microsoft

The Xbox could rule the living room with bundled internet access

February 14, 2009 By Dan Thornton

Since I questioned Microsoft’s change in marketing strategy for the Xbox, I’ve been thinking about positive suggestions for boosting the market share of the Xbox 360. And I think I’ve got a good one, although it might be bit odd – as always I’m hoping your comments will aid my thinking.

The idea came to me as:

Microsoft’s Xbox 360 is a major attempt to ‘own the living room’ with a device which converges gaming (especially online gaming), videos, and other entertainement and community building.

The Xbox Live service is a major selling point for the Xbox.

Videos on Demand were one step towards convergence.

Then integrating with Netflix was the next step to boost the pretty measly catalogue of videos on demand. (Sadly still unavailable in the UK).

US broadband suppliers are starting to limit data. Meanwhile in the UK, far lower limits are normal. In fact, one major reason for my decision to go with Zen Broadband was that they offered a decent data limit for 2-8Mb connections, unlike most other ISPs (It’s the maximum speed I can get in my area). But even with a 20GB limit, I’m getting closer and closer to hitting the data limit every month, as more and more of my media usage is online.

So why doesn’t Microsoft bundle internet access with the Xbox 360/Xbox Live accounts?

There may be issues around conflicts of interest etc, but if Microsoft wants to own the living room, particularly outside the U.S, then perhaps becoming an ISP, or partnering with an existing supplier might be the best move they could ever make.

1. If they offered the highest data limits in the market, they’d give an added incentive for families to pick the Xbox.

2. Increased data limits would encourage the download/renting of full films online – as it is, a handful of films would mean no more internet for a month for me.

3. They could ensure maximum compatability, and also work to reduce issues with lag and connections. There are still many issues with online gaming, especially given the speed differences between U.S and U.K for example.

4. They’d be in a position to stimulate broadband improvements, and drive down prices by subsidising the costs with the increase in revenue from an uptake in sales, Live Accounts, and VoD. Plus it may stimulate more innovation in the services being offered. And they’d also be able to benefit from offering services from the entire Microsoft business to families which are likely to have other internet-enabled devices alongside their Xbox.

5. It gives an added incentive for people currently using/considering a PC as a media centre to use the Xbox instead.

It seems to make sense, but in my enthusiasm I may have missed some reasons why this would be difficult/impossible – so please do help improve my thinking through the comments. Maybe we’ll end up with better broadband because of it!

Has Microsoft made a major marketing mistake?

November 21, 2008 By Dan Thornton

I downloaded the new Xbox Live Experience and Dashboard for my Xbox 360 last night, and while the functionality is taking a little bit of time to adjust to, I’ve already decided I don’t like a major part of the strategy. And more importantly, it may be a big mistake for Microsoft.

Everyone in the world knows the success that Nintendo has had with the Wii – which ignored the graphical arms race to focus on party games and family friendliness, plus little WiiMii avatars etc.

But I didn’t buy an Xbox 360 for those reasons. I bought it because I loved the Xbox Live functionality, enjoyed fairly mature games, and saw the potential for digital music and film distribution.

I liked the fact the Xbox was seen as slightly more hardcore than the family Wii or the trendy PS3. I liked the fact it was more of an unusual choice, and that in my opinion it looked quite stylish. I like the fact the dashboard system was quite simple and functional.

But with the new dashboard update, Microsoft has essentially forced me to turn my Xbox 360 into a less fun Wii.

And suddently the Xbox looks more like a copycat than a leader. That’s the marketing mistake.

The two incarnations of the Xbox did something different to the rest of the market by concentrating on online gameplay, and becoming the first console to make good use of broadband. That was the Purple Cow. It’s what built a following for both Xbox and Halo.

