“Deeply flawed”: research firm slams Microsoft’s entertainment strategy

Monday, 17th June 2013 11:29 GMT By Dave Cook

Microsoft’s entertainment strategy has been called “deeply flawed” by Interactive entertainment research firm DFC, and the group has stated that the future of Microsoft’s entertainment business hangs in the balance based on last week’s Xbox One campaign.

During its Video Games Market report, the DFC said of Microsoft’s recent approach to its entertainment business, “Microsoft’s overall strategy for entertainment devices is deeply flawed,” and added that last week’s furore over Xbox One’s online check-ins, anti-used policies and more have tipped the scales in Sony’s favour. THe group has now raised PS4 sales projections ahead of Xbox One.

In a statement the DFC’s David Cole said, “So far this has not had a major negative impact on the Xbox business but that is likely to change with the Xbox One launch. Right now the entire future of Microsoft’s consumer entertainment business is in question and that is likely to have a major impact on the game industry.”

Will you buy an Xbox One regardless of these current issues? In a recent opinion piece Brenna has suggested that yes, you will. What do you think?

Thanks MCV



  1. Bam007

    Already have mine pre-ordered. Just waiting for more information on games at launch as I am looking to get all launch titles, minus anything for Kinect.

    #1 2 years ago
  2. machy

    the whole world knows that they need to change things or .. mean while at MS ”THIS THE FUTURE”"

    #2 2 years ago
  3. orakaa

    Their strategy is deeply flawed?

    #3 2 years ago
  4. Bomba Luigi

    Microsoft Strategy is genius and works very, very good. They want us to buy PS4 and it works.

    #4 2 years ago
  5. Yoshi

    ‘Microsoft’s entertainment business ‘ Nope, they’ve got a shit tonne of money to waste so if anything it’ll make them lose some spare change. Somewhat quite a bit of spare change when it comes to the licensing deals which cost a shit tonne but still, it’s spare change to MS.

    #5 2 years ago
  6. manamana

    After Zune, Surface, Windows 8 and Windows phone, I see Microsofts Xbox-Brand on a downtrend. Ballmer must go.

    #6 2 years ago
  7. zme-ul

    you don’t need a research firm to see how bonkers MS “vision” is

    #7 2 years ago
  8. MFBB

    I keep wondering why they actually did that (all the restrictions etc).

    The only thing I can come up with is pirating.

    Thos restrictions try to stop pirating, make it harder.

    But that is it.

    All the Kinect/social media/sharing stuff dosnt matter.
    Works just as fine without the restrictions.

    If someone wants to share/communicate/watch streams etc he goes online and does so.

    #8 2 years ago
  9. Greek God

    #4Bomba Luigi


    #9 2 years ago
  10. mistermogul

    @6 – What do you mean? Ballmer is a great CEO. Calm, collected, intelligent, inspiring and not at all embarrassing…

    #10 2 years ago
  11. zme-ul

    MS wants XB1 to be the console that turns a product into a license
    because with a licence, they can revoke it at any time without having to answer to anyone

    #11 2 years ago
  12. Telepathic.Geometry

    Holy fuck mister mogul, what have you just shown me? Why am I now blind? :D

    That was super-fuckin’ weak! ;_;

    #12 2 years ago
  13. mistermogul

    @12 – lol. Sorry my friend, you will never quite be the same ever again!

    #13 2 years ago
  14. ps3fanboy

    micro$haft is trying to kill the gaming hobby we love with drm and not let people own the games they buy. sony and nintendo ain’t doing any of this shit, that micro$haft is doing. it speaks a ton… if you liked xbox360 you have been had, micro$haft have crapped all over you as a gamer and customer. it is maybe hard for some of you to admit, you have put money on the wrong horse. after being 6+ years with micro$haft, but it is not your fault it is micro$haft. they don’t care about gaming and have become the greed it self. this is not what gaming is about. so i welcome you all xbots to buy a ps4. but if you still buy a xbone after what have happen. you are retarded, there is no excuse. no one support something that is made to kill of what you love, gaming.

    #14 2 years ago
  15. Digital Bamboo

    The most active gamer I know IRL, who has played almost exclusively on 360 for the majority of this gen, just posted a photo on FB showing that he has pre-ordered a PS4.

    This guy has a solid internet connnection, tons of free time, & money to burn. If guys like him are passing on Xbox One, MS may indeed be in trouble.

    #15 2 years ago
  16. Pytox

    @10 omg LOL

    #16 2 years ago
  17. Clupula

    @10 – He played college ball, son.

    #17 2 years ago
  18. polygem

    i hope they will pay the price for this shit. i really really do.

    #18 2 years ago
  19. backup

    PC and xbots gamers = loser

    #19 2 years ago
  20. The_Red

    MS is pretty much being the Sony of 2006. It’s really strange how they’ve both changed. Last time around, Sony was humiliated via the gamer friendly 360 and learned a hard lesson.

    Hopefully PS4 does to X1 what 360 did to PS3 so the MS can learn and be better. I know Sony isn’t exactly messiah but they are being a 100 times better than 2006 / Ken Age.

    #20 2 years ago
  21. MCTJim

    I find it amusing that it is so easy for “experts” to sit on the sidelines and criticize. It doesn’t matter if it MS, Sony or Ritz crackers. People are going to buy what they want anyways. If Sony dominates..fine..if MS comes out on is what it is

    #21 2 years ago
  22. Cobra951

    Since the story asked (again) I will answer (again): NO, I will never buy this thing as long as I have to ask permission online to use any part of it. And since you mentioned it, Brenna’s opinion piece seems deliberately inflammatory, and was not welcome.

    #22 2 years ago
  23. karma

    Xbox is dead in the water at this point. No way they can turn it around. They’ve locked themselves in technically and politically and nothing they can say or do will change the outcome now. Sony won, by a huge margