Analyst: 'The entire future of the Xbox business is in question'

Microsoft's recent Xbox One digital rights management announcements resulted in a significant backlash from the gaming community, and it seems at least one analyst firm now thinks the DRM strategy also puts the entire Xbox division at risk.

According to MCV, DFC Intelligence's "Forecasts for the Video Games Market" report states the firm believes Microsoft's strategy for its upcoming console is "deeply flawed" and will likely result in lower expectations for Microsoft when the firm announces its console predictions in August. Conversely, DFC expects to raise its PlayStation 4 sales predictions as a direct result of Microsoft's DRM requirements and overall strategy.

"So far this has not had a major negative impact on the Xbox business, but that is likely to change with the Xbox One launch," said David Cole, owner of DFC Intelligence. "Right now the entire future of Microsoft's consumer entertainment business is in question and that is likely to have a major impact on the game industry."

In a recent blog post, the firm lamented the fact that Microsoft failed to address its DRM requirements at its E3 press conference last week and revealed a retail price of $499, which it said is "too high." The blog post noted that when Sony announced the entry-level $499 price of the PlayStation 3, DFC speculated Sony would go "from first to worst" in console generations. By comparison, Microsoft's Xbox 360 had an entry-level price of $299 when it was first released.

"We completely understand that the Xbox One is bringing a big leap forward in how people interact with their living room entertainment," the post states. "We grant that high-end first adopters will not be a hard sell for the Xbox One. What we question is whether the mass-market consumer will pony up for this console."

The post went on to address the DRM requirements, asking what will happen "when the inevitable server glitches arise" and the Xbox Live servers are unable to authenticate users for the mandatory Internet check that occurs once every 24 hours in order to play games. Microsoft's Xbox Live servers notably suffered an 11-day outage at the end of 2007, though no major outage has impacted the service since.

Source: MCV via Kotaku | Image via Microsoft

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Microsoft does need to explain this better...

However, in reality if you don't want to play with the Disc in the console, authentication is necessary and the PS4 will have the SAME types of DRM, especially for online purchases.

That's about right... Xbone has no future. Not all consumers are blind and mindless puppets anymore. PS4 without second thought.

This is wrong, the PS3 was $599 at launch not $499. And the 360 was $399. It didn't go down to $350 for a while, then it went down to $299. In USD anyway.

Source: my memory

To put this out there, after the disaster's launch of the PS3, Sony was internally debating about killing off Playstation completely, they decided to stick it out.

Jason Stillion said,
To put this out there, after the disaster's launch of the PS3, Sony was internally debating about killing off Playstation completely, they decided to stick it out.

Sony never even thought of killing off one if the worlds biggest game consoles in the world I'm not sure where you read that but its far from the truth.

If that's the case then Microsoft should be talking about killing the Xbox one right now.

Absurd

Jason Stillion said,
To put this out there, after the disaster's launch of the PS3, Sony was internally debating about killing off Playstation completely, they decided to stick it out.

Sony never even thought of killing off one if the worlds biggest game consoles in the world I'm not sure where you read that but its far from the truth.

If that's the case then Microsoft should be talking about killing the Xbox one right now.

Absurd

Jason Stillion said,
To put this out there, after the disaster's launch of the PS3, Sony was internally debating about killing off Playstation completely, they decided to stick it out.

Don't forget that PS3 decided who was the winner of the media format, BluRay killed HDDVD. So, it is not strange that now MS is using BluRay.

Im a father of two boys and they both play on the xbox360, and i like the idea's of the xbox one....like one xbox Live gold for everyone on the xbox.....and i like the no disk gaming, also the best on is the library sharing.....that is awesome because All i have to do is buy one game instead of two(like halo), so im sorry but my bet is on the xbox one....I save on games and xbox live also

Don't forget to keep paying internet bill or keep some backup internet plan in case if your internet gets disconnected and your Xboner turn in to DVD player. Good luck with your sharing.

Say what? Is he likely to forget paying his internet bill because his games console depends on it?? If his internet goes down for a few hours his life is ruined because his games console won't work?? Maybe he has a life?

b_roca said,
Say what? Is he likely to forget paying his internet bill because his games console depends on it?? If his internet goes down for a few hours his life is ruined because his games console won't work?? Maybe he has a life?
I always make sure my internet is on.....and always have backup plans.....its just the xbox one will save me money in the long run.....sorry to disapoint

mikemc2k said,
its just the xbox one will save me money in the long run

I find that highly unlikely. But time will tell.

MS may dump the XBOX entirely if it costs them too much money and it just might. Problem with MS is their business people leading their gaming division have no clue about gaming and can only see dollar figures, whereas Sony is mainly a gaming company. One thing is for sure, the next XBOX will fail, hard.

Nice attitude towards all those people working there.
They'll love you hoping their jobs go bey bey...

Hating a company is plain idiocy.

Being a fanboyism is a higher level of idiocy.. I do not wish anyone loosing a job because of company failure but decision of management to bring inferior and anti-consumer product will result in failure of company. That is how market works. Being a socialist will not protect bad company policies or decisions.

Dutchie64 said,
Nice attitude towards all those people working there.
They'll love you hoping their jobs go bey bey...

Hating a company is plain idiocy.

When that company takes a treasured platform and TRASHES it, it makes sense to hate that company. When they push restrictive DRM on the masses and try to make it "the new normal", there is reason to hate that company. When they take away basic rights that we have enjoyed on the current hardware in favor of a system that only benefits THEM and not the users, there is reason to hate the company. When the company promises to respect user privacy (in response to concerns about the Kinect) then it is revealed THE NEXT DAY that they were the FIRST company to sign onto the NSA's PRISM program, there is a reason to hate the company. When concerns are raised about the "always online" DRM, and the official response for people without internet access is to buy an 8 year old console as an alternative, there is reason to hate the company.

I could go on and on and on about why it's OK to hate Microsoft right now, but I will leave it there for now.

NightDragon - not defending the $499.00 price tag as it is higher than expected but Sony is not far behind. Perceived value will drive the sales of these units and one will emerge victorious in the fall. I have a feeling MS could win that battle as they have in the past. MS has a long term strategy with Hollywood and the Cable Networks and are working those relationships while Sony hasn't been that engaged in the process recently. It could start up soon or many things behind the scenes are taking place before launch.

Digital downloads will be the future as RedBox, Netflix, Hulu and others are gaining traction and internet speeds are getting faster. Some will suffer due to this many will benefit from it.

Brick and Mortar stores will have to figure out a new model when digital becomes standard as people will sit in their homes and download overnight or setup to download when a new title is released. It will be interested to see how this shapes up in the near future.

Adobe moving towards all cloud, Downloads are picking up for OS releases and upgrades. Apple has moved away from the Disc and many companies will follow suit.

I hope Microsoft sells a ton of them and it is not so much the price that concerns me. It is the DRM requirements for what is suppose to be a gaming console. What they are coming out with is more like a set top box with a gaming as an option. I totally agree that digital downloads will be the way of the future, but not for about 3 to 5 years. Streaming is no where the same as watching a movie on a Blu-ray disc. Trust me I wish nothing but success for Microsoft, but with this new Xbox I think they are going to be in for long battle.

There are many parallels between Microsoft's recent actions with Xbox and Sony's actions with BetaMax. Most of remember what happened to the latter situation.
On a broader viewpoint, Microsoft's arrogance has and is blinding them to the lessons of history. Most of us know that infamous phrase to which that applies.

This seems as good a place as any to ask, it is an "Analyst" article

Does anyone know what the exact score with the game libraries and game sharing is? I read a comment earlier that sort of said, well you can now get the game for half price if you go 50/50 with someone in your library/friend list (whatever it`s called).
This may work fine if you can both play the game straight away but can you? Will you have to work out some roster type thing where both people play the game on different days?
Can you both play in a multi-player online game at the same time for the first few days after release or at any time?
Surely most people wan`t to play a looked forward to game the first few days after release...

Whoever purchased the game will have access to the game 24/7, so just say you bought a game added it to your shared library. Your friends on your shared list will only be able to play a shared game as long as no one else on your friends list is playing that shared game. So say you are playing your newly purchased Dead Rising 3. One of your shared friends could be playing Dead rising 3 at the sometime as you.Also, even if you did go 50/50 on a game, only one person would be able to register the game as the owner. Lol, so if you and your buddies decide to do that, make sure to get it under your profile, so you can get 24/7 access to the game. Also it would be the other way around and you would be able to access your friends library as well as the shared user. There will be a max limit of up to 10 people you could add to your so called Family list. No idea if there will be a limit on how many shared titles you could share and not sure if DLC would be shareable as well.

I am going to start off by saying I am huge Microsoft fan, but I am very disappointed at how Microsoft is going about the Xbox one. I totally understand that this is a digital age, but not everybody in the world has internet access. I just don't think it is the right time to make these kinds of requirements. Consumers want options and they are not getting that with the Xbox one. I have a Xbox 360 and will NOT be upgrading anytime soon nor will I buy Sony's PS4. Not everybody has $500.00 to shell out for a new console, which I think is over priced. Just like I think they overpriced both the Surface tablets. The Surface RT was starting at $499.00 and it is not even a full OS. Oh yeah don't if you want the keyboard another $129.00. I have Asus VivoTab RT and about $400.00 with the keyboard. It is just my opinion I think they over price there stuff.

time to rollback, M$ its not too late. when your console release plagued with DRM, annoyance and US only centric features and alienate 90% of the world you are not in position to stay quiet and let this rip.

Its not too late, step back and move foward.

eilegz said,
time to rollback, M$ its not too late. when your console release plagued with DRM, annoyance and US only centric features and alienate 90% of the world you are not in position to stay quiet and let this rip.

Its not too late, step back and move foward.

alienate 90% of the world -- how do you figure ?

Grizzwald said,

alienate 90% of the world -- how do you figure ?

you didnt receive the memo? xone its region locked and even IP locked it wont work outside of the 21 supported country. basically i can import the xone but the DRM "features" wont allow me to use it in my country, i cant activate any game, or cant even start the console.

This its not like x360 where it can be played even on unsupported countries.

SteveyAyo said,
Luckily for us they don't listen to those who would want you to stop progress forward and just want another Xbox 360.

x360 was microsoft success sure ps3 beat them in the end but it wasnt a bad.

PS4 is nothing more than a prettier last gen console, XB1 was an ACTUAL step forward. All ive heard for years is a ton of "hardcore gamers" crying out for a Steambox, well Microsoft just made a better one and everyone wants to bitch

SteveyAyo said,
PS4 is nothing more than a prettier last gen console, XB1 was an ACTUAL step forward. All ive heard for years is a ton of "hardcore gamers" crying out for a Steambox, well Microsoft just made a better one and everyone wants to bitch

its funny that you call ps4 a last gen console only because can do more, better specs, better price and more user friendly. Plus xone and ps4 almost have the same specs.... if US centrics features that i cant access everywhere make it a better deal good for you to live in america but for everybody else its just a bigger more restrictive and expensive gaming console.

hardcore gamers didnt want "steambox", it s mostly the master race which wanted the steambox, what microsoft its doing its very far from a steambox, its more restricted, with 24 hours checkins, and steam can play offline but xone? nope, steam its not region and IP lock with all their games with few exceptions like GFW which guess what its microsoft first attempt to fight steam and lose very bad that one, and you know why because of crap DRM.

Xbox 360 has out sold all consoles for 29 straight months!!!! A 7 year old machine just sold another 114,000 units in May. I think Microsoft is making a big mistake with DRM requirements. It's BS and they will suffer in the long run. The Xbox will never be on top for 29 months in a row. I will stick with my Xbox360 until it will not run anymore. And don't think because I said this that I am a PS fan, not at all. I love Microsoft's products. I am huge fan of Windows RT, 8, & Windows Phone 8. I just think that they this one wrong.

That's fine, not everyone needs to advance with the rest of the world, there will always be those who get left behind... like the Amish. The only mistake Microsoft made with the Xbox One was having physical discs at all. Had they not had physical discs no one would be crying because it would absolutely be a Steam Box, as it is everyone has delusions about content ownership and how used games sales don't affect developers...

