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Microsoft's Plan to Be King of All Media

An anonymous reader writes "Saul Hansell from the New York Times spoke with Microsoft's J. Allard, formerly of the Xbox games division and now in charge of their push on Apple's captive audience with the Zune. Allard lays out Microsoft's media battle plan, highlighting their longterm goals for expanding beyond games and software. 'This service will at some point add more options for video and mobile phones, Mr. Allard said, without offering details. Actually, Microsoft has been quite successful selling video downloads and online movie rentals through the Xbox Live service already. This seems a bit too much like the initial plan for MSN. This new network would be the switchboard through which all entertainment content and communication flows. Pretty much everything else in the technology world now is revolving around open systems where the Internet, and some simple standards, are in the middle.'"

25 of 131 comments (clear)

  1. Divx/ xvid support by Merls+the+Sneaky · · Score: 5, Funny

    They better hurry up and pull their finger out of their asses and get Divx/Xvid support for the 360 then.

    1. Re:Divx/ xvid support by Ross+D+Anderson · · Score: 3, Informative

      "DivX followed up Tuesday night's earnings report with a presentation at the JP Morgan SmMid cap conference. JP Morgan analyst Paul Coster coyly probed Kevin Hell about whether or not we were about to see DivX support on the Xbox 360. The question seemed to catch Hell off guard, and while his initial reaction was enthusiasm, there was something about his tone that suggested that Coster might be onto something. Here is the exchange verbatim, but in order to appreciate the awkwardness of the exchange, you should really listen to the quote at the 24 minute mark of the presentation and make your own decision as to whether or not you hear a sense of urgency in Hell's response. Coster - "Just a minor point here, but there was a recent Microsoft (MSFT) conference where I believe their media extender now incorporates the DivX codec on it, is that correct? Can you confirm that and does that mean we're soon going to see Xboxes with DivX on them? Hell - "Yes! that, uh, we're in discussions with Microsoft on that at this point in time, so I can't go into any great detail on that. Um that is not a certified, that is not a certified or licensed product at this time." At that point DivX CFO Dan Halvorson jumped in and quickly changed the subject." From Deeko.com

    2. Re:Divx/ xvid support by CSMatt · · Score: 2, Informative

      Which is why it was already submitted a few days ago.

  2. All media? by Uusilehto · · Score: 4, Interesting

    longterm goals for expanding beyond games and software.
    How about focusing on being the king of software before going for the whole pie? And since when have games not been software anyway?
    1. Re:All media? by CSMatt · · Score: 3, Funny

      First of all, "king of software" goes to the company with the most sales, not whoever has the best software. For that matter, I happen to think Microsoft makes the best software, but that's not what makes them king, it's their indisputable dominance with how much their software is used. To quote Jon Stewart: Whaaaaa?
  3. Ballmermon Restless in Tower Redmondore by HangingChad · · Score: 4, Funny

    The eye of Ballmermon sweeps across the media landscape while orks cut down forests to make more chair weapons to hurl at their enemies. Ballmermon must have the media ring to keep it out of the hands of teh suck Google.

    Precioussssssssssss.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
    1. Re:Ballmermon Restless in Tower Redmondore by mindwanderer · · Score: 5, Funny

      I think that this Ballmeron should worry less about Smoogle and the ring and concentrate more on fortifying his tower before its overrun by the Penguin hosts of the north.

      --
      :wq
  4. Duh! Xbox. by Datamonstar · · Score: 5, Insightful

    This is what I've been telling people all along: that's the reason for the Xbox in the first place. I was so scared for gaming when I first saw that thing because I knew that even though Microsoft's first foray into console gaming would be a complete and utter failure (I was wrong, it wasn't a failure unless you consider the substantial financial loses) their subsequent attempts would be much better because Microsoft had enough money to throw at whatever problem arose the first time. I also make it my point to reason with people that once the consoles market has been thoroughly cornered, and all gaming devices are inextricably mated to the Internet and PC peripherals there will be very little difference between them and the one that serves up everything all at once will be king. Microsoft is doing this, albeit slowly. I give Playstation and Nintendo consoles 20 years more, maximum. Soon we'll have HD movies, and gaming and internet all wrapped up in one device (more or less) and probably under one subscription service that will be hosted by Microsoft. It's not even console wars anymore, it's content wars and there is no way that Sony and especially Nintendo will be able to compete in a long battle because Microsoft has already gotten so deeply involved in the surrounding factors, namely the internet and subscription-based services.

