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XBox (Games) The Internet

Microsoft's Big Bet on Online Gaming 351

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.""
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Microsoft's Big Bet on Online Gaming

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  • Um (Score:2, Interesting)

    by Asakusa ( 941025 ) on Friday December 30, 2005 @01:29PM (#14365516)

    I don't play games to escape anything. It's like saying "You build model boats to escape from society". That's utter bullshit. Hell, I'll go to a local computer gaming place to kick the crap out of all the people there in Counter Strike as a social interaction.

    Next time someone wants to tell me why I'm playing video games, tell it to my face.

  • Re:Um (Score:5, Interesting)

    by Alex P Keaton in da ( 882660 ) on Friday December 30, 2005 @01:34PM (#14365553) Homepage
    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 (Score:2, Interesting)

    by johneee ( 626549 ) on Friday December 30, 2005 @01:37PM (#14365580)
    Well, you have to look at who said that: Michael Pachter, an analyst with Wedbush Morgan Securities

    What the heck does a Securities analyst know about gaming? Looking at his comments, I'd say not a whole heck of a lot.
  • Re:Um (Score:5, Interesting)

    by nine-times ( 778537 ) <nine.times@gmail.com> on Friday December 30, 2005 @01:38PM (#14365591) Homepage
    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.

  • by tacokill ( 531275 ) on Friday December 30, 2005 @01:41PM (#14365614)
    I think I see what he is saying by the last sentence in the summary. I, too, have noticed a focus on "social interaction" stuff lately. Chat, messages, etc. While these are valuable for strategerizing and chatting with friends in the game, I don't go online to dink around and "chat" with strangers. Not to say that I don't talk to strangers -- I do. But I don't look to make new friends or anything and it seems like a lot of these services are aimed at linking people in a social way. As in -- meeting new people and making new friends.

    The difference is subtle but there. When I game, the chatting, etc is pertinent only for the game. If I want to meet new ppl or find a date, I go elsewhere. Taking my online gaming and trying to make it a "social interaction" *IS* the wrong approach.

    And I think that is what he is talking about here.
  • by neo ( 4625 ) on Friday December 30, 2005 @01:42PM (#14365623)
    This is the exact system that Microsoft wants to use for it's other applications. They want you to buy Word monthly, or yearly. They want you to pay for a service rather than "own" the program. Briliantly they are testing the idea in their lackluster gaming system before moving it over to their applications.

    Next you're going to see an application "Office 360" that replaces your computer desktop and only allows you to do your desktop job... one ap at a time.

    Brilliant.
  • by ShooterNeo ( 555040 ) on Friday December 30, 2005 @01:42PM (#14365625)
    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.
  • by BadassJesus ( 939844 ) on Friday December 30, 2005 @01:45PM (#14365645)
    "'At the end of the day, we don't play games for social interaction ..."

    I personally play ONLY games against/with real people like Counter-Strike multiplayer,
    single-player is not for me, playing against "bots" is a dead-end play, I never play single player games.
    Online gamming is the next logical step. Microsoft is on the right track.
  • Re:Social gaming... (Score:3, Interesting)

    by chill ( 34294 ) on Friday December 30, 2005 @02:04PM (#14365785) Journal
    How much max would you be prepared to pay for that service per month for your household?

    $100 per month if it includes the broadband ISP charges. $200 if it also included telephone and cable TV w/DVR capabilities.

    That's about what I'm paying now for cable TV, cable internet, 3 x X-Box Live accounts and VoIP thru Packet8.

    I'm investigating running my own TeamSpeak server and possibly dropping the X-Box Live accounts. America's Army is better on PC (Linux!) than X-Box. Call of Duty 2 is excellent on PC (Windows), and I'm not willing to shell out for an X-Box 360 when I already have the game on a PC.

      -Charles
  • Risk? Not really. (Score:2, Interesting)

    by llthomps ( 470748 ) on Friday December 30, 2005 @03:00PM (#14366151) Homepage
    Microsoft has never really been a company to take risks. They pump the totality into a market into they win. I guess you could say the Xbox & Xbox live was a risk if:

    A) The gaming market had not been established for almost 30 years beforehand.
    B) Microsoft wasn't 2nd in the market right now.

    To me the question isn't "who will win the gaming console battle" or "will Xbox live succeed". To me the question is really "whose vision will prevail in the home-computer-electronics-content merger" -- the players there being Sony, Microsoft, Apple, and the cable companies. Each having an upper hand in one area, but trying actively to get into the others.
  • Re:Time (Score:2, Interesting)

    by EnderWiggnz ( 39214 ) on Friday December 30, 2005 @03:04PM (#14366173)
    may i suggest "we love katamari" as a good title for you to try... simple to learn, and the longest time commitment is 20 minutes.

    none of these required sidequests where you have to go crossbreed giant racing chickens for months just to advance the game.
  • by Bellum Aeternus ( 891584 ) on Friday December 30, 2005 @03:08PM (#14366203)
    You mean 5 million?

    http://www.blizzard.com/press/051219.shtml [blizzard.com]

    In truth, that's only a drop in the bucket. There are 6 billion people in the world, (pulling numbers out of a hat here) 1/4 who could afford $15/month and about half of them are 'eligable' gamers. That means 750 million people are possible, future online gamers. 5 million is a drop in the bucket.

