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[Biker19]

I have to ask, did you watch the MS E3 presser last year or are you simply going off what you've heard?

Simply going off from what I heard.

C'mon man. You act like it's super easy to make a hit show that's worth a premium fee. Breaking Bad, by the way, doesn't count since it was on extended basic and doesn't require a premium content subscription to view. It was a great show, but not in the same market as House of Cards or other premium cable shows.

Not too late? Their delivery service is inferior to at least three competing services, two of which now offer original programming. Every premium cable channel offers their own direct-to-consumer streaming software. The XBL "ecosystem" includes Netflix and Hulu, by the way. A fact they were happy to point out at XBO's reveal as part of their multimedia strategy. If I have subs to either (or both), Xbox Video will be competing with them on the very same console. Not a very sound strategy.

There is more competition for consumers' dollars for premium shows now than there ever has been in the past. Microsoft missed the boat by several miles and this just smells of the same desperate "we can do that too" strategy they used (and failed with, repeatedly) under Ballmer's leadership. Shareholders are already pissed at Microsoft's recent issues. They took a heavy loss on Surface RT and Surface Pro, the new iterations of Surface are selling better but still not up to expectations, they just threw out a shitload of money to take full control of the Nokia/Windows Phone pipeline while Windows Phone continues to sell at a disappointing rate, and the Xbox One is somewhere between disappointment and disastrous. Where's the logic in throwing EVEN MORE more money into a crowded market space where, once again, all they have is the HOPE that it pays off?

I'm all for internet companies making TV shows, broadcast media had the opportunity to embrace the internet and control the programming but they chose to stick with the existing model, not because there was more money in it, just because it was easier money to make.

Now Netflix, Amazon, etc will eat their lunches by making shows and selling them straight to consumers AND make more money selling them back to broadcasters to go out on cable. I'd call that just desserts.

Which is why Sony saw the writing on the wall in which the battle for the living room was already over around in a very crowded market & designed the PS4 with gaming in mind first, & multimedia secondary, which was smart.

 

[EventHorizon]

The difference is I am arguing what they "could" choose to do. You were claiming "That isn't happening here" in no uncertain terms. I don't need to prove that this is what they are doing, because I haven't made any concrete claims that they are. You made very definite claims of the opposite.

You don't know anyone that purchases music from iTunes, but doesn't use iDevices? Fair enough, but I can tell you now, it's not at all uncommon. Deals like the timed exclusivity for albums like Watch the Throne or Beyonce's latest video album are designed to attract people to the service.. and it does work (I got in on Watch the Throne). If you don't know a single person using the service that doesn't also use iDevices, then that probably has a lot to do with how good a job it does drawing people towards the ecosystem at large.

I don't understand why you keep bringing up the $400-$500 console point. Nobody is going to do that exclusively for a TV show (especially not one which can be potentially viewed on other devices), but a strong implementation of the service tied to the platform can provide additional incentive over a similar device that lacks a decent implementation of the service (such as PlayStation). The initiative is also cushioned from relying purely on the sales of the console because it has other avenues available to recoup the investment. I don't see the problem here?

No what I did was to acknowledge a situation where Microsoft buying TV shows would not be an issue, and then went on to analyse the information actually provided in the article. Based on the info in the article, which is the only data we have, it is a bad idea. In fact even in the article it points out that people in Microsoft think it is a bad idea. The TV TV TV strategy was that of Steve Balmer and Don Mattrick who has since left the company. This is just a holdover from that era.

The reason why I mention that I don't know anyone who uses iTunes without a device is not to say that iTunes makes people buy and Apple device, but that Apple devices make people use iTunes in order to manage them. That is of course just my personal observation not scientific data, but it informs my opinion of iTunes used independently as a selling point for Apple devices. I just don't see that happen and in fact I see the opposite where people feel that they have to use iTunes but really don't want to.