It’s what made me tell friends and colleagues why they should get an Xbox and meet up online. Why I talked about how Microsoft were being brave enough to blaze the trail for online gaming. And why people talked about Sony killing their brand. There was talk about convergence, and owning the living room. And as someone who grew up with videogames and has now reached middleage, it was a sign that the average adult could engage with gaming on their own contemporary level, rather than as a childish indulgence.

All that’s now gone.

Not because now I’m forced to represent myself as a cute little fella in a suit and comedy hat.

But because I’m forced to admit MS has copied the success of Nintendo in the cute market, and forced consumers who paid for a different brand and image to copy as well. It’s no longer a hardcore choice, or a Purple Cow. When two competitors start chasing the same ideas, and Nintendo already has the lead and a price advantage, it’s a battle the Microsoft brand can’t win.

Have you upgraded to the new Xbox Live experience, and do you agree or disagree? More importantly, how do you feel about the avatars, and the fact it brands Microsoft as copycats, not tech innovators – and could a brand with the legacy of Microsoft ever compete on that level against Nintendo?

Note: edited a reference to prices, as I incorrectly priced the 360 as more expensive than the Wii.

A market crying out to engage your brand?

October 18, 2007 By Dan Thornton

Last weekend my willpower collapsed and I bought Xbox 360 blockbuster Halo 3. I’d tried to resist, but when 31 friends are online, and 30 are playing one game, it’s near impossible to hold out.

On Sunday evening, over 900,000 players were online, and numbers have topped 1 million. That’s people online at any one time, and people that have paid not only for the game (Up to around £49.99 for the limited edition version), but have also most likely spent out on buying an Xbox Gold subscription for 12 months of online gaming.

Now imagine if your brand or publication had access to a code to make the main character in Halo3 run faster, take more damage, or even a special character design?

Think the chap that has paid £40 to get a game on release, rather than waiting for a discount, would find it easy to resist? Especially with the peer pressure of 30 of his friends waiting to be impressed by his new skills?

And whatever the brands, there’s a likely game to tie in. Whether it’s a racing game, an adventure game, a sci-fi shooter, or something oddball and cute like Viva Pinata.

It’s Open Office 2.3 day….

September 17, 2007 By Dan Thornton

Should you need an office system which sits on your laptop and doesn’t cost a penny, (or benefit Mr B Gates), then you’ll be pleased to know Open Office 2.3 is available from now, here.

There’s a host of new functionality and bug fixes, which are detail in the release notes. Suffice to say I’ve used it as a legal alternative to expensive or hacked copies of Microsoft products, and found it to be really usable, and there’s been no problems using Open Office files with MS Word files when transferring between machines, or home and work.

I’d suspect most people would have an office suite of software on which ever computer they own, but if, for ideological, updating, or ‘Ooops I’ve formatted the hard drive’ reasons you need the likes of a word processor, spreadsheet application etc, then Open Office is ideal.

Forget social networking. The video bandwagon is rolling

July 13, 2007 By Dan Thornton

I’m beginning to think the fad for social networks is going to start to fade shortly. It’s reaching the mass market, and almost every niche is getting blanket coverage by a range of sites. Almost everything you can think of is being covered in one form or another…

To paraphrase from a film ‘ All the great themes have been turned into themeparks” (Bonus points if you can name the film)

But it seems as if the number of video start-ups and press coverage they are getting is growing close to social networking levels. Now that the implications of Googletube are rocking the foundations of the internet, it’s all about live streaming, peer-to-peer, showing your live webcams etc…

The latest one I’m watching is live TV on web and mobile, with ‘a quality image with no buffering or stopping’, from Skinkers. A potential Joost rival/killer:

“it offers the lure that viewers can “‘click’ on a TV advert exactly as they do on the web but while watching your existing TV channels”.

And, Skinkers says, that can all be done without the TV service having to change any of its existing business processes. A version of LiveStation for Macs is being developed.”

And it’s looking less fanciful when you realise it’s using Microsoft’s LiveStation…allowed as Microsoft owns 10 per cent of Skinkers.