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Jesse Schell: Listening to customers was Microsoft's big mistake

SmokedMeat

Gamer™
I'm utterly confused by your post. Are you saying Wal-Mart, Best Buy, Gamestop, Amazon, and Target don't have deals for physical copies of games? Can you rephrase?

I'm saying they already offer the option to buy digital downloads, and they don't bother competing on price at all. They don't put digital games on sale ever. It's not going to change because of Xbone.
 

Nethaniah

Member
Yes Live costs me 40 bucks a year MAYBE. But unlike Steam which is just a platform for games Xbox is an ecosystem. They make tons more exclusives than Valve they make new hardware they bring apps to Xbox. HBO Go is STILL exclusive to Xbox. I guarantee XBL money plays a part in that.

I'm fine with paying for XBL or PSN. Its an investment in the device and the ecosystem.

A PC gamer might not realize that since you can just open a web browser or download any program.

It's great that you're fine with that but lot's of people (me included) think it's insane that you are REQUIRED to pay extra (MP fee let's call it) in order to even play most games coming out nowadays, you can't justify it with a ''hbo app'' or ''pizza hut app'' it just makes you look like you're in denial that you're getting screwed, you're paying for something that should be free.

I guess i could comment on the exclusives but my consoles have been collecting dust for years so.
 

Loofy

Member
Steam was the better option on PC. I mean when I bought a Diablo 3 physical copy I put it in the computer, waited for it to install, then waited even longer for the internet update. No one huddles around their monitor for local multiplayer gaming so having portable copies doesnt matter as much. Going digital in the first place just makes more sense on PC.
Consoles on the other hand are pretty much throw in and play(apart from some PS3 games with long ass installs and day 1 updates). Sure alot of people want steam on consoles, the vast majority of people would like an option for both.
 

KageMaru

Member
How are ANY of these things you've listed system sellers to a casual audience? What is your pitch?

"You're not necessarily interested in Killzone or God of War but I want you to buy our box. It's $399, but doesn't include our camera or motion control devices, those you have to buy seperately. You can buy PS+ for $50 a year which lets you rent games for free but only months after they come out. It also has free games which you've probably already downloaded on your computer if you were remotely interested in them. And it has all the same indie games you've played on your laptop or iPad!"

I'm just saying, the PS4 is a great games box. But it has almost nothing going for it with the casual market, which will hurt it's prospects outside of "hardcore" gamers.

Nib95 will spin anything so it's a positive for the PS4, but I don't necessarily think the "hardcore" image of the PS4 will really hurt it much. The casual audience isn't typically the type to get new consoles early in the generation. So even if the Xbone has more appeal to the casual audience, it's unlikely it would be much of a benefit this early in the generation. If you didn't notice, MS also pushed the Xbone as a hardcore console at E3.

Casuals matter, but hardly at the beginning of a generation.
 
From the very start of the XB1 reveal, it's been one of the worst PR disasters, ever, in gaming history. Microsoft could have sold everything they had prior to the "180" if they handled it a lot better in the PR department, but they left consumers in the dark, did not focus on the consumer while mentioning their product, Phil Harrison opening his mouth, and a conglomerate of other things.
 

vg260

Member
So you're telling me that despite offering digital downloads they suddenly can't be like Steam because they're not controlling our physical purchases? This makes no sense. Want to be like Steam? Then be Steam, and put on all of these great digital sales.

Neither Sony nor MS can be another Steam as long as the physical disc model is in place. You can't expect them to be with the current retail system. MS does have big digital sales already, but they can't reach the same level of Steam discounts with a hybrid model.
 

Metal B

Member
Again many people miss the point of Schell' message, it isn't that Xbox One DRM was a good idea, it is about how you handle change as a grounded company in a market. His point of Steam and Xbox One was in quotes. He tries to say that Microsoft thought, they created something like Steam.