I don't some Big Ass Corporation telling me when I should and should not connect to the internet. That should be the consumers chose. MS needs to listen to what people want, not what they determine is correct. I don't care either way because I am not buying either system when it comes out. All I know is if I made the comments that Don M. made at that press conference I would no longer have a job. He is one arrogant a--

My GameStop is sold out of Xbox one preorders so it seems it ain't that bad. I'm getting a ps4 because Sony makes outstanding hardware but still if its in so much trouble why is every store sold out of Xbox ones 4 months before launch

Brony said,
How many consoles were sold out?. ;-)

Stores around me had anywhere from 25-50... they were all sold out, the PS4 was available tho

Grizzwald said,
My GameStop is sold out of Xbox one preorders so it seems it ain't that bad. I'm getting a ps4 because Sony makes outstanding hardware but still if its in so much trouble why is every store sold out of Xbox ones 4 months before launch

http://www.tapscape.com/ps4-outsells-xbox-amazon/

Here is a better indicator. We aren't talking 25-50 consoles here, we are talking THOUSANDS if not TENS OF THOUSANDS of consoles. Some unofficial sources are saying that the PS4 is outselling the Xbone 2 to 1!

John Nemesh said,

http://www.tapscape.com/ps4-outsells-xbox-amazon/

Here is a better indicator. We aren't talking 25-50 consoles here, we are talking THOUSANDS if not TENS OF THOUSANDS of consoles. Some unofficial sources are saying that the PS4 is outselling the Xbone 2 to 1!

that article is bunk. xbox sold out 4 hours after e3,took ps4 more than a day. xbox got more stock,sold them, then ps4 got more stock. and all these sites are basing their articles on the amazon best seller list,which only tracks the last 24 hours of sales. everytime xbox retakes the first spot,you don't get any of these articles. their plan is to confuse people like you,who believe anything written on the internet.

I generally have a low opinion of Analysts, but I have to agree here. The price is out of wack, the DRM is restrictive, and they now claim to have been trying to replicate Steam without the cost savings... It's absurd, and will certainly hurt them this generation.

The DRM is hardly restrictive if it allows up to 10 people share your game library along with any user on your console... To see restrictive DRM download Steam.

As for cost savings, again steam doesn't release AAA titles at a hugely discounted price, they come months later during sales, you can expect the same to occur here

its restrictive, you cant play this on any other place that its not inside their 21 "supported countries" its not even region lock its features IP lock too....

So you wont be able to play the Xbox One in places you cant buy it... that's rough.

Lets not forget the 21 countries are only for launch day

SteveyAyo said,
So you wont be able to play the Xbox One in places you cant buy it... that's rough.

Lets not forget the 21 countries are only for launch day

well in my case that i live in latin america there was imports and sell for x360 games supported or not, it works, but now with xone its more restricted than steam

SteveyAyo said,
The DRM is hardly restrictive if it allows up to 10 people share your game library along with any user on your console... To see restrictive DRM download Steam.

As for cost savings, again steam doesn't release AAA titles at a hugely discounted price, they come months later during sales, you can expect the same to occur here


When I can't buy a used game on EBay, it's too restrictive...

And when you are pushing a download only delivery method, which saves publishers a ton of money, downloaded games should be cheaper.

An analyst is repeating what everyone else has been saying for a while now. When will the rest of us get their own article?

Of course Microsoft is taking a huge risk here. They have a very different vision for the future. One where content ownership isnt tied to a disc but to an account and goes beyond one platform. It has its benefits but at the same time a lot of negative consequences. Too big for some, perhaps for too many people.

I like to be in one ecosystem. And I've picked Microsoft ecosystem but I'm not too happy about it either. Partly because the restrictions might have consequences for me personally but also because I dont want to buy a console that nobody else wants. So I'll have to wait and see. A real shame because I like my Windows Phone and Surface.

I will say this. If Microsoft does screw up Xbox and by that time Windows Phone hasnt gone past 10% marketshare worldwide, I will start looking elsewhere. I've never been an Apple fan and I've had some serious issues with Android but perhaps they know have their things in order. Microsoft better watch there steps because I know I'm not alone in this!

Ronnet said,

I like to be in one ecosystem.

MS does not understand about ecosystem. For example, if you buy a game for pc then, you get nothing for the xbox (may be some lousy achievement and nothing more). And technically it is possible that indies develop games for windows 8 and those games to run inside the xbox one. However, MS is shooting in the foot : no indies and not cross compatible games.

Ronnet said,

Partly because the restrictions might have consequences for me personally but also because I dont want to buy a console that nobody else wants. So I'll have to wait and see. A real shame because I like my Windows Phone and Surface.

Xbox wasn't never a popular console also Xbox 360 wasn't a popular console during the first 3 years.

MS will not have any problems trust me. They will move from the hardcore gamers only gaming console to a gaming/infotainment console and they will be all the better for it.

Smart TV's which was once a sought after idea has gone to the wayside to Apple TV, ROKU and the likes. DVD players for $79.00 offer SMART TV features without having to upgrade to the smart TV. It literately killed that market in an instance.

As more and more manufacturers learn to accept standards they will benefit from it. They do not have to spend the money on how to make their feature rich instead they can concentrate on better picture quality, reduce production costs and get 4K out to consumers much faster at a lower entry cost.

The XBOX ONE, Apple TV, Roku, etc will bring the info to the TV and in a much better way than the TV manufacturers themselves can do.

I can't wait for my XBOX ONE to get here.

The DRM is not that big of an issue until it hits and PS4 gets a word from their developers that they want to DRM or charge additional fees for access. Until then speculation is just that speculation. MS will enjoy another decade of being the little train that could. PS2/PS3 came out and was more powerful and feature rich even with BluRay and still can't beat the XBOX 360 in sales. Perhaps in Japan but not in the US.

Analysts are a lot like blind meteorologists they can't forecast anything until they are standing in the rain to feel it. Even then they get it half right at best.