    --
    The eternal struggle of good vs. evil begins within one's self.
    1. Re:Duh! Xbox. by rtb61 · · Score: 5, Insightful
      As data delivery technology matures it becomes minor upgrades. Why would any content producer or publisher want to pay a M$ or google tax on all their content, amounting to billions of dollars every year.

      Bascialy cheap hardware and open standards will mean it will be far simpler and cheaper for producers or publishers to deliver direct. Ballmer has always had delusions of charging an M$ tax on all internet transactions, media, financial, software even browsing, but it is just that a delusion.

      The consumer products companies will win over the long run, as it won't cost much extra to incorporate the additional hardware, in big screen TVs or high resolution virtual reality headsets. Combine those two items with an open source operating system, upon which you can run multiple content delivery systems, and unless M$ starts building a big content library they have nowhere to go.

      --
      Chaos - everything, everywhere, everywhen
    2. Re:Duh! Xbox. by bigstrat2003 · · Score: 2

      Something doesn't have to be completely new and original to be a good idea, you know. Whether the concept has been tried in the past is irrelevant, we didn't really have any mainstream device which did this until now, so the fact that the PS3 and 360 both try to combine a game console with a media center is a good thing, even if it's not original. Hopefully one of them sticks, but even if neither does, it will still be a good idea, and should be something all console manufacturers seriously think about incorporating from now on.

      --
      "16MB (fuck off, MiB fascists)" - The Mighty Buzzard
  5. If you thought network TV sucked... by oDDmON+oUT · · Score: 4, Funny

    wait 'til you see what M$ does with media.

    Can't wait for my first BSOD on a 42 inch plasma.

    --
    Some days it's just not worth
    chewing through my restraints.
  6. MS doesn't get it by MLCT · · Score: 2, Insightful

    We aren't interested in letting you become gatekeepers for our entire lives. Since you so very stupidly jettisoned playforsure neither are any media companies interested in you either, as that little case proved, your words and assurances are worthless - MS, you are a busted flush, now sod off and let some creative people on the stage who can actually make a difference.

  7. You've got a nice video business here, colonel. by AHuxley · · Score: 4, Funny

    We wouldn't want anything to happen to it.
    'Cos things memory leak, don't they?
    How many videos you got here, colonel?
    My chief technology officer and I have got a little proposition for you colonel.
    I mean you're doing all right here aren't you, colonel.
    The colonel doesn't think we're nice people, Nathan.
    We're your buddies, colonel.
    We can guarantee you that not a single movie will get peered over for fifteen K a week.

    --
    Domestic spying is now "Benign Information Gathering"
  8. Wait, isn't Howard Stern the King of all Media? by downix · · Score: 4, Funny

    For years the self-titled King of all Media has been Howard Stern. Does this mean Microsoft has decided on going after Howard?

    Now that would be a cage fight worth watching, Ballmer vs Stern! Let the Monkey Boy fights, begin!

    --
    Karma Whoring for Fun and Profit.
  9. ho ho ho by drinkypoo · · Score: 4, Funny

    Microsoft has been quite successful selling video downloads and online movie rentals through the Xbox Live service already. This seems a bit too much like the initial plan for MSN.

    I don't think Apple is worried yet. Nor is anyone else really.

    Too much like the initial plan for MSN? If this is as successful as MSN, then in five years we'll all be saying "Microsoft who?" I'm praying that it achieves fully MSN-like levels of success.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  10. Microsoft, out of touch with reality? by troll+-1 · · Score: 5, Insightful

    Allard sounds like Ballmer. Microsoft is still clinging the old media establishment ideology of 'content providers' who only get paid because you've DRMed their stuff.

    They still don't get the concept of an Internet.