A good example of smart change is Sony introducing an fee for there online-functions. They first gave away free games without any drawback, now they slowly place in a small fee and most people don't mind it. In the future there could be a higher fee, but also more games to play, which the people don't own and have to be played through a stream or another possibility. All this can be seamless change over time, thanks to a smart start.
 

joeblow

Member
Steam is strictly a service. XBone is a hardware device. Apples to apples is to compare a PC to the XBone and it is then that we can see that a PC'er has options for retail games and digital only games that includes Steam. The XBone was not going to allow other digital services for online competition with sales, and no retail games. It has always been a foul comparison.

The problem for Microsoft, Schell explains, is that while the subsequent outcry came from a relatively small section of the gaming audience, it is nevertheless impossible to ignore.
Doesn't matter if the outcry on message boards was from a "small section" of the audience. The scoreboard was black and white - the XBone was getting creamed in pre-order sales. That was no small section of protesters by any stretch.

"The problem is that the hardcore folks always want the same thing: 'We want exactly what you gave us before, but it has to be completely different.'

A} It wasn't just the hardcore turning their back on the XBone (see the point above), and B} he needs to quote them accurately:

"We want exactly what you gave us before, but it has to be completely better."

Fixed.
 
I'm saying they already offer the option to buy digital downloads, and they don't bother competing on price at all. They don't put digital games on sale ever. It's not going to change because of Xbone.

Again, this doesn't matter because there's a ton of other places you can buy games which all compete with one another (brick & mortar stores and Amazon). MS could have their digital games at full price, MSRP, forever, for eternity, and it wouldn't matter because the consumer has a litany of other options to purchase their games from, who all compete with one another.
 

Shard

XBLAnnoyance
No, Microsoft thinking they could dictate terms in a world where they don't rule all and competition is fierce was their mistake, Microsoft has been backpedling on many of thier policies of evil because Sony exists and has been pre-kicking their asses.
 

Dio

Banned
I'm saying they already offer the option to buy digital downloads, and they don't bother competing on price at all. They don't put digital games on sale ever. It's not going to change because of Xbone.

Amazon doesn't sell XBLA game codes. At all.

We are no longer selling Xbox LIVE arcade game codes on Amazon.com. Customers can continue to purchase Xbox LIVE points on Amazon.com and those points can be redeemed through their Xbox consoles to purchase any of the games that were previously available.
 
So here's a question. Why is it that everyone compares themselves to Valve and/or Steam everytime they want to enforce some shady practice? A few months ago we had cliffyb say that Valve and EA are basically the same except Valve has better PR, now this guy (among others) says that the canned Xbox system was "just like Steam".

Both me and Brad Pitt have two arms, two legs and a penis. That doesn't mean that I'm "just like Brad Pitt".
 

Oshimai

Member
The leaked insider rumor suggested that MS actually wanted to go towards Steam direction and that they were just really bad at putting the message out there.

Who was the source/what website? Regardless, judging from the actual information released during the reveal conference and E3, it was obvious that xbone resembled very little to Steam.
 

Durante

Member
So here's a question. Why is it that everyone compares themselves to Valve and/or Steam everytime they want to enforce some shady practice? A few months ago we had cliffyb say that Valve and EA are basically the same except Valve has better PR, now this guy (among others) says that the canned Xbox system was "just like Steam".

Both me and Brad Pitt have two arms, two legs and a penis. That doesn't mean that I'm "just like Brad Pitt".
The Brad Pitt comparison also works to answer the question: all these companies want to be Brad Pitt. Or at least look like him from a distance.
 

Marleyman

Banned
No, Microsoft thinking they could dictate terms in a world where they don't rule all and competition is fierce was their mistake, Microsoft has been backpedling on many of thier policies of evil because Sony exists and has been pre-kicking their asses.

Sony didn't try this due to their financial situation IMO. This will happen in some way; just not this generation. MS had an opportunity to implement something cool but botched it due to a coherent message and ridiculous restrictions. I just don't get why they couldn't have got rid of what made the original idea shitty and kept the rest. Scrapping it altogether was a bad move.
 