You are self-contradicting. The reason the 360 was more successful than the PS3, was that it had a starting price $200 LESS than the PS3's starting price. Not to mention, Sony was doing the EXACT same thing MS is doing now, speaking arrogance against consumers.

Also, you are right in that an entertainment console is bigger than just a 'gaming' console. But, the contradictory thing, is that the people that want a 'full' device are more along the lines of casual, and don't want to drop $500 (or even $300ish) for a casual device. Another factor, is the 'casual' crowd usually asks the 'hardcore' crowd what they should buy. And the hardcore at this point in time, is screaming PS4.

greensabath said,
You are self-contradicting. The reason the 360 was more successful than the PS3, was that it had a starting price $200 LESS than the PS3's starting price. Not to mention, Sony was doing the EXACT same thing MS is doing now, speaking arrogance against consumers.

Also, you are right in that an entertainment console is bigger than just a 'gaming' console. But, the contradictory thing, is that the people that want a 'full' device are more along the lines of casual, and don't want to drop $500 (or even $300ish) for a casual device. Another factor, is the 'casual' crowd usually asks the 'hardcore' crowd what they should buy. And the hardcore at this point in time, is screaming PS4.

yea the casual crowd asked the hardcore crowd what to buy, and the hardcore crowd told them buy a Wii. LOL, whered you pull that one out of?

The Wii was $250 at launch. It was squarely aimed at the casual crowd. It was marketed very successfully, and generally didn't receive any 'hate' from critics.

The Xbox One (which is aiming for this same mass-market audience) is priced at $500, and is receiving TONS of hate comments (albeit a lot are not true), but the facts are that these negative comments have spread to casual consumers.

You also have to remember, 8 years ago, E3 wasn't as big as it is now. I don't mean big as in the literal size of everyone that attends. But Big, as in recognition beyond the hard-core crowd. At a bunch of the press conferences now, you have movie celebrities touting games. You didn't have that 8 years ago.

Self-Contradicting? Really? How so? Price was not part of my conversation nor was it the overall reason why the PS3 was less successful than the XBOX 360. Come on give me a little more intelligence than that. You don't think that a better overall ecosystem along with bigger and better titles didn't drive the sales of XBOX?

PS3 could have and did lower its price to compete and still can't outsell the XBOX 360. So where it the price being such a factor? Games are what drives gamers to a console. Price has some relevance but if the system "sucks" or the eco-system "sucks" then gamers will move to the next console and pay more for a better experience.

Look at the PC vs MAC situation. Price doesn't always drive the value so your comment about lower prices caused the exodus or sway from PS3 to XBOX 360 is unfounded. Prices are comparable now and XBOX 360 still outsells the PS3 does it not?


greensabath said,
The Wii was $250 at launch. It was squarely aimed at the casual crowd. It was marketed very successfully, and generally didn't receive any 'hate' from critics.

The Xbox One (which is aiming for this same mass-market audience) is priced at $500, and is receiving TONS of hate comments (albeit a lot are not true), but the facts are that these negative comments have spread to casual consumers.

You also have to remember, 8 years ago, E3 wasn't as big as it is now. I don't mean big as in the literal size of everyone that attends. But Big, as in recognition beyond the hard-core crowd. At a bunch of the press conferences now, you have movie celebrities touting games. You didn't have that 8 years ago.

you do realize the xbox one is not just aimed at the hardcore crowd anymore. its digging into different markets including the casual crowd, which by the way is what made the Kinect so successful, 1/3 of xbox 360 owners went out of their way to spend $100-$150 to buy the thing. some hardcore gamers are just mad because xbox is going mainstream,and it isn't exclusive to them anymore. look at all of them dismissing Kinect for example. Kinect was the fastest selling consumer electronics device ever when it was released,according to the guiness book of world records. market realities are totally different than what you would read on hardcore gaming or techy type sites.

Sadly I have to agree. I am all MS, I hold Multiple MS Certs for over 15 years now, My whole house is Microsoft. 3 Surfaces, 5 Nokia 920s, 6 Windows 8 computers, 2 Widnows 7 computers, 1 Xbox, 3 Xbox 360s, and on.....

I do not like what I am seeing from Microsoft. Personally, Always on and the DRM is not going to effect my off. This however is bigger then just me.

Many of my Soccer Players, have a 2nd hand Xbox, but no internet. When I was in the Marines, I took my Xbox to the desert with me. It keep us out of trouble, during our down time.

I much as I LOVE windows 8, Yes I really do, and agree with moving to the touch interface UI, I do not agree with their Xbox decisions.

Here is to hoping they Change their minds...... Because if they do not, I will not have one.

Cant say I disagree with the analysis. The X1 has restrictions its competitor doesnt have, not too much of a stretch to see why the X1 wont sell as well which in turn affects the Xbox division as a whole. Wouldnt be too bothered to see MS as a whole take some big losses for the stupid decisions they have been making of late eg skype video messaging on all mobile platforms but their own. Genius. /s

Did the analyst take inflation into consideration? $499 PS3 wouldn't seem as bad today as it were back then when the average console price were lower. Isn't an iPad $499?

AWilliams87 said,
Did the analyst take inflation into consideration? $499 PS3 wouldn't seem as bad today as it were back then when the average console price were lower. Isn't an iPad $499?

By the same token, adjusted for inflation, most people make quite a bit less than they did a few years ago. And don't even try to adjust for inflation like they did years ago when food, energy, and other things were included in the inflation number.

Condere said,

By the same token, adjusted for inflation, most people make quite a bit less than they did a few years ago. And don't even try to adjust for inflation like they did years ago when food, energy, and other things were included in the inflation number.


Did you try to counter my point, or add to it? "By the same token", the average salary has increased, but adjusted for inflation, it's about the same as a few years ago. Same with the true price of the Xbox One to the Xbox 360. They aren't dissimilar if you make the adjustment. So people comparing the $499 Xbox One to the $499 PS3 a few years ago doesn't make sense. The PS3 was more expensive.