I bring up the $400-$500 cost to point out what you acknowledge, that people aren't going to spend that money just to watch a TV show. You then go on to argue that the TV shows provide an incentive to buy the consoles while at the same time saying that the shows could be watched anywhere with a browser. Ok that might provide some incentive but not much. FYI, the PS4 has an HTML5 browser. All of which gets me back to my original point that buying TV shows is a bad idea and that the money could be better used elsewhere to promote the Xbox.

 

[Banderdash]

I approve of these news.
interesting documentaries related to the gaming side of this world (example the dig for the burried E.T. games) is something I probably would care to watch, if done nicely.

just make sure your content works globally microsoft! yes, I mean for tier 3542 countries too!

I'd really love it if they did a version of the 'All Your History Are Belong To Us' series that was on Youtube... until Machinima ran it into the ground.

 

[Imperfected]

Here is the whole article, since I didn't it posted anywhere in the thread.

Woof. I actually don't think making TV shows would be a bad way of spending advertising money or doing cross-department promotions with Entertainment, but reading it in the context of, "These other companies are all trying to do this thing with middling success already, and now Microsoft is chasing them" certainly isn't flattering.

I can't say I've ever been fond of the results when Microsoft plays "last to the party" with the other major US corporations, 360 aside.

 

[Synth]

No what I did was to acknowledge a situation where Microsoft buying TV shows would not be an issue, and then went on to analyse the information actually provided in the article. Based on the info in the article, which is the only data we have, it is a bad idea. In fact even in the article it points out that people in Microsoft think it is a bad idea. The TV TV TV strategy was that of Steve Balmer and Don Mattrick who has since left the company. This is just a holdover from that era.

The reason why I mention that I don't know anyone who uses iTunes without a device is not to say that iTunes makes people buy and Apple device, but that Apple devices make people use iTunes in order to manage them. That is of course just my personal observation not scientific data, but it informs my opinion of iTunes used independently as a selling point for Apple devices. I just don't see that happen and in fact I see the opposite where people feel that they have to use iTunes but really don't want to.

I bring up the $400-$500 cost to point out what you acknowledge, that people aren't going to spend that money just to watch a TV show. You then go on to argue that the TV shows provide an incentive to buy the consoles while at the same time saying that the shows could be watched anywhere with a browser. Ok that might provide some incentive but not much. FYI, the PS4 has an HTML5 browser. All of which gets me back to my original point that buying TV shows is a bad idea and that the money could be better used elsewhere to promote the Xbox.

It's a technicality I guess but "That isn't what's happening" is not the same as "That doesn't appear to be what's happening". One is an observation based on the information at hand, the other is a definitive statement which would actually require you to know. I asked "how do you know that?", and the answer is simply you don't. Anything else I typed were reasons why it may not be the case. Unless all these reasons can be deemed false (which they currently can't be) then you can't claim that they're definitely not on the track to attempting to emulate Netflix or Wuaki.

I know plenty of people that use the iTunes player to playback the music they listen to. This is one of the reasons why it is so common to see other services allow you to import your songs and playlists from iTunes, as many non iDevice owners still have all their shit organised through it.

I'm not claiming that it would be a huge incentive to purchase the console (and I don't believe the article does either), but any incentive at all allows it to satisfy the criteria of it being used to "broaden the appeal of the console beyond videogame devotees". They've already made a few other pushes towards this, such as Xbox Fitness, and the upcoming universal apps. You state that the money could be much better used elsewhere.. would you mind giving me a few examples? And please don't say more games, because that doesn't help expand "beyond videogame devotees", and also hasn't been getting Nintendo anywhere lately.

 

[Shining Sunshine]

They should make it like Kutaragi's way, where CEOs are plotting against each other in some political drama.

 

[badcrumble]

I'd rather see them spending money to produce original content than just buying the exclusivity of things that'd already be produced, and I'm happy to see anything that pushes cord-cutting forward, so this is good news to me.

 

[Barkley's Justice]

with $499 price tag and $60 subscription, I don't think it's going mainstream.

Yea, I mean, I'm not sure what their angle is here. If they're smart about it, they'll release apps for all platforms which would at least strengthen the marketing of their brand (aka "Xbox Video"). In much the same way there are Kindle apps for iOS.

