Microsoft's Big Bet on Online Gaming

Carl Bialik from the WSJ writes "The Wall Street Journal Online analyzes the prospects of the Xbox's online-gaming component. Analysts say Microsoft has spent hundreds of millions on Xbox Live, with little guarantees of returns. 'It is not clear that companies like Microsoft and Sony will be able to lure large numbers of players -- each has attracted a small fraction of users to online play with their previous consoles,' WSJ Online writes. 'The companies also must be careful about new business models for distributing games -- such as games-on-demand -- so as not to alienate game publishers, who still rely heavily on in-store sales. And games designed for multiple players have a mixed record of attracting customers.' Says analyst Michael Pachter, 'At the end of the day, we don't play games for social interaction ... We play games to escape.' Microsoft's strategy is 'absolutely flawed,' he added.""

Comments

Re:Um

[Alex P Keaton in da]

There was an interesting interview in this month's Maxim with the head game designer at Nintendo (I think that is his title, he is the guy that invented Mario Bros etc.)
He said the big challenge is that games have become so complex, that there are no casual gamers. That the world has been divided into two types of people: those who play games, and those who don't play games.
I see his point- I haven't played a video game in years, aside from ones that can be learned in 5 minutes. I just don't have the time to spend hours every day attaining levels and learning complex controls and commands.

Re:Um

[nine-times]

Why do you think anyone builds model boats? Because model boats are so useful?

Most hobbies are an advanced (and not necessarily bad) form of procrastination. It's a purposeful 'doing what you don't have to do' so that you don't have to think about anything that you do have to do. It's an escape. An escape from your life and your responsibilities. Playing online isn't real social interaction, even if playing multiplayer games in the same room can be.

Sorry, this is as close to "to your face" as I can get.

An interesting question

[ShooterNeo]

This article really sheds light on a fundamental dichotomy : hardcore gamers versus the rest of the public. As I'm sure most slashdotters will post here in a second, online gaming CAN be and generally is far more engrossing and much, much harder than any single player game. Online is also much more technically complex which is the real reason why it's only recently come to consoles : you need a voice chat or keyboard, and to get the kind of smooth gameplay console players are used to you need broadband. So to hardcore gamers like us, there's not even a second's thought : the vast majority of the games in the xbox lineup will be more fun online, if the game is written well enough technically to support it. (for instance, games like Gears of War will probably be a lot of fun Co-op if that game supports it smoothly)

Further, WoW/other MMORPGs and the Battlefield series I think offer some of THE most intense gaming available in any form, anywhere. No console solo or online game or PC game can really touch the intensity and complexity of these games. (and the difficulty level, especially in Battlefield. Even n00bs shoot me down and gun me down every 5-10 kills I get, which is a far harder game that most solo ones)

But the regular public, the joes on the streets who buy game consoles by the millions and make up the "average", fat, T.V. watching, braindead gameplay game playing, Geography ignorant, stereotyping and racially biased, Americans? Who the hell knows what sort of trash they'll really buy. Unfortunatly for us, they make up the real market that Microsoft needs to make money from, and it seems that Microsoft, composed mostly of top C.S. graduates, thinks more like we do.

Re:Um

[cayenne8]

"...those who play games, and those who don't play games..."

Depends on the game too. I actually mis-read the title of the article at first, thinking it said something about MS using the Xbox for online gambling...which really did catch my eye.

If there were some way to do gambling online through a video game...man, THERE would sure be a huge revenue stream there. A virtual casio would be pretty cool...a Sims type world, where you can really win/lose money.