AWilliams87 said,

Did you try to counter my point, or add to it? "By the same token", the average salary has increased, but adjusted for inflation, it's about the same as a few years ago. Same with the true price of the Xbox One to the Xbox 360. They aren't dissimilar if you make the adjustment. So people comparing the $499 Xbox One to the $499 PS3 a few years ago doesn't make sense. The PS3 was more expensive.

The unemployment rate in the US in 2006 was 4.5%, right now its 7.5%. Also the median household income in the US has fallen quite a bit since 2006...Basically people have less money now than they did in 2006, and yes the xbone is more expensive than the PS3 was at launch.

Sonne said,

The unemployment rate in the US in 2006 was 4.5%, right now its 7.5%. Also the median household income in the US has fallen quite a bit since 2006...Basically people have less money now than they did in 2006, and yes the xbone is more expensive than the PS3 was at launch.

to you maybe. to me its cheaper.

vcfan said,

to you maybe. to me its cheaper.

Did you not read what I typed? The facts I referred to were regarding "people" not "me". People in general have less money now than they did in 2006. It makes no difference how you or I perceive cost, facts are facts.

Sonne said,

Did you not read what I typed? The facts I referred to were regarding "people" not "me". People in general have less money now than they did in 2006. It makes no difference how you or I perceive cost, facts are facts.

that flew right over your head. im not even going to explain.

I totally agree w/ what this analyst is saying, except for one thing.

"We grant that high-end first adopters will not be a hard sell for the Xbox One. What we question is whether the mass-market consumer will pony up for this console."

In both markets, the Xbox one is a hard sell. Hardcore gamers are going to be flocking to PS4 b/c of the Xbox DRM, the fact that the PS4 is $100 less is just icing on the cake.

I am a hard-core gamer, and am a big 360 & Halo fan. That being said, I am staying far away from the Xbox One. It's DRM policies basically are calling me a thief, and a slap in the face.

As far as the mass-market is concerned, here's another story. My friends wife, who is the total opposite of a hardcore gamer, has even heard 'bad thing's' about the Xbox One. She would represent the mass-market consumer. (On a side-note, she questioned why anyone would spend even $400-500 for a console, meaning she doesn't see the value in the high-end graphics, etc.) But the fact that the Xbox DRM news is reaching in the casual mass-market crowd only brings more woes to Microsoft.

MS has a serious PR problem to deal with before the console lost. And arrogance against consumers w/ statements like "You don't have internet, buy a 360" says that they are following in the same steps as Sony w/ the PS3.

Unless they change their policies and do a serious shift in strategy, I feel that Xbox will suffer a huge setback. I won't say that the Xbox One will be a complete failure, but it certainly won't continue the success of the 360 as-is.

Umm...how bout YES.

I spend $500 on a device to block me from playing any games if I'm offline for more than 24 hours. That is basically saying "We don't trust that you own your games, so you can't play any of them, until we double-check"

A solution to this issue, would just to require a user to put in the disc to play the game, as opposed to blocking games from being played w/o a 24-hr check-in.

The disc solution sounds smart until you remember that someone could install the game on their console and give the disc to their friend who isn't connected... effectively stealing the game as their would be no way to tell that someone is using the disc on an unconnected console.

You do realize that having the disc is still a form of DRM...without the disc, it's still a "double-check" as you put it. It's how it works on the Xbox 360 today. Without DRM it would be like installing a PC game with no CD-key and never having to insert the disc. You are telling me that majority of people won't give that to friends? That is basically what happened to the music industry.

SteveyAyo said,
The disc solution sounds smart until you remember that someone could install the game on their console and give the disc to their friend who isn't connected... effectively stealing the game as their would be no way to tell that someone is using the disc on an unconnected console.

Wow... unbelievable, stealing, really? So if I finish a novel and pass it on to my sister that makes me a thief? If I share anything I have with anyone that now makes me a thief, wow thats interesting. Sounds like you have fallen right in line and are the target demographic Microsoft is looking for, congratulations on that.

Sonne said,

Wow... unbelievable, stealing, really? So if I finish a novel and pass it on to my sister that makes me a thief? If I share anything I have with anyone that now makes me a thief, wow thats interesting. Sounds like you have fallen right in line and are the target demographic Microsoft is looking for, congratulations on that.


He was stating the fact that, if it does not do the 24h check, he could just easily install the game remove the disc from the drive than pass it onto another friend, so he could just install it and both of them would be be gaming at the sometime, with the book reference only one of you guys could be reading it at the sometime, unless you plan on having your sister hover over your shoulder and you both read the pages together, which isn't really a realistic situation.

Sonne said,

Wow... unbelievable, stealing, really? So if I finish a novel and pass it on to my sister that makes me a thief? If I share anything I have with anyone that now makes me a thief, wow thats interesting. Sounds like you have fallen right in line and are the target demographic Microsoft is looking for, congratulations on that.

I think you missed the point, he was talking about me buying and installing a game and being connected to the internet fine, then giving that disk to my friend - I would be playing and authed based on 24 hour checkin and he would be able to play offline based off disk auth checkin. This would cause a mess of people gaming the system to avoid paying for a game.

Now the XboxOne system allows me to share my games with upto 10 people, but we all have to checkin and so there is an element of control which will appease the content owners while still giving me far more freedom than I have today for sharing my games (as in I lend it to a friend and I cant play it until he gives it back - now I don't have to give a disk as upto 10 friends can simply play it and I can play theirs).

greensabath said,
Umm...how bout YES.

I spend $500 on a device to block me from playing any games if I'm offline for more than 24 hours. That is basically saying "We don't trust that you own your games, so you can't play any of them, until we double-check"

A solution to this issue, would just to require a user to put in the disc to play the game, as opposed to blocking games from being played w/o a 24-hr check-in.

If they were to drop the 24hr check in and made physical disc mandatory, they would not be able to implement the family sharing feature, which if true how it is stated, could turn out to be an amazing feature. Regardless, yes they did leave E3 with a sour taste with all the confusion they created.

kravex said,

Not for John Riccitiello it wasn't...

he left because of years of subpar financials. people complained massively about sim city but it still sold. internet whiners != what happens in reality.

Not to mention that the entire issue with the current Simcity was that it was different from the previous version (which has not gone anywhere, and is still available for sale). Here's a surprise - the advantages of the SimCity model FAR outweigh the disadvantages - at least for me; such as my saves being server-specific. (Nobody is locked into a specific server - I rotate among four servers, and I can ALWAYS add more servers to the rotation. The ten-save limit is per-server, and the game itself is NOT server-locked, or region-locked, either. Even if I were to stick to just my current four servers, that means I can have as many as FORTY cities running at the same time - the one city I am working on, and the thirty-nine others running in the background. No other simulation game can even go that far - and that includes ANY previous version of SimCity. Basically, there's less there than folks are claiming.)

vcfan said,

he left because of years of subpar financials. people complained massively about sim city but it still sold. internet whiners != what happens in reality.

Really? The guy suddenly departs immediately after the fiasco that was the SimCity release, and you're trying to tell us that those two events were completely unrelated?

I suppose the NSA isn't spying on us, either. Jeez.

Hambone72 said,

Really? The guy suddenly departs immediately after the fiasco that was the SimCity release, and you're trying to tell us that those two events were completely unrelated?

I suppose the NSA isn't spying on us, either. Jeez.

if whatever you are saying is correct, why is the game still online only,and ea saying there wont be an offline mode? logic...use it

I'll say it again and it doesn't matter whether the article is aimed at MS or Sony (or anything else for that matter), Analysts have proven themselves wrong constantly over and over again, how they make any money out of it i don;t know.

Microsoft does not care about the consumers by putting drm on its consoles. DRM makes sense for other things but absolutely not for a game console. Gamers in the past always liked easily and freely, selling, lending, giving, and buying used games. This whole DRM thing and Microsoft being quite about it, to me feels very shady.

DRM makes sense because the Xboxone is at first a digital content console that has the option to deliver that digital content from a disc. They are also allowing sharing, used games sales and other option to try and bridge the gap.

The fact is the hate train is rolling, Sony Fanboys see a weakness and have alot of pent up anger from the last 6 years so they are piling on.

MS needs to probably sit tight, let some of the stupid rage boil over, deliver a very concise message on all the options for the Xboxone once the rage tempers a little and then deliver on the games.

It may be rough to start out but the Xboxone is going to be the more future proof console. The PS4 has more local power but it is simply a PS3 + Prettier graphics. The Xboxone is a change for the industry and people are flipping out and letting out raged Sony Fanboys get to their head.

Lone Wanderer Chicken said,
Microsoft does not care about the consumers by putting drm on its consoles. DRM makes sense for other things but absolutely not for a game console. Gamers in the past always liked easily and freely, selling, lending, giving, and buying used games. This whole DRM thing and Microsoft being quite about it, to me feels very shady.

They don't care? They're letting you have access to your family members game library. You can play these games with someone anytime you want. This is why there's DRM.

Sony has much more experience than Microsoft in the game industry. They know what gamers want and what they like. Sony would not make a mistake of putting digital rights management on video games. The Xbox didn't even exist when the ps1 came out. Sony was the first to implement music CD playback, the first to implement DVD and then bluray. They put all these new media features in while still centering around games. Its ironic Sony is the one who's all about DRM, but kept with the same tried and true model of DRM free games.

Lone Wanderer Chicken said,
Microsoft does not care about the consumers by putting drm on its consoles. DRM makes sense for other things but absolutely not for a game console. Gamers in the past always liked easily and freely, selling, lending, giving, and buying used games. This whole DRM thing and Microsoft being quite about it, to me feels very shady.

every console has DRM it's the reason why you HAVE to have the disc in the console when playing a game, and the reason why you can't just copy a game disc, etc. it's just that those forms of DRM is accepted by people.
but until people realize the benefits that they're getting with the new system then they will always be up in arms about it. I for one accept the new system, I just wish they had figure out a way to extend the 24hr check.
it's done to ensure someone doesn't trade/sell their digital copy while having a copy installed
maybe they could do it so as in order to trade/sell a game you have to de-authenticate it from your account. maybe that would eliminate the need for 24hr check. just hoping they look into it a bit more.

BS, it works perfectly for Steam. After the initial confusion dissipates gamers will accept it in the same way they did Steam, lest we all forget how much everyone hated it in the beginning.

Steam is different than a game console. A game console allows you to buy physical copies of a game and then resell it (if you like). On the other hand Steam is fully digital and is on a computer, and not a game console. I have steam and don't complain.

Lone Wanderer Chicken said,
Sony has much more experience than Microsoft in the game industry. They know what gamers want and what they like. Sony would not make a mistake of putting digital rights management on video games. The Xbox didn't even exist when the ps1 came out. Sony was the first to implement music CD playback, the first to implement DVD and then bluray. They put all these new media features in while still centering around games. Its ironic Sony is the one who's all about DRM, but kept with the same tried and true model of DRM free games.

I think you forgot that sony was the ones who placed rootkits/backdoors on people's computers. maybe you should go check up on that. I would never trust a company who place these kinds of things on my computer which is why I have no sony products in my home.

also, if they knew what gamers want, then why did they remove backwards compatibility from the PS3?

and DRM free? I don't think you know what DRM is or the kinds that are. the internet is a very big place and it has all sorts of info, maybe you should go check it sometimes, it can be helpful.

Lone Wanderer Chicken said,
Steam is different than a game console. A game console allows you to buy physical copies of a game and then resell it (if you like). On the other hand Steam is fully digital and is on a computer, and not a game console. I have steam and don't complain.

You missed the point. The Xbox One is a digital delivery console just like Steam. By buying a "physical copy", you are merely buying a means to avoid downloading it all from the internet. Exactly like games integrated with steam, such as the Total War series. The box and game discs now sit gathering dust as the game is now in my steam games library. If it works for PCs, it'll work for other platforms.

ctrl_alt_delete said,
I think you forgot that sony was the ones who placed rootkits/backdoors on people's computers

One of several serious trust issues I have with Sony. Any company that thinks that sort of crap is perfectly ok is a huge no as far as I'm concerned. There's the whole hacking fiasco too but at least they've hopefully learned from that one.

