehdi spun his reaction to the PR challenges surrounding the Xbox One of late. And it's true, consumers around the world (and around the Internet) loudly expressed how much they dislike the changes Microsoft announced to its game licensing terms (and online requirements) for the Xbox One last Thursday, giving Sony the ammunition it needed to win E3 by basically doing nothing.
    The reaction wasn't a surprise to Mehdi, though. In fact, he said a lot of the way people have responded to Microsoft's moves was "kind of as we expected." But the implication of his statements in an in-depth interview with Ars Technica was that this temporary confusion and discomfort among the audience would be worth it as gamers and consumers adjust to a console world without game discs.
    "We're trying to do something pretty big in terms of moving the industry forward for console gaming into the digital world. We believe the digital world is the future, and we believe digital is better."
    Mehdi made a comparison to the world of home movie viewing, where inconvenient trips to Blockbuster Video have been replaced with Netflix streaming on practically every TV-connected device. On Xbox One, having all games exist as cloud-connected downloads enables new features like the ability to access your entire library at a friend's house with a single login or loaning games to up to ten "family members" digitally and remotely.
    Those digital "benefits" will be available at launch, but Mehdi hinted that the digital rights management transition might unlock some more interesting game access and distribution methods later on. "In the future, you can imagine the capability to have different licensing models, different ways that people have to access games. This all gets unlocked because of digital." He wouldn't get drawn into details, but when I suggested ideas like an "all-you-can-play" Netflix for games or purely digital game rentals, he didn't shoot me down. "Sure. It could be a variety of ways."
    Mehdi also suggested that the transition to a world of strictly downloadable and online-connected games would help allow for "a diversity of business models" for publishers to take advantage of, from free-to-play titles to $60 AAA games to Xbox Live Arcade games somewhere in between. "As you go into a digital world, what's happening is publishers are choosing to have different business models, and consumers are saying 'Hey, if I can't resell the title, provide me a different way to get value to get into your game.' And we think the market will be efficient in finding good models that work for consumers." In essence, Mehdi said, consumer demand for good value from games will drive prices down, even if a publisher decides to fully cut off the market release valve of used game resale.
    Publishers, of course, have been the most forceful proponents of cutting off the used game market, with some suggesting that used games are comparable to piracy for their bottom line. But Mehdi said that Microsoft wasn't simply "giving in" to publisher demands with its new game licensing terms. Instead, it was trying to balance the needs of its four main "constituents," including the consumer (who comes "first and foremost" he said), game publishers, retailers, and Microsoft itself as a company.
    "Within that, we've tried to optimize, and I think we've found a great balance across all of those dimensions," Mehdi said. "But there are tradeoffs. We do want to support everyone in that system, beginning with the consumer. But we want publishers to get paid for the great IP they work on. We want retailers to be able to drive and sell our products and make a profit. So we are trying to balance across all those."
    Mehdi noted that purely digital game marketplaces like the iOS App Store have thrived despite having absolutely no physical media. Implementing that kind of disc-free system on the Xbox One "may not [have been] the best thing for consumers, and it may not [have been] the thing they [would have] wanted," Mehdi said, which is part of why Microsoft decided to keep discs as an option. Still, he did concede that, without discs, the licensing norms for the system "would be easier to understand."
    The way Mehdi talked about Microsoft's licensing decisions reinforced the idea that he saw the limited abilities to share and transfer Xbox One games as a step up from other, purely digital marketplaces, even if some others see it as a step down from current disc-based distribution systems. On the Xbox One, Mehdi said the company has "tried to… bridge the two in a way that no one has done—to give you the power of digital and then give you all this power in physical. … We know we're providing a lot more value to consumers, but in that comes a lot of need to clarify 'how come disc, how come digital, how's that work?'"
    While the Internet is decidedly up in arms about the way the Xbox One handles game ownership and online check-ins, Mehdi said it was "hard to say" what the larger reaction from the less attentive mainstream consumers would be. "I think it's fair to say there's a segment of consumers at this show in particular who really pay attention, who are very passionate about all aspects of gaming, and that we listen to closely. In a broader set of community, people don't pay attention to a lot of the details. We've seen it in the research, we've seen it in a lot of the data points."
    One data point in particular Mehdi pointed to was the success of the initial pre-orders for the Xbox One, which started as soon as Microsoft's press conference concluded Monday. "Amazon basically says they are on path to sell out… Amazon is saying it's one of their best-selling consumer products. We're seeing the same thing from other retailers." To be fair, PlayStation 4 pre-orders were also a quick sell-out on Amazon after the company's press conference on Monday. Still, "it's very clear there are a wide variety of other consumers that love to game that are excited about what we have to offer with Xbox One," Mehdi said.
    While the Xbox One will sell for $100 more than the PlayStation 4, Mehdi suggested that the extra money spent would be worthwhile to consumers looking for the "best value" in their next gaming system. Besides exclusive titles and gaming content, Mehdi said players would see value in the system being "backed by 300,000 servers backed by Microsoft that enable incredible game experiences." Also, Mehdi said, the Kinect in each box provides for better gameplay and "ease of use for the entire system." Things like live TV support and exclusive NFL and Skype partnerships will also help show consumers the Xbox One's "tremendous value."
    "We want to have our offering be differentiated relative to all others," he said. "It has value that is in so many areas that is not in competing systems… That is a thing that each consumer will choose… and ultimately consumers will decide which is better. It's a big market."
    OK Microsoft still not buying this console until you make a lot of changes

    Source:http://arstechnica.com/gaming/2013/06/microsoft-defends-the-xbox-ones-licensing-used-game-policies/
     
    • Like Like x 3
  2. XPG Varin

    XPG Varin TONKPILS
    145/188

    Joined:
    Apr 1, 2012
    Messages:
    2,746
    Likes Received:
    368
    Trophy Points:
    145
    Gender:
    Male
    Location:
    Birmingham
    Console:
    Xbox
    No matter how much they try and defend it, it will never work they messed up bad, and have to deal with sony winning this one.
     
