Microsoft trying to save face after Xbox backlash

When it comes to hyping next-generation hardware, the video game industry doesn't typically opt for simplicity. However, during a presentation at the GameStop Expo in Las Vegas to promote the upcoming Xbox One console last week, a no-frills, old-school approach is exactly what Microsoft employed when confronted with a convention room full of passionate gamers.

There were no flashy videos, sensationaldemonstrations or celebrity appearances. Instead, Xbox Live programming director Larry "Major Nelson" Hryb candidly took questions on stage from the crowd for 30 uninterrupted minutes, a refreshing reprieve considering the backlash Microsoft has continued to endure since unveiling the Xbox One in May.

"Look, at Xbox, we really care about the community," Hryb replied when asked point-blank how Microsoft would win back consumers. "We're very focused on what is right for gamers. Everybody at Xbox is a gamer. It's not like we just show up, do our work and go home. We want to make this the best game system that you are going to own for the next 10 years."

The presentation was apparently the first stop of an apology tour for Microsoft, which originally said the successor to the Xbox 360 would be required to go online every 24 hours and limit how users could access previously purchased games. A month later, citing feedback from consumers, Microsoft announced it decided not to implement such restrictions.

Microsoft's atypical about-face continued last month when the Redmond-based company declared that an updated version of its Kinect sensor, which detects motion and voice, would no longer be required to operate the Xbox One. That turnabout came after the company, at events like the Electronic Entertainment Expo, defended how integral Kinect was to the Xbox One.

Hryb said he'll embark on a cross-country tour this month, making stops in US cities to similarly assuage concerns about the next-gen console - just like he did at last week's GameStop Expo. The 180-degree reversals and low-key repentance are unprecedented moves for a company like Microsoft, which once hired Cirque du Soleil to theatrically unmask the first Kinect.

Microsoft announced this week that the Xbox One will debut November 22 - a week after Sony unleashes its PlayStation 4 console on November 14. The PS4 will cost $399 and feature comparable computing power, high-definition graphics and online features to the Xbox One. Microsoft's console is pricier at $499, but the system comes bundled with a Kinect sensor.

"I've pretty much made up my mind that I'm getting a PS4 and not an Xbox," said Jeff Lane, a gamer from Reno, Nev., who paid $100 for VIP access to the GameStop Expo. "I know Microsoft has changed course on a lot of their unfounded policies since they announced the Xbox One, but what's to stop them from just implementing them next year after the console is out?"

The worries come at an important time for the gaming industry, which has seen sales slide in recent years as Microsoft's 7-year-old Xbox 360 and Sony's 6-year-old PlayStation 3 have entered their golden years. The arrival of Nintendo's Wii U last year didn't invigorate game sales, which research firm NPD Group said have dropped 9% over last year.

"Education is job one," said GameStop CEO Paul Raines at last week's event, which primarily served as the training grounds for the retailer's 5,000 managers. "We have thousands of people in classrooms upstairs receiving training on the Xbox One and others on the PS4. We're trying to arm our staff on how these devices will be different and how they'll work."

Raines said GameStop expects this fall's debut of the PS4 and Xbox One to make for the biggest console launch in history, while Microsoft announced that pre-orders for the third-generation Xbox have sold out faster than both the original Xbox and Xbox 360, which was released in 2005 and has been the best-selling console for the past two years.

No doubt Microsoft could use a boost to its bottom line in the coming months. The company's stock fell this week after announcing it was spending $7.2 billion to buy Finnish smartphone maker Nokia in an effort to better compete in the hot mobile market. And Microsoft absorbed a $900 million charge in its last quarter to account for the flop of its Surface tablet, which runs a version of its Windows operating system.

David Wesley, author of "Innovation and Marketing in the Video Game Industry," believes Microsoft is headed in the right direction with its refocused Xbox One strategy. Wesley and other analysts don't expect the fallout from this year's botched unveiling of the Xbox One to ultimately affect sales or the public's perception of the console this holiday season.

"The reality is these concerns likely won't affect Microsoft's marketing of the Xbox One," said Wesley. "The challenge for Microsoft is conveying the value of the console without overhyping aspects that don't really meet expectations. They don't want to create such high expectations that people are letdown when the console is actually launched.
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PS4 priced $100 cheaper than Xbox One

Sony on Monday gave video-game fanatics their first look at the PlayStation 4 - and it's a rectangular black box, just like all the previous PlayStations.