Lone Wanderer Chicken said,
Sony was the first to implement music CD playback

It was the third.

Microsoft needs to then stop advertising the Xbox one like a traditional console and move toward advertising it like a steam like console. People still think of game consoles as the we always played. If Microsoft wants more to jump on board they need to change people's view of what they thought a game console was.

Lone Wanderer Chicken said,
Steam is different than a game console. A game console allows you to buy physical copies of a game and then resell it (if you like). On the other hand Steam is fully digital and is on a computer, and not a game console. I have steam and don't complain.

it's interesting you'd say that because Microsoft allows you to resell or trade in your digital game whether you've bought it at the store or buy it online. and steam doesn't allow you to share your games while still owning.
Microsoft allows you to share your games which you and someone else can play the SAME copy of a game or others can play YOUR games from YOUR library.
traditionally this is not possible. but with the new system is it. and I think this is quite beneficial.

SteveyAyo said,
BS, it works perfectly for Steam. After the initial confusion dissipates gamers will accept it in the same way they did Steam, lest we all forget how much everyone hated it in the beginning.

I can connect my Steam account to any PC I wish, as long as I don't take the pee and have it running concurrently on loads of PC's (and by that I mean running and logged in) they won't ban my account. Bringing my Steam account to a new PC is as easy as putting in a password and then entering the Steam Guard number (theft prevention). No DRM, no paying for extra access codes, no hassle with de-authenticating my other PC's.

Everyone forgets the Sony rootkit on music CD's and the PSN hacking, exploding batteries. Sony has the most lobotomized fans.

Apple and Sony fans are very much like a cult, what we are seeing is 6 years of frustration from Sony fans. They are rabid dogs clinging to all the negative things they can when it comes to MS.

Thing is Sony is the company that is in deep financial problems, their insurance side of them is the only thing keeping them afloat.

It's sickening how Sony ALWAYS gets a pass, these brain dead zombies fans always let Sony get away with everything. Sony fans used to flip out that Live charges a fee for online play and now that Sony is doing it they just make excuses why that is ok because it's Sony.

Javik said,

I can connect my Steam account to any PC I wish, as long as I don't take the pee and have it running concurrently on loads of PC's (and by that I mean running and logged in) they won't ban my account. Bringing my Steam account to a new PC is as easy as putting in a password and then entering the Steam Guard number (theft prevention). No DRM, no paying for extra access codes, no hassle with de-authenticating my other PC's.

no DRM? I don't think you understand that what you just mentioned is actually DRM. and you're sharing your account not actually the content and if they find you out then you lose everything you've paid for. is that worth it?

Lone Wanderer Chicken said,
Microsoft does not care about the consumers by putting drm on its consoles. DRM makes sense for other things but absolutely not for a game console. Gamers in the past always liked easily and freely, selling, lending, giving, and buying used games. This whole DRM thing and Microsoft being quite about it, to me feels very shady.

Umm no. DRM does not affect customers. It affects cheapskates who have a bad habit of not generating profit.

Javik said,

I can connect my Steam account to any PC I wish, as long as I don't take the pee and have it running concurrently on loads of PC's (and by that I mean running and logged in) they won't ban my account. Bringing my Steam account to a new PC is as easy as putting in a password and then entering the Steam Guard number (theft prevention). No DRM, no paying for extra access codes, no hassle with de-authenticating my other PC's.

Wow that sounds 100% like the Xbox One, I can log in to ANY Xbox and play my games. Although I don't think you know what DRM is if youre saying steam is DRM free... Now lets factor in the XB1 being able to share your games library with up to 10 people which is NOT available on Steam... So basically the XB1 is a Steambox +1

Lone Wanderer Chicken said,
...Steam is fully digital...

Umm, no it's not. (well depending on definition of digital I guess)

I have retail disc based version of Skyrim, and it works through Steam.

For some reason I think I have another game that does the same thing.

Lone Wanderer Chicken said,
Steam is different than a game console. A game console allows you to buy physical copies of a game and then resell it (if you like). On the other hand Steam is fully digital and is on a computer, and not a game console. I have steam and don't complain.

completely agree, people play on console because its easy, fast, intuitive and less ANNOYANCE. By introducing PC DRM whats its the point to get a console....

Because it makes Console gaming easier and less annoying... No more waiting in lines? I can download the game and have it day of release without ever leaving my house. Lets not forget about sharing games with friends. I have friends all over the country, to share a game with them now I have to mail it to them, it takes anywhere from 3 days to a week, with Xbox one they can share it digitally ... its all about convenience

bviktor said,

Umm no. DRM does not affect customers. It affects cheapskates who have a bad habit of not generating profit.

That's just BS. DRM affects paying customers even more than pirates.

A pirated movie (or game) has all features enabled and no 10 minute FBI warning to sit through.

Think back to the Sim City release. The pirated version, which didn't call in to the EA servers, actually worked.

I could go on and on. I understand the need for DRM, but to say that it doesn't affect customers is so far from the truth as to be nearly the opposite.

Javik said,

I can connect my Steam account to any PC I wish, as long as I don't take the pee and have it running concurrently on loads of PC's (and by that I mean running and logged in) they won't ban my account. Bringing my Steam account to a new PC is as easy as putting in a password and then entering the Steam Guard number (theft prevention). No DRM, no paying for extra access codes, no hassle with de-authenticating my other PC's.

locked to account/PC = DRM.

All this stuff has beene xplained into detail the last couple of days, but the sane people are shouting into the desert it seems.

Dutchie64 said,

locked to account/PC = DRM.

All this stuff has beene xplained into detail the last couple of days, but the sane people are shouting into the desert it seems.

Never said it wasn't but it's still far less restrictive than limiting it to a single console.

Javik said,

Never said it wasn't but it's still far less restrictive than limiting it to a single console.

it is not limited to a single console, you can go to whichever xbox one you want load/install your games and play even while installing.

TCLN Ryster said,

You missed the point. The Xbox One is a digital delivery console just like Steam.