I didn't want what Microsoft had to offer but I kind of agree here since what I'm asking the most is more choice.

Having Microsoft not changing anything could have hurt them at first but at least they would have a solid community clearly supporting their vision. It's what I'm trying to do while supporting Nintendo even if there is not a lot of games on Wii U yet and even if they clearly fuc*ed their launch and almost the year they had in advance.

Now it's also my fault in a way because I posted here to explain why I didn't find what they had to offer a good thing. They just should have take into account with a lot more importance their core audience inputs.

Anyway it's not like they really changed everything, they can switch on all these features whenever they want so we may end with a very good generation.

Just make your choice and shut up :p (aka we don't care if you just want Nintendo to be like Sony or Microsoft to be like Sony or Sony to be like Nintendo etc.).

It takes balls to push change or just to keep faith in the quality of what you have to offer when a lot of backslash is coming. Do it Microsoft, do it Nintendo. You'll please some gamers and maybe a better community than the ones who are just asking for something and just don't care at the end because they won't buy your system anyway.
 
The only place the Steam comparison is more directly valid is if you're discussing with someone who says "consumer rights, ownership, and resale" are super important to them. So if they happen to buy a ton of games on Steam (or iOS), while complaining about losing consumer rights on Xbox One then that is a somewhat hypocritical stance.

Even if they say "but Steam/iOS games only cost $1-$10!", that just means that "consumer rights" isn't the issue, but value is. Which is totally fine, and something I agree with.

So if someone is comparing Xbox One and Steam from the standpoint of which has more value, then obviously Steam is way ahead of the game, and there's mostly no comparison (though I tend to think that the market would've eventually forced Xbox One to develop a better value, since $60 games seem unsustainable). If someone is comparing Xbox One and Steam from a "consumer rights" standpoint, then there's a much closer comparison to be made, since both have "DRM" to some extent (Yes, I know Steam has a better offline mode due to no 24hr check...but it currently doesn't support transferring licenses/resale of games like Xbox One would have because of that 24hr check)
 

Maledict

Member
The notion it was just hardcore gamers in uproar is nonsense and needs to be put to bed.

My father, who doesn't own or play a console, knew about it and thought it was one of the craziest and most stupid ideas he'd heard of - god knows where from.

My sister, whose 360 has been connected to the Internet *once*, knew about it and has pre-ordered a PS4. She's definitely a hardcore gamer though - 6 years of playing WoW and she almost has a max level character!

The reversal wasn't caused by a few loudmouths, in the same way that Mass Effect 3s new ending wasnt caused by a few loudmouths. Companies don't spend time and money changing things if its just a few people, and they don't make these decisions based on a few bad articles in the press. They make the decision off hard numbers, and that's why MS changed course. When someone who has only ever owned a 360 and hasn't ever contemplated a playstation puts money down for a PS4 you have a real issue - like one of the guys who works for me did.
 
I don't understand. If you want to go exclusively digital on Xbox One, what's stopping you?

The only difference now is the people who still like buying physical aren't getting screwed over.
 

BigDug13

Member
Besides the ability to sell your Xbox One game and the 24 hour check-in it was almost exactly like Steam.

You say it like the 24 hr checkin was some minor and inconsequential thing. It was one of the main problems with the entire system.

As a prior military member who would spend 6 months at a time gaming with no Internet, it was a pretty big deal. Steam lets me do it, XBO wasn't.
 
Microsoft most certainly didn't backpedal because they listened to the outcries on gaming forums, but because they listened to pre order numbers.
 

Odrion

Banned
Just heavily support the Xbone and hope that Sony falls out of the console business. Then you'll get the true Microsoft vision.
 
My sister, whose 360 has been connected to the Internet *once*, knew about it and has pre-ordered a PS4. She's definitely a hardcore gamer though - 6 years of playing WoW and she almost has a max level character!

Though I do agree MS made the right decision to keep with traditional console policies, I have to admit that I find it somewhat ironic someone who pays $15 a month for 6 years ($1080!) on a single always online game would complain about having to connect a system to the internet :p
 
Jesse Schell makes the mistake of thinking Xbox One DRM was anything like steam.

I will never repeat the mistake of reading anything written by Jesse Schell again.
 
Though I do agree MS made the right decision to keep with traditional console policies, I have to admit that I find it somewhat ironic someone who pays $15 a month for 6 years ($1080!) on a single always online game would complain about having to connect a system to the internet :p

World of Warcraft transcends all logic!
 

BigDug13

Member
Though I do agree MS made the right decision to keep with traditional console policies, I have to admit that I find it somewhat ironic someone who pays $15 a month for 6 years ($1080!) on a single always online game would complain about having to connect a system to the internet :p

Well this is why sub games are failing and everything MMO is moving to F2P. Casual gamers looked at their credit card statements and felt $15 per month for a game you only casually play is not worth it.
 

Marleyman

Banned
I don't understand. If you want to go exclusively digital on Xbox One, what's stopping you?

The only difference is the people who still like buying physical aren't getting screwed over now.

Nothing; the only thing that you can't do now is the ability to tie your games to your account to play them anywhere and sharing digital downloads w/ friends. I really wanted those features but yeah, not happening now.
 

Maledict

Member
Though I do agree MS made the right decision to keep with traditional console policies, I have to admit that I find it somewhat ironic someone who pays $15 a month for 6 years ($1080!) on a single always online game would complain about having to connect a system to the internet :p

Heh, I thought the same until she explained her current situation meant it was easy for her PC to be hooked up but not the 360. Also in her case it was more the mandatory kinect. Odd coming from the land of CCTV, but everyone I have spoken too in the UK really objected to the idea of kinect.
 
Not being able trade, resell, borrow or rent games sounds like being screwed over to me. I still would like the option to do all those.

I was referring to having physical copies of their games. MS also had some trade-in program looming. But yeah if you were a big renter for example you'd be screwed.
 
Again, this doesn't matter because there's a ton of other places you can buy games which all compete with one another (brick & mortar stores and Amazon). MS could have their digital games at full price, MSRP, forever, for eternity, and it wouldn't matter because the consumer has a litany of other options to purchase their games from, who all compete with one another.

Let's try this another way:

Premise: The primary motivation for price drops on retail games is inventory risks/costs

Premise: There are no inventory risks/costs associated with digital goods

Conclusion: Because retailers have no risks/costs associated with digital goods, they have no motivation to drop the price

This conclusion is pretty well supported by worldly experience (retailers don't drop the price on digital goods, even if the corresponding physical game is cheaper).
 
uh, listening to customers concerns while crafting your policy should have been the plan. Have a forward thinking policy while taking care of the hardcore. They should have known the backlash to a 24 hour check-in far ahead of time, and should have crafted a policy that was much more lenient.
 
I was referring to having physical copies of their games. MS also had some trade-in program looming.

The physical copy is worthless after installing the game.

Might as well throw it out, it's as good as trash.*


*Unless you go to participating retailers like GameStop and trade your game in for 5 dollars!
 
The thing with half these comments from industry people is that they always rely on an overly simplistic analogy with Steam and fail to see that what brought that 180 wasn't a single thing but an accumulation of details that painted a bleak future where your games and anything you wanted to do with them was in the hands of MS. Some of these details are shared with Steam but some definitely aren't.

The fact all these smart people ignore the differences gives me the impression they're disingenuous in their argument. Because I can't imagine they'd be blind or stupid enough to not get the differences.
 
uh, listening to customers concerns while crafting your policy should have been the plan. Have a forward thinking policy while taking care of the hardcore. They should have known the backlash to a 24 hour check-in far ahead of time, and should have crafted a policy that was much more lenient.


The non hardcore would have been the majority of customers getting screwed over.

These are the people who lend out games, rent games, and trade in games the most.
 

Gannd

Banned
You still had physical stores to compete with because the disk were nothing more then license and data holders.