    Microsoft is defately going where the money is.

  • Having a good friends list on Xbox Live goes a LONG way toward taking care of this problem. I can spend a couple hours playing Perfct Dark Zero with a group of friends, enjoy the joking around and such that comes from talking to friends, all without having to deal with obnoxious little brats and cheaters. If I hadn't been able to put together a good friends list rather quickly, I suspect I would have let my 2 month Live trial expire and stopped playing on live. Instead, I've made a bunch of friends and can't imagine not gaming with them.

    And games that do it right - like Halo 2 - let you take a group of your friends into a game so you can take other groups of people. Even the annoying little brats aren't as bad when you're playing against them with a team full of friends - and beating the snot out of them.
  • Re:Um (Score:2, Interesting)

    by pnice ( 753704 ) on Friday December 30, 2005 @03:11PM (#14366218)
    That's what makes the new Xbox live pretty cool. We've downloaded a few easy to pick up and play games like Geometry Wars and, of all things, Spades. It does seem bad having this brand new system to play something like Spades on but it balances out between that and Call of Duty 2...plus DOA4 will help out as well.
  • Re:Um (Score:4, Interesting)

    by cayenne8 ( 626475 ) on Friday December 30, 2005 @03:30PM (#14366331) Homepage Journal
    "...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.

  • by _Sprocket_ ( 42527 ) on Friday December 30, 2005 @04:06PM (#14366573)
    After I kicked my Everquest habit a few years back, playing single-player games seems to be lacking something.

    It was sometime in the early 80's when I played two games regularly - Ultima III and Quest for Sorcery. Ultima III is easy enough to understand / look up. Quest for Sorcery was a multi-player text adventure ran on Major BBS systems (the system I played on had 8 lines). Quest had no stats - your ability to interact within the world (and even combat other players) was entirely based on your knowledge of how to use various objects and utter the right commands. Combat was not common but there was a competition to solve all the puzzles in the game.

    One day, after playing Quest for a good part of the week, I loaded up Ultima... and it was... flat. It had lost its magic. It just wasn't fun any more. And I suddenly realized why. The night before, I had been playing Quest and was working on one of the puzzles when the following text appeard on my screen:

    A strong gust of wind whips through the room.

    Simple. But the implications were very important. Someone in the game had just figured out how to do something new. And that was the catch - a world where other people affected your environment was somehow much more... interesting than the static world of single-player games.

    A side note to all this... I met Richard Garriot at a science fair that year. I noted to him how Ultima just wasn't as fun despite all its content and graphics. That a (relatively) simple text game had trumped it due to one very important aspect - muti-player environment. And, by the way, wouldn't it be cool if Ultima could be like that? Richard seemed to like the idea and invited me to call him at a later time... but I never did manage to get ahold of him again. Years later, and more likely due to natural progression rather than anything I said, Ultima Online made its debut.
  • by YesIAmAScript ( 886271 ) on Friday December 30, 2005 @05:05PM (#14366978)
    Honestly, there's just no way to make a machine as complex as a console anymore without being able to issue updates. Heck, even the launch GAMES are buggy as crap (PGR3 awarded me -250,000CR for winning a series just last night). So you're going to have to have online capability for the consoles. And you're going to have to be able to send out code over it.

    The stuff they did is just an extension of that. Once you can download code and content, why not put some stuff up for free publicity? Once you already sell "track packs" (see PGR2 on Xbox), why not sell entire micro games?

    You're gonna want to update the "BIOS" on the machine to thwart modchips anyway...

    All this came more by necessity than anything else, and so I fully expect you'll see similar stuff from Sony, who isn't otherwise known for being keen on online. Heck, they'll have to send out patches to fix their BluRay video player ability, since it's going to be just about the first one of its kind and complex as heck (it uses Java!).

    We also expect Nintendo is going to do this too, since they said the "Revolution will be infinitely backwards-compatible". They meant that it will play NES, SNES and N64 games. Well, it doesn't have 3 cartridge slots on it, so where will the game ROM images come from? Answer, they'll sell them to you again over the internet.

    It's just business in today's world. MS isn't really striking out much or taking much of a gamble.

It's a naive, domestic operating system without any breeding, but I think you'll be amused by its presumption.

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