Four Years Later, Xbox Exec Admits How Microsoft Screwed Up Disc Resale Plan (arstechnica.com)

An anonymous reader quotes a report from Ars Technica: We're now approaching the four-year anniversary of Microsoft's rollout (and subsequent reversal) of a controversial plan to let game publishers limit resale of used, disc-based games. Looking back on that time recently, Microsoft Corporate Vice President for Windows and Devices Yusuf Mehdi acknowledged how that rollout fell flat and discussed how hard it was for the firm to change course even in light of fan complaints at the time. In a blog post on LinkedIn posted last weekend, Mehdi writes: "With our initial announcement of Xbox One and our desire to deliver breakthroughs in gaming and entertainment, the team made a few key decisions regarding connectivity requirements and how games would be purchased that didn't land well with fans. While the intent was good -- we imagined a new set of benefits such as easier roaming, family sharing and new ways to try and buy games, we didn't deliver what our fans wanted. We heard their feedback, and while it required great technical work, we changed Xbox One to work the same way as Xbox 360 for how our customers could play, share, lend, and resell games. This experience was such a powerful reminder that we must always do the right thing for our customers, and since we've made that commitment to our Xbox fans, we've never looked back." It's an interesting reflection in light of an interview Mehdi gave to Ars Technica at E3 2013, when the executive defended Microsoft's announced plans for Xbox One game licensing. Mehdi, then serving as Xbox chief marketing and strategy officer, stressed at the time that "this is a big change, consumers don't always love change, and there's a lot of education we have to provide to make sure that people understand... We're trying to do something pretty big in terms of moving the industry forward for console gaming into the digital world. We believe the digital world is the future, and we believe digital is better."

Comments

I'll never forget it...

[ausekilis]

MS had this long drawn out "you can do this but not that" speech that took minutes to explain.

Sony says "here's how you lend your friend a game with Playstation" and hands a box to his friend.

It didn't even take 10 seconds for Sony to eat MS's lunch there.

And then there was Kinect

[Kohath]

If that was their only problem, they could have recovered more easily. But they also had:
- $100 higher price to cover the cost of Kinect -- a device few wanted
- the TV stuff and the Snap interface so you could split-screen TV and gaming -- providing a poor TV-watching experience and a poor gaming experience simultaneously
- a giant box that looked like a VCR with a big external power brick
- somewhat worse performance than the PS4 because of the speed of the RAM interface

It's difficult to dig yourself out of a hole that deep.

Designed from the Ground Up for Ads, Not Games

[Kunedog]

- $100 higher price to cover the cost of Kinect -- a device few wanted

What do you mean nobody wanted a microphone and HD camera focused 24/7 on their living room or bedroom (or kid's bedroom)?

It was also intended as a platform to force-feed ads, first and foremost:
http://www.sticktwiddlers.com/...

So what about the future of advertising on the Xbox One? “It’s going to be an exciting transition though because the 360 console wasn’t built with advertising in mind, it was more of an afterthought, so we’ve had to adapt to the technology and how we work to fit them in to the console,” said Technical Account Manager for Xbox LIVE Advertising, “whereas this new one is going to have advertising in mind. So a lot of the limitations that we have now, hopefully the release of the boundaries will widened so the opportunities will be a lot greater.”

http://hothardware.com/news/mi...

The Xbox is developing native advertising, where ad content is displayed alongside relevant material, either embedded in search results, promoted on a network like Facebook, or a "Liked X? You'll Love Y!" style of marketing. Not to worry, though -- the company plans to use Kinect to make these advertisements even more engaging than their current counterparts. In the future, Kinect may offer you a "Choose Your Own Adventure" style narrative in which you speak commands or give orders to an ad as its playing to change the final outcome.

The other way the company wants to use Kinect is to monitor what's going on in the living room to serve you group-appropriate content, rather than resorting to the plain old method of bombarding you with non-interactive advertising for things you don't care about. Microsoft claims that the demographic data the ad team can access is very limited, but it's hard not to see shadows of the same patent for movie licensing that the company applied for last year.

That was never the issue with DRM

[LeftCoastThinker]

"...we imagined a new set of benefits such as easier roaming, family sharing and new ways to try and buy games..."

OK, fine, but thats not what people were pissed about, and you know it. There is no rational explanation for DRM (aka digital non-rights) to prevent resale. You want to digitally revolutionize and save money on distribution and make things more convenient for your customers? Fine, but give me a button in my Xbone UI that says "release rights" or some such or better yet, an online marketplace to resell digital content I no longer want. Why should I give up the fundamental right of resale on my $2000 plus library of games just because the original seller saved $7 on not having to sell me a physical disc, case and manual? Hell, digital should give me more rights or a discount, like the right to rent my copy out to others when I'm not using it.

This was a straight up money grab by MS and the developers, and the consumer bitch slapped you down because there was real meaningful competition. Own it and move on.