Nope, you missed the point. Comparing Steam to a console is ridiculous, steam is a client software you download and everyone knows what they are getting when they download it...However xbox is a physical gaming (supposedly) console, historically when you buy a gaming console you also can buy/sell/borrow/lend etc... games, that has always been the case with console gaming, until now, well at least in the xbox's case. You can still do all that with the PS4.

People are mad because the standard they know and expect, and rightfully so, has been taken away by Microsoft.

How can you stand by a faceless corporation that couldn't care any less about you over your fellow consumer that is getting shafted? Pathetic.

Sonne said,

Nope, you missed the point. Comparing Steam to a console is ridiculous, steam is a client software you download and everyone knows what they are getting when they download it...However xbox is a physical gaming (supposedly) console, historically when you buy a gaming console you also can buy/sell/borrow/lend etc... games, that has always been the case with console gaming, until now, well at least in the xbox's case. You can still do all that with the PS4.

People are mad because the standard they know and expect, and rightfully so, has been taken away by Microsoft.

How can you stand by a faceless corporation that couldn't care any less about you over your fellow consumer that is getting shafted? Pathetic.

dont' try to come with your righteous crap, maybe you should really take a look at the sony you're supporting.

anyways, I don't know if Microsoft is a faceless corporation or not but one thing I know they're giving me the feature of sharing my games in ways I have never been able to before so if they're faceless to my "fellow consumers" for that then I dont' know what faceless is.

of lot of you sony fanboys are full of crap spewing your "righteous" crap talking about other companies doesn't care about consumers. I didn't know sony placing rootkits on people's computers was them caring about consumers. my computer was one of those that had sony's rootkits and I will never trust them again. a lot of you guys seem to have a very short memory span. so please keep your righteous nonsense to yourself.

ctrl_alt_delete said,

dont' try to come with your righteous crap, maybe you should really take a look at the sony you're supporting.

Who said I am supporting Sony or even a fan of Sony? In this case they are simply the lesser of two evils.

Sonne said,

Who said I am supporting Sony or even a fan of Sony? In this case they are simply the lesser of two evils.

Lesser of two evils? I think that's subjective and is highly dependent on an individual's needs.

BS, if Sony can survive their PS3 disaster MS can take a little bad PR, Xbox has been making money the last few years no way MS pulls out now.

Freaking hyperbole BS crap is getting old. People ALWAYS want to draw conclusions before anything has even started.

Their is nothing to be SCARED of, if the PS4 sells more consoles the world is not going to end. Seems MS has priced the Xboxone for hardware profits dayone and they keep talking like they are in it for the long haul.

Sony execs are not going to break into heir office and start killing MS employee's their is no FEAR. It's a business and obvious Sony and MS have different business models right now.

People you are talking this console war crap to far, companies can make more profit even by selling less hardware if their business model is different. MS are selling a service at this point.

No one is afraid, no one is going to die, companies are not going to be turned to dust if Sony sells more PS4's.

DPyro said,
If the recent Amazon poll is anywhere close to being accurate, Microsoft should be scared.

The fact that Amazon pulled the poll early should bring some other questions up, however it was on Facebook so gaming the poll theoretically should be a lot harder. (ie; one vote per facebook user. Not like using Tor to game a poll by changing your IP every few seconds.)

I'm pretty sure Microsoft's decision will end up being the most logical and profitable for consumers in the future.

I know I'll be buying the Xbox One at launch

The same will come to the PS4. This is like analysts talking about how Sony takes away the 'OtherOS' functionality and backwards compatibility of the PS3... Why are people freaking out again?

I can't even transfer all of the DLC / Playstation Store games I've picked up over the years to another email account. I want to give my PS3 to my nephew but don't want to lose all of the music I picked up for Guitar Hero / Rockband and all of the indy games...

Anyone know how to do that or is that a DRM/limitation that Sony has on PS3?

They've stated no DRM on 1st party titles and the fine print says 3rd party publishers can use DRM if they choose to do so. No one talks about that second bit much do they?

It's going to lead to a mess of issues where everyone does something differently and cause more confusion.

MS may be getting flak now but at least everything has a standard and everything is built through the system instead of just random like the PS4.

You can't transfer your store purchases, just like with apple store. You would need to deactivate the account on your PS3. You can share the account on up to two PS3s (used to be 5 until people abused it).

I am sure the issue here is he has his account, and you have yours. I looked it up and someone said that they had a solution for game content. As long as both accounts are on the same PS3, all accounts on that console can access the game DLC downloaded from the other account. Just goggle it, I found a couple items detailing this.

Patrick Danielson said,
I am sure the issue here is he has his account, and you have yours. I looked it up and someone said that they had a solution for game content. As long as both accounts are on the same PS3, all accounts on that console can access the game DLC downloaded from the other account. Just goggle it, I found a couple items detailing this.

He wants to get the content he bought OFF of that PS3 and give it away to his nephew. If the DLC is tied to his account+specific PS3 hardware ID then he can't transfer all that content over to a new system or the PS4 it seems. He's not talking about sharing the PS3.

Okay. So I would need to keep my account bound to the system as well. That is hardly what I want to do though. I want to remove any association of me, except for my purchases. I guess I understand Sonys DRM now. The software is BOUND/TIED to my account forever.

GP007 said,

He wants to get the content he bought OFF of that PS3 and give it away to his nephew. If the DLC is tied to his account+specific PS3 hardware ID then he can't transfer all that content over to a new system or the PS4 it seems. He's not talking about sharing the PS3.

If he logs in on his nephew's PS3 and downloads everything, it works from what I read. Supposedly all of the content is available to other accounts on the same console. What's so controversial about that?

Maybe you didn't notice but this entry is about the xbox, not playstation. I mean why would anyone bring up the competition unless they were a fanbo.....oh wait

webdev511 said,
They've stated no DRM on 1st party titles and the fine print says 3rd party publishers can use DRM if they choose to do so. No one talks about that second bit much do they?

Actually they have, as it's optional it's not really any different to a PC. There have been a couple of articles discussing how they think after the reception of the ps4 DRM status at E3, and the subsequent hugely positive reaction to it online they seem to think it's highly unlikely that anyone will wish to cause their title to bomb by trying their own DRM.