    Anyone who's been following trends since Napster was shut down back in 2001 will understand we're undergoing a natural progression from centralized, controlled delivery systems to those where content is everywhere all at once.

    An obvious revenue model for this is one where advertising is embedded in content freely distributed over the Internet. After all, that's what worked for free broadcast TV and radio. It's the easiest and least restrictive method of raising revenue to pay for content. I doubt folks will be flocking to buy xboxes and zunes AND giving money to Microsoft so they can watch their favorite shows. Nothing to see here, move on.

  11. "Fail fast" == burn the users by vrmlguy · · Score: 5, Insightful
    A related article based on the same interview turned up this gem:

    When I spoke to Mr. Allard, he was up front about Microsoft's slow start. But he defended the approach of "fail fast" and learn. And in typical Microsoft fashion, he talked about the first generations of Zune as early moves in a long-term strategy. Yeah, the older Zune's can have their firmware upgraded, but try asking the people and companies who invested in 'plays for sure' what *they* think about fail-fast strategies. Fail-fast is just another word for moving R&D out of your budget and onto the shoulders of your customers. The bad news for you is, eventually they will wise up to their actual costs and migrate to new suppliers.
    --
    Nothing for 6-digit uids?
  12. Re:Wrong. by bigstrat2003 · · Score: 4, Insightful

    they make people pay _monthly_ to play games online. This is not "evil"; nor is it unusual. Actually, it is highly unusual, as typically games which don't have a persistent state don't charge for online play. Call of Duty 4, for example, is free to play online on every platform except the 360. That's bullshit, in my opinion. More infuriatingly, I'm led to believe that Microsoft doesn't even provide dedicated servers for the games, leaving it up to the developer to do so, or else having peer-hosted matches. If they're not providing servers for us to play on, what the fuck are we paying for? We're paying because Microsoft is in a position to make us. I use many Microsoft products, and am very happy with their quality, and am glad to be a Microsoft customer... but Xbox Live is a ridiculous situation. They will never get a dime from me to play games online which are free everywhere else.

    Worse still, this greedy approach is now entering PC gaming too. With a silver Live account, you can join games of Halo 2, but you need a gold account to host them. They're testing the waters, and I wager it's only a matter of time before Microsoft tries to shove paying-to-play down the throats of PC gamers too.

    --
    "16MB (fuck off, MiB fascists)" - The Mighty Buzzard
  13. Fat Chance by Anonymous Coward · · Score: 3, Insightful

    Microsoft has failed miserably when it comes to mobile media. i.e. My MP3 player (which can also do other things)
    Where is the Zune marketed? AFAIK, it is only in North America. It is certainly not sold on this side of the Pond.
    Even if (and thats highly unlikely) the XBOX became the 'defacto' HD viewing machine then it would be so riddled with DRM and 'Are you sure' stupidity then the hackers would have a field day 'making it work'.

    The notion that you MUST be connected to some Server on Planet Microsoft just to view a Film or episode of Heroes/insert fav TV series name here, is just plane crazy and totally idiotic.
    There are enough companies in this business who cold easily get together to thwart their plans. Then there are the regulators and governments who (despite receiving lots of dosh in brown paper envelopes) will get in their way.

    I'm moving soon to a place where even dial-up is impossible and if they think I'm going to run a satellite phone just so my kids can watch some HD TV programs then I would like some of what their marketing dept is smoking.
    (We will be using Radio to talk to our neighbours(on the next island). The nearest telephone exchange is over 100km away.)

  14. MS will fail by webmaster404 · · Score: 3, Insightful

    Five years ago, this would have worked. Now though with Vista failing more people are starting to see beyond MS, and 90% of people who use MS products (XBOX, Windows) don't switch to alternitives not for what MS has done, but third parties. Very few people when they see Office 2007 use that as their reason for keeping Windows, it is almost always a third-party app or game or second party in the case of Halo 3 (which was the reason most people I know bought a 360) but with many third parties now having applications on Linux and OS-X or via good support through WINE or similar programs, Microsoft is no longer needed, in 5-10 years I doubt that very many people will even use Windows unless NT 7 is much much much better then XP. Microsoft is losing the monopoly very fast with the relese of Vista, if the new "MS Media" doesn't work on Linux or Mac, it won't be used. The age of the MS monopoly is coming to an end finally, MS is just blind to it.