    • Like Like x 1
  3. deadone

    deadone As I walk through the valley of death I shall fear Lifetime Gold
    75/94

    Joined:
    Mar 22, 2012
    Messages:
    913
    Likes Received:
    204
    Trophy Points:
    75
    Gender:
    Male
    Console:
    Xbox
    Definitely in agreement with you on this one
     
    • Like Like x 1
  4. Memphy

    Memphy Blunts and Bombay
    0/47

    Joined:
    May 20, 2013
    Messages:
    341
    Likes Received:
    63
    Trophy Points:
    0
    Gender:
    Male
    Location:
    Washington DC, United States
    Console:
    Xbox
    "We're trying to do something pretty big in terms of moving the industry forward for console gaming into the digital world. We believe the digital world is the future, and we believe digital is better."

    While the Xbox One will sell for $100 more than the PlayStation 4, Mehdi suggested that the extra money spent would be worthwhile to consumers looking for the "best value" in their next gaming system. Besides exclusive titles and gaming content, Mehdi said players would see value in the system being "backed by 300,000 servers backed by Microsoft that enable incredible game experiences."

    Trying to do something pretty big? BULLSH*T! They are taking measures to stop piracy and by doing so, they have really pushed away their most dedicated customers, the gamers. Digital is not better. I want hard copies so incase something happens to their "magnificent cloud servers" I can still play offline. OH RIGHT I HAVE TO BE SIGNED ONLINE EVERY 24 HOURS!

    The xbox one is $100 because they are money grubbing idiots. The best value is in the PS4. You get so many more features, with better technology for $100 cheaper! I do not see the value in the xbox one for $100 more.
     
    • Like Like x 1
  5. Menov

    Menov 5.0 COBRA R 1993 Lifetime Gold
    0/47

    Joined:
    Jan 10, 2012
    Messages:
    1,761
    Likes Received:
    1,094
    Trophy Points:
    0
    Gender:
    Male
    Location:
    Indiana
    Console:
    Xbox
    Read these PS4 selling comments from Don Mattrick :|

    Microsoft has responded to complaints about the Xbox One’s online requirements by suggesting that those that don’t like it can stick with their Xbox 360.
    Speaking to GameTrailer’s Geoff Keighley, Xbox chief Don Mattrick said, "Some of the advantages of having a box that is designed to use in an online state, to me is the future-proof choice.”
    He continued, “Fortunately we have a product for people who aren't able to get some form of connectivity, it's called Xbox 360."

    Speaking to GameTrailer’s Geoff Keighley
     
  6. xpghax

    xpghax Gold Section Mod/Uploader
    205/282

    Joined:
    Jan 30, 2011
    Messages:
    8,914
    Likes Received:
    3,972
    Trophy Points:
    205
    Location:
    in sidey's basement :(
    Console:
    Other
    They messed up,big time!no going back 4 them now.
     
    • Like Like x 1
  7. Swiftus

    Swiftus Newbie
    0/47

    Joined:
    Feb 8, 2011
    Messages:
    198
    Likes Received:
    28
    Trophy Points:
    0
    Gender:
    Male
    Location:
    Sol 3
    Console:
    Playstation 4
    Just shut up and go home MS and take your ball with you

    Sent from my GT-I9100 using Xparent BlueTapatalk 2
     
    • Like Like x 1
  8. Memphy

    Memphy Blunts and Bombay
    0/47

    Joined:
    May 20, 2013
    Messages:
    341
    Likes Received:
    63
    Trophy Points:
    0
    Gender:
    Male
    Location:
    Washington DC, United States
    Console:
    Xbox
    I agree. Ever since the first press release, they have seriously gone down hill. MS is done if they keep this attitude. With all the stuff going up on the internet comparing the PS4 to Xbox One, you would think MS would CHANGE their policies, but NO, they are just going to continue losing customer support until the release.
     
    • Like Like x 1
  9. De

    DellBoy Veni Vidi Vici Lifetime Gold
    235/282

    Joined:
    May 5, 2012
    Messages:
    4,228
    Likes Received:
    2,569
    Trophy Points:
    235
    Location:
    Under Your Bed
    Console:
    Xbox
    yeah its a massive shame I was so excited about the xbox one even after I heard a few bad rumours I was still all for it xbox one was going to be the best thing I've bought in years and felt like a little boy at Xmas thinking about getting this and now recently after 9 years with xbox and xbox live and not had a playstation since the ps1 I just pre ordered the ps4 because at the end of the day, yeah I can deal with the changes but some are just ridicluas and shouldn't be happerning, and at the end of the day I'm a hardcore gamer and the right console for hardcore gamers will now be ps4, massive shame Microsoft prberly the biggest **** up they even done ;(
     
    • Like Like x 1
  10. Memphy

    Memphy Blunts and Bombay
    0/47

    Joined:
    May 20, 2013
    Messages:
    341
    Likes Received:
    63
    Trophy Points:
    0
    Gender:
    Male
    Location:
    Washington DC, United States
    Console:
    Xbox
    yup, I am in total agreement with you
     
  11. XPGBuSh

    XPGBuSh XPG'S FIFA KING XPG Retired Staff
    205/282

    Joined:
    Oct 23, 2010
    Messages:
    8,125
    Likes Received:
    1,532
    Trophy Points:
    205
    Gender:
    Male
    Location:
    England
    Console:
    Playstation 4
    [​IMG]
     
    • Like Like x 2

Share This Page

Close