That may disappoint gamers who were hoping the PS4 would be a floating white sphere. But, more important, the PS4 will cost $399 - $100 less than Microsoft's upcoming Xbox One.

"The gaming landscape is changing with new business models and new ways to play," said Andrew House, president and CEO of Sony Computer Entertainment.

That wasn't the only shot fired at Microsoft during Sony's presentation at the Electronic Entertainment Expo, the gambling industry's annual U.S. trade show. The loudest applause at the company's event show came when Jack Tretton, president and CEO of Sony Computer Entertainment America, announced that the company would not try to restrict used game sales. Tretton also said the PS4 would not require a persistent online connection.

"PlayStation 4 disc-based games don't need to be connected online to play or any type of authentication," said Tretton. "If you enjoy playing single-player games offline, PS4 won't require to you check in online period and it won't stop working if you haven't authenticated in 24 hours."

Microsoft has been criticized for its vague statements about whether it will allow buyers of its Xbox One to play secondhand software, as well as its requirement that the new console be connected to the Internet at least once every 24 hours.

Beyond those issues, Sony gave potential PS4 buyers plenty of games to look forward to. The company's Santa Monica Studios, the developer of the "God of War" franchise, introduced the steampunk thriller "The Order: 1866." Quantic Dream, the French studio behind "Heavy Rain" and the upcoming "Beyond: Two Souls," provided a comical glimpse at the fantasy "The Dark Sorceror."

Shu Yoshida, president of Sony Worldwide Studios, says the company's studios have more than 30 PS4 games in development, including 12 brand new intellectual properties.

Sony also showed new footage from previously announced PS4 games like the superhero adventure "InFamous: Second Son," the auto racing simulator "Drive Club" and the military shooter "Killzone: Shadow Fall."

Several third-party developers also debuted next-generation titles at Sony's event. Bungie, the creator of the blockbuster Xbox series "Halo," showed the first in-game footage of its highly anticipated first-person shooter "Destiny." Warner Bros. showed a clip from a new "Mad Max" game, while Square-Enix announced the long-awaited "Kingdom Hearts III" and "Final Fantasy XV." Overall, Tretton said, more than 140 PS4 titles are in the pipeline.

Xbox One not coming to India, other Asian markets until 2014: Report

Microsoft launched Xbox One recently carrying a price tag of US $499/ £429/ AUD$599/ 499 Euro (approximately Rs. 29,300). While the release came with the announcement that the console will go for sale in 21 countries in November this year, the list did not contain any countries in Asia.

Now, The Wall Street Journal is reporting that Asian gamers will have to wait for another year, as the console will enter the Asian market only in late 2014, a year after its launch in other regions. Even in Asia, the console will be available initially only in select markets including Taiwan, Hong Kong, Singapore, South Korea and India. However, there's no clarity of markets such as Japan and Korea.

Answering that apprehension Famitsu reported that Microsoft confirmed an Xbox release in Japan but without mentioning any prospective date. A Microsoft representative told the website that "Microsoft plans to release Xbox One as new-gen all-in-one system in Japan. Release date and more details will be announced at an appropriate time."

Alan Bowman, Microsoft's regional vice president for sales and marketing in Asia told WSJ that this year, Xbox was the topmost selling gaming console in Asia. He also stated that the possible delay was because the company wanted to give Asian users a 'great experience' by including elements such as localised content. The report also stated that Microsoft admits that content licensing issues will surely be challenging.

We believe adding to that, the fact that Xbox works as an entertainment centre with television support will also add its own hurdles with television having different standards in Asia.

With Sony also unveiling the PlayStation 4, the success of the two consoles would partially depend on pricing and availability. With Sony already trumping Microsoft on the price front by pricing the PS4 a full 100 dollars cheaper, Microsoft could've at least done with being available in all markets on launch. Having said that, Sony is yet to share any kind of availability details about the PlayStation 4, other than saying its coming this holiday season, so one doesn't know yet how exactly this will play out.

The Xbox One comes with a 500GB hard drive, an 8-core Jaguar CPU, 8GB RAM, a Blu-ray player, built-in Wi-Fi, the new Kinect and the Xbox One Wireless Controller. With the Xbox One, Microsoft has aimed at creating a living room solution integrating gaming with entertainment. However, the restrictiveused games policy and the heavy dependence on the Internet has been quite a let down for most gamers.