So you bought either the cheapest version be it from the xbox live store or from some online web shop that will ship you the physical copy. And both would act as the digital version because the license was tied to your account. So the digital store had to compete with gamestop, amazon and others. The last few xbl sales where pretty good not steam sales good tbh.

After linking the game you could throw away the disks and theres a bigger chance that later on X1 and ps4 will be emulated because of the generic hardware both console are using.



GameStop, Best Buy and Walmart will not allow digital prices to be less than their physical price. One reason why PC DD competes so well is that there isn't really a physical retail space for PC games anymore. That used to hold Steam back. The problem is we have a lot of gamers that just discovered Steam in the last couple years after Valve got it to be awesome because Gamestop and other brick and mortar retailers gave up on PC games.

It is nothing like Steam. Microsoft has no track record and cannot compete without physical retail the way PC games can.
 

diffusionx

Gold Member
I wish Microsoft dropped the disc check and eliminated resale entirely. Make an offline mode for the military people (and it can be half-assed like Steam's too) and that's it. The problem is they didn't want to piss off GameStop too much, because GameStop moves a lot of hardware and accessories for them.

You compare Apple to Microsoft and Apple since the mid-1990s was not afraid of pissing off anybody if they felt it served their vision. MS is a company of half-steps and it shows.
 
I think Jelle Shell, a man involved in game design, is mistaking psychology for market value.

firstly, It's a console. It's values are nothing like the values that could (and did) work for PC's and Steam in particular. I never felt that Steam was forced on me beyond the scope what is convenient for both myself as well as for the companies involved. ALSO I didn't think Valve's primairy interest for the platform was to control ME or what I (can) do.

I do not feel the same way about EA's Origin and I will not go into bussiness with that offer. Similar system, same platform, no dice. The platform stays in one place, is always connected to the internet (aside from irregularities), and yet the offer doesn't work.

What MS was suggesting in the console space, with very different existing values as well as 'things that I could want from this product', was that I could play what they would 'allow me'. Which is not an offer at all, it's pointing a gun at someone and telling them to like it. Nobody likes that, if that even needed pointing out.


Secondly: Microsoft's main problem is that their offer is a goddamn mess. "TV! VIDEO! GAMES.. SORTA!". I am an experienced and relatively informed gamer and I have no idea what the fuck they want to offer in terms of value to me. In fact, I don't believe they offer anything at all. Tv? I can watch that on a Wii U, and look how that's selling. Or not selling, to be blunt. Video? I mean, seriously? any device on earth will do that. games? same shit, different console. (even bringing back Killer Instinct as a tool... how futuristic! )

I know that they probably took time to think and thought "look at that value!" during board meeting, but the truth is that they don't offer anything worthwhile at all, given their multiple control schemes (like the mess with Wii U....) of which one is the forced Kinect, which gets Hi-fucking-larious when combined with the PRISM leak.

"Listening to the customer" was an act of desperation, not a "mistake" on their part. Why? because they have no real offer and they know it.

/ rant

( I mean: kicking out the Xbox dvision head after presenting the offer? Or actually presenting the offer when you know you're leaving? I mean, reaaaally? How was that not going to look bad to the audience? -yes, my whole world consists of nothing more than consoles and nothing more, but I do think that any type of marketing planning was either ignored or thrown out in this case. Certainly knowing how tight MS is on marketing)

PS: too offtopic?
 
Let's try this another way:

Premise: The primary motivation for price drops on retail games is inventory risks/costs

Premise: There are no inventory risks/costs associated with digital goods

Conclusion: Because retailers have no risks/costs associated with digital goods, they have no motivation to drop the price

This conclusion is pretty well supported by worldly experience (retailers don't drop the price on digital goods, even if the corresponding physical game is cheaper).
Retailers would have been selling PHYSICAL copies of the games, not digital. I don't understand how this is difficult to grasp. They would have been selling a game case + disc + manual, just like it's always been, just like retail PC games. I feel weird defending MS like this but the no competition bullet-point is just stupid.
 
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