 

[Biker19]

But Destiny is going to be on Xbox One as well. Those people don't have to go anywhere.

I know right, posters like him have convinced themselves Destiny isn't available anywhere but PS4.

If your a fan of Halo you'll get to play both Halo and Destiny on Xbox One. The additional content isn't big enough to miss out on Halo if your a fan of the series.

I actually think despite all of Sony's co-marketing, Destiny will end up doing better on Xbone, especially from an attach rate standpoint. MS fans know who Bungie is, im not so sure Sony fans do. Will be hilarious if that month's NPD shows higher sales for Destiny on Xbone.

While hardcore gamers already know that Destiny is also on Xbox One, the average consumers don't. That's where the marketing comes into play. They don't look up or read gaming sites or gaming news like this like we do.

It's like Microsoft's advertising with Call of Duty in making them think that those games are exclusive to 360 when they're not.

 

[Penguins&PolarBears]

I love the attitude of "yeah Sony is doing this too, but at least they have the decency to not talk about it." Always a great business strategy to not promote the content you invest in.

Everyone is making their own streaming content now: Sony, Yahoo, Amazon, Netflix, Hulu, HBO, Microsoft. Exclusive video sells subscriptions. It's not just about selling a console, subscriptions equal reliable annual revenue, it is a bargaining chip for other "networks" content, plus a way to keep customers tied to your service or console. I believe the plan is to release content first on Xbox Live with exclusive features and then sell later to other video services. Audience reach is not an issue. Xbox Live has about 50 million active users, and second run releases could expand that reach exponentially to other VoD services.

 

[Memorabilia]

Joke post?

 

[Synth]

Joke post?

which?

 

[Lynn616]

No one is going to pay $500 and $60 a year to watch TV shows....

Good thing for MS that the Xbox does games and media as well.

While hardcore gamers already know that Destiny is also on Xbox One, the average consumers don't. That's where the marketing comes into play. They don't look up or read gaming sites or gaming news like this like we do.

It's like Microsoft's advertising with Call of Duty in making them think that those games are exclusive to 360 when they're not.

I dont know anyone that doesnt know that Call of Duty is on Playstation. You will also have trouble finding many that will not know that Destiny is also on the Xbox.

 

[Linkified]

This could be a means to an end to have a better implementation of Xbox Live Primetime, have those interactive games with prizes on the line and bulk out the rest of the schedule with shows/movies/shorts to fill in the bulk around it.

Now if they are reportedly going to be moving Apps from behind the paywall this as a replacement for incentive to keep subbed would probably be A-OK.

 

[Chettlar]

What "agenda?" Please don't start some shit. I just made a mistake.

It demonstrates your supreme, willfull ignorance. You want to prove that MS is all TVTVTV over games, so you hastily try to find stuff that supports that and don't even check your own proof.

That, my friend, is called bad quality posting.

 

[Memorabilia]

Simply going off from what I heard.





Which is why Sony saw the writing on the wall in which the battle for the living room was already over around in a very crowded market & designed the PS4 with gaming in mind first, & multimedia secondary, which was smart.

Yep, pretty much. Sorry, MS but I couldnt give a rat's ass about "value added features" on a game console. A $75 Roku does what I need and does it better while using way less electricity. I buy game consoles to play games. I use my Xbones to play Titanfall. Period. Kinect gathers dust, as expected. And if anyone in Redmond thinks I'm going to pony up extra $$$ for a soccer or Atari documentary they are smoking some good shit. Just give us exclusive games.

 

[Memorabilia]

which?

The OP. I see now this is apparently serious.... Good Lord.

 

[Biker19]

It demonstrates your supreme, willfull ignorance. You want to prove that MS is all TVTVTV over games, so you hastily try to find stuff that supports that and don't even check your own proof.

That, my friend, is called bad quality posting.

You're getting all on me for this when other posters in this very thread have done the same thing, yet you don't call them out on it.

Hypocritical.