    --
    There is no "disagree" moderation, and troll, flamebait and overrated are not valid substitutes
    1. Re:MS will fail by bigstrat2003 · · Score: 2, Insightful

      second party in the case of Halo 3 Bungie is second-party now, they weren't at the time they made Halo 3.
      --
      "16MB (fuck off, MiB fascists)" - The Mighty Buzzard
  15. Re:Antitrust: the Movie by Captain+Vittles · · Score: 2

    Says the man whose email address references a Pauly Shore movie. ;D

  16. Has to be said by Lexor · · Score: 2, Funny

    Baba Booey !

    --
    Regards, Lex
  17. This Is Not The Future You Are Looking For... by His+Shadow · · Score: 2, Interesting
    Any world where Microsoft achieves these goals is not a world you want to live in. But thankfully we have Apple. Quicktime crushed Microsoft's aspirations for locking users into their what-will-we-call-it-this-year video format. The iPod and iTunes maintained the supremacy of MP3s over Microsoft's you'll-play-it-when-and-where-and-how-we-tell-you WMA hopes. And now the iPhone exposes WinCE on mobile phones as the miserable also ran it always was.


    Neither of the DRMed to death replacements for the DVD are especially compelling. But if one has to win, it has to be anything but HDDVD.


    Yes. The clear message is when it comes to digital content and control thereof, anything Microsoft is pushing is bad for consumers. But I would hope by now we wouldn't have to keep explaining why.

    --

    Fiat Homos et Pereat Theos

    1. Re:This Is Not The Future You Are Looking For... by Anonymous Coward · · Score: 3, Interesting

      Neither of the DRMed to death replacements for the DVD are especially compelling. But if one has to win, it has to be anything but HDDVD.
      Riiiiight. Just because Microsoft backs HD DVD, let's all just ignore the fact that Blu-ray:

      1) *Requires* the use of AACS DRM on all pressed discs, thereby increasing the already-hefty license fees indie filmmakers need to pay to produce BDs, hampering (for example) Creative Commons-licensed video delivery via BD, etc. Oh, and also let's ignore the fact that "burned" BDs won't work either... few players support them properly, and that number is *decreasing* with time as formerly-working players remove that functionality in a misguided attempt to halt piracy of commercial BDs. (Google 'PowerDVD 3319f', for just one example). Ever wonder why Amazon's CreateSpace site says that custom Blu-Ray production will be available "as soon as key technology issues are resolved" ? Those are some of the key issues. And they likely won't be resolved any time soon because they appear to be deliberate.

      2) Has a region coding system working and restricting legitimate disc imports *today*, whereas HD DVD is region free with only abstract plans that it *might* support RPC in the future.

      3) Is the only format to deploy the experimental BD+ DRM which requires running studio-provided executable code on your player before you're allowed to watch the movie.

      To say nothing of the fact that Blu-ray is backed primarily by Sony (who are certainly no better than Microsoft regarding DRM and consumer rights issues). Ever hear of cutting off your nose to spite your face?

      Any world where Microsoft achieves these goals is not a world you want to live in. But thankfully we have Apple.
      Oh never mind. I get it. You're just anti-Microsoft because you're pro-Apple. The rest of your comment is spot-on too: the iPod/iPhone/iTunes system is *clearly* the very model of an open platform and doesn't in any way, shape, or form try to profit from the same lock-in you're accusing Microsoft of. I mean that's why the iPhone has had officially-sanctioned third-party apps since day one, not just vague promises of an official SDK next year that only came after months of hackers breaking the device wide open. Right? /sarcasm

      Wake up and smell the coffee. Microsoft isn't the only threat. *Any* single company controlling too much of the media delivery landscape is bad news. People need to stop being "Consumers" and start being "Customers", demanding more for their hard-earned dollars/euros/etc., and above all ensuring that *no* company is free from competition.