 

[Marcel]

I'd rather see them spending money to produce original content than just buying the exclusivity of things that'd already be produced, and I'm happy to see anything that pushes cord-cutting forward, so this is good news to me.

Cord cutting might grow but not as a result of Microsoft and the Comcast-TWC merger is only going to complicate matters further. Microsoft is barely a player on this bigger stage and will not motivate any real movement past keeping people content-full on their own closed-off platform, which of course requires you to buy internet from somebody that might include Comcast.

 

[Hassan99]

I absolutely have no problem with this direction MS is taking the Xbox brand, its partially why I bought the X1. I'm 8 years older now with a wife and kids, I don't play video games on my consoles exclusively anymore.

 

[Synth]

You're getting all on me for this when other posters in this very thread have done the same thing, yet you don't call them out on it.

Hypocritical.

They'll probably get called out in some other thread, after they've establish a track record comparable to that of your own.

 

[Monty Mole]

Every man and his dog seems to be commissioning original content right now, especially scripted stuff. All kinds of cable channels - even smaller ones - along with on-demand services like Netflix and Amazon. Throw Playstation/Xbox in there and it's getting even crazier.

On one hand, competition is great as it means more quality content than ever before. But on the other, it also means subscribing to an insane amount of different services and operators to see it all without resorting to being naughty.

 

[Chettlar]

I actually think despite all of Sony's comarketing, Destiny will end up doing better on Xbone, especially from an attach rate standpoint. MS fans know who Bungie is, im not so sure Sony fans do. Will be hilarious if that month's NPD shows higher sales for Destiny on Xbone.

There's a bunch of 360 owners that switched over to PS4 this gen, though, so it may not be that simple.

 

[Biker19]

They'll probably get called out in some other thread, after they've establish a track record comparable to that of your own.

OK, then don't ever let me see some skeletons in yours or everyone else's closets, because I'll do the same thing to them just like y'all did to me.

 

[Marcel]

Every man and his dog seems to be commissioning original content right now, especially scripted stuff. All kinds of cable channels - even smaller ones - along with on-demand services like Netflix and Amazon. Throw Playstation/Xbox in there and it's getting even crazier.

On one hand, competition is great as it means more quality content than ever before. But on the other, it also means subscribing to an insane amount of different services and operators to see it all without resorting to being naughty.

The dirty not-such-a-secret is that lots of people don't even bother paying. It's easier than ever to pirate stuff with no real blowback.

 

[Memorabilia]

I love the attitude of "yeah Sony is doing this too, but at least they have the decency to not talk about it." Always a great business strategy to not promote the content you invest in.

Everyone is making their own streaming content now: Sony, Yahoo, Amazon, Netflix, Hulu, HBO, Microsoft. Exclusive video sells subscriptions. It's not just about selling a console, subscriptions equal reliable annual revenue, it is a bargaining chip for other "networks" content, plus a way to keep customers tied to your service or console. I believe the plan is to release content first on Xbox Live with exclusive features and then sell later to other video services. Audience reach is not an issue. Xbox Live has about 50 million active users, and second run releases could expand that reach exponentially to other VoD services.

This is a fair point. However, there is a wide chasm between original content like House of Cards vs. original content like an Atari doc...and a commensurate difference between the ability of the services to draw subscribers.

I also think its worth considering that if MS really wants to jump in this market, its already becoming awfully crowded (as you noted) with a lot of services vying for consumer dollars. How many services can the market support? I have friends who wont even consider looking at Redbox, for example, bc they already have Netflix and its what they are used to, so in their minds why bother switching, especially when the prices are similar and the content on Redbox is limited by comparison. I'm skeptical at best about MS's plan here. Their "we can do that too!" approach to nearly everything has serious weaknesses, usually that they are late to market in an area that is already saturated. Consumers only have so much disposable income to spend in any one area.

 

[Wiktor]

They've shown their true intentions last year. Anyone who falls for it again has only themselves to blame.

Considering Sony is the same I guess it leaves only Nintendo?

 

[gtrunner]

Didn't they already try this with the 360? The shows didn't even air because they were seen as too graphic. One was about you high school friends meeting at a gang bang. I can't remember who was interviewed about it. They had a script but it was canned before they started shooting.

 

[ItIsOkBro]

How many people are really gonna get an XB1 since now it'll have original TV?

 

[Chettlar]

Simply going off from what I heard.

That is a bad thing to do. Stop taking other people's opinions for yourself and go watch or at least read an article about the conferences of each company before talking bout them mockingly. It makes you look really dumb.

You're getting all on me for this when other posters in this very thread have done the same thing, yet you don't call them out on it.

Hypocritical.

I had a thing to say about what you've been doing. I haven't called others out (in this thread, mind you. In other threads I do) because others already have gotten called out with everything I had to say.

That's not "hypocritical" even if I was doing that. If I were, it would be more me being eager to jump on one particular person, which I'm not. Just how things happen.

Try not to get a "everybody's attacking me!" attitude. The reason people attack you is because you simply have bad posting quality. You post about stuff you are supremely ignorant in, and you shouldn't do it.

I've posted about some other things that I was ignorant in and got called out on it. I had nobody but myself to blame.

 

[Synth]

OK, then don't ever let me see some skeletons in yours or everyone else's closets, because I'll do the same thing to them just like y'all did to me.

That's cool. I try to make an effort not to jump into endless threads about products and companies I can't stand, just to tell everyone continuously how much I hate them and everything they stand for. If this ever changes, be sure to put me back in check. You'd be doing me a favour.

 

[Bessy67]

How many people are really gonna get an XB1 since now it'll have original TV?

As has been said multiple times in this thread already, it'll most likely be a part of Xbox Video which you can access from your web browser. No console required.

 

[ItIsOkBro]

As has been said multiple times in this thread already, it'll most likely be a part of Xbox Video which you can access from your web browser. No console required.

And that broadens the appeal of the console...I don't see how.

 

[rakkadakka]

I enjoyed the Forward Unto Dawn.

Pretty good stuff.

 

[Lynn616]

That's cool. I try to make an effort not to jump into endless threads about products and companies I can't stand, just to tell everyone continuously how much I hate them and everything they stand for. If this ever changes, be sure to put me back in check. You'd be doing me a favour.

Ouch but deserved.

 

[Biker19]

That is a bad thing to do. Stop taking other people's opinions for yourself and go watch or at least read an article about the conferences of each company before talking bout them mockingly. It makes you look really dumb.

I know. Everyone's human & we all make mistakes.

I had a thing to say about what you've been doing. I haven't called others out (in this thread, mind you. In other threads I do) because others already have gotten called out with everything I had to say.

That's not "hypocritical" even if I was doing that. If I were, it would be more me being eager to jump on one particular person, which I'm not. Just how things happen.

Try not to get a "everybody's attacking me!" attitude. The reason people attack you is because you simply have bad posting quality. You post about stuff you are supremely ignorant in, and you shouldn't do it.

I've posted about some other things that I was ignorant in and got called out on it. I had nobody but myself to blame.

While true, I never judged people for their opinions, or attack them for it. It just makes me pissed off when you or everyone else do it to me.

Lately, I've been posting on what Microsoft should do & what they should not do. Why is that bad posting quality?

 

[Chettlar]

Kids and lifestyle entertainment (KALE) are a Microsoft studio who have said they're working in something along those lines. (I'll get a link in a minute)

It won't be 1vs100 specifically as there were license issues I think

Perhaps we will see more at e3

Show me this link you speak of, pls!

Simply going off from what I heard.

That is a bad thing to do. Stop taking other people's opinions for yourself and go watch or at least read an article about the conferences of each company before talking bout them mockingly. It makes you look really dumb.

 

[Cthulhu_Steev]

I know. Everyone's human & we all make mistakes.



While true, I never judged people for their opinions, or attack them for it.

Lately, I've been posting on what Microsoft should do & what they should not do. Why is that bad posting quality?

I think you bumped a few heads in here because you made an incorrect assumption about what MS showed at E3, they did focus on games but you went with 'I heard they didn't'.

 

[Chettlar]

I know. Everyone's human & we all make mistakes.



While true, I never judged people for their opinions, or attack them. Lately, I've been posting on what Microsoft should do & what they should not do. Why is that bad posting quality?

Because it's done out of ignorance for one thing. You basically want MS to become Sony, and that's simply not going to happen.

Listen, as a guy who absolutely loves criticism when I'm working on a project, the way you go about it is really off-putting. If I were Microsoft and said "Hey, we want to give you guys a ton of games, as well as TV shows and a bunch of other stuff because we realize most gamers don't just do games." And then you say "You're just doing TVTVTV!!!" Do you think I'm going to listen to your criticism? If I'm MS, I'm doing games. I'm making lots of games. When you criticize me with stuff that isn't necessarily accurate and obviously from a perspective that is biased against me, I simply don't see the point in listening to you, because you don't care about what I want to do. I've got this cool vision where we do all sorts of things for our fans. Why should I listen to you? Why when you don't even care to listen to what I'm doing?

Being accepting of criticism requires a lot of humility. It requires the ability to say "hey, maybe you have a point there." But giving criticism requires the same thing. You have to be willing to say "Hey Microsoft, maybe you have a point there." Before I criticize Nintendo for making games that for the most part just don't appeal to me, I have to say "Hey, Nintendo, maybe I'm just not a part of your vision. Maybe my criticism isn't valid because if I had my way I'd make you into Valve or Microsoft or 2K, and that would take you away from your fans."

 

[jhmtehgamr20xx]

Sony is doing the same thing MS just pushing it more. You want them cancel all their TV plans

They're not pushing it the right way. IPTV is the way to go and Sony has the jump on them in that regard.

 

[RoyalLaFlame]

Because it's done out of ignorance for one thing. You basically want MS to become Sony, and that's simply not going to happen.

Listen, as a guy who absolutely loves criticism when I'm working on a project, the way you go about it is really off-putting. If I were Microsoft and said "Hey, we want to give you guys a ton of games, as well as TV shows and a bunch of other stuff because we realize most gamers don't just do games." And then you say "You're just doing TVTVTV!!!" Do you think I'm going to listen to your criticism? If I'm MS, I'm doing games. I'm making lots of games. When you criticize me with stuff that isn't necessarily accurate and obviously from a perspective that is biased against me, I simply don't see the point in listening to you, because you don't care about what I want to do. I've got this cool vision where we do all sorts of things for our fans. Why should I listen to you? Why when you don't even care to listen to what I'm doing?

Being accepting of criticism requires a lot of humility. It requires the ability to say "hey, maybe you have a point there." But giving criticism requires the same thing. You have to be willing to say "Hey Microsoft, maybe you have a point there." Before I criticize Nintendo for making games that for the most part just don't appeal to me, I have to say "Hey, Nintendo, maybe I'm just not a part of your vision. Maybe my criticism isn't valid because if I had my way I'd make you into Valve or Microsoft or 2K, and that would take you away from your fans."

Loved this comment Chettlar. Really great stuff and I agree with everything.

 

[SPDIF]

They're not pushing it the right way. IPTV is the way to go and Sony has the jump on them in that regard.

MS tried IPTV long ago. Didn't turn out too well for them.

 

[Memorabilia]

How many people are really gonna get an XB1 since now it'll have original TV?

I'd guess not a whole lot, primarily because its $500. The "all-in-one" concept doesn't really work, but it keeps resurfacing in one form or another. The main problem is when it comes to streaming content Xbone is competing against devices like Roku which cost well under $100. Only a relatively small % of consumers who want to watch streaming movies care about all the extra stuff an Xbone can do, so when they see a Roku in Costco for $79 that plays "Netflix w/original content" vs. an Xbone which also plays Netflix and may or may not give you some exclusive Xbox content I'd say 99% of average buyers will choose the Roku, no matter how special that Xbone content might be eventually (and it'd need to be a lot more special than soccer documentaries to get anything beyond a passing glance). The vast majority of cable TV/movie watchers are non-gamers who simply dont care about anything extra the Xbone can do, so the major price difference is a huge barrier.

Meanwhile, gamers want games on their game consoles. All this extra stuff is fine as long as it doesnt cause MS to lose focus on games. Considering how badly their launch went and how confused their messaging has been on just what exactly their vision is for Xbone moving forward, it seems to me they should be worrying about delivering to their core audience rather than trying to bring in movie/TV/NFL watchers who already have other devices for those tasks.

 

[jhmtehgamr20xx]

MS tried IPTV long ago. Didn't turn out too well for them.

The market was different then and the technology was obviously not up to par. Now that things have improved dramatically, it's a very viable option, especially if they went a la carte.

I just don't want anybody focusing it all on the cable side of things; cable will lose popularity (tho thanks to stuff like net neutrality being killed, they may not wither off so quickly anymore. Damn FCC).

--snip--

<This is the correct answer. >

It really is.

 

[Biker19]

That's cool. I try to make an effort not to jump into endless threads about products and companies I can't stand, just to tell everyone continuously how much I hate them and everything they stand for. If this ever changes, be sure to put me back in check. You'd be doing me a favour.

Ouch but deserved.

I don't know, I'm just...so angry. Maybe I have gotten out of line with what I've posted.

 

[blakep267]

If ms can give me content like what g4 had back in the day( cinema tech ,judgement day) if be overly happy. Probably won't happen though.

 

[Synth]

I'd guess not a whole lot, primarily because its $500. The "all-in-one" concept doesn't really work, but it keeps resurfacing in one form or another. The main problem is when it comes to streaming content Xbone is competing against devices like Roku which cost well under $100. Only a relatively small % of consumers who want to watch streaming movies care about all the extra stuff an Xbone can do, so when they see a Roku in Costco for $79 that plays "Netflix w/original content" vs. an Xbone which also plays Netflix and may or may not give you some exclusive Xbox content I'd say 99% of average buyers will choose the Roku, no matter how special that Xbone content might be eventually (and it'd need to be a lot more special than soccer documentaries to get anything beyond a passing glance). The vast majority of cable TV/movie watchers are non-gamers who simply dont care about anything extra the Xbone can do, so the major price difference is a huge barrier.

Meanwhile, gamers want games on their game consoles. All this extra stuff is fine as long as it doesnt cause MS to lose focus on games. Considering how badly their launch went and how confused their messaging has been on just what exactly their vision is for Xbone moving forward, it seems to me they should be worrying about delivering to their core audience rather than trying to bring in movie/TV/NFL watchers who already have other devices for those tasks.

Although I kinda agree with what you're saying as it stands today. The X1 isn't always going to be a $500 machine. I think establishing the other entertainment pillars it can use to appeal to non-gamers makes sense to do prior to it hitting the price points where these users would likely jump in. If you wait until the box is $200 before trying to expand its focus, then it won't have enough compelling content to lure in other buyers before the box dies off and the next gen rolls around.

They should be aiming to ensure the Xbox's OS is fucking fantastic. Cortana needs to be integrated to improve speech interaction. Universal Apps must be ready to go, with plenty created to cover popular apps that casuals are used to finding in other app stores. Xbox Fitness needs to significantly expand its offerings to include the full range of workouts from each trainer. Media streaming functionality needs to be up to par, with background audio and DLNA working flawlessly. And Xbox Music and Video need reasons for people to look at them over other similar services.

All these things will take time, but if they are all handled correctly, when the console reaches a $200 pricepoint it suddenly stops making sense to purchase single solution alternatives instead of simply buying an Xbox and killing a flock of birds with one boulder. If they wait until that pricepoint is reached before taking action, then it will be too late to position it against other services (and Apple will probably have entered and done it instead anyway).

As of right now there doesn't seem to be any real reason for concern over receiving games. They're making plenty and third-parties are making plenty. They can't just infinitely keep pouring money into making more and more first party games... at some point the costs would stop seeing a worthwhile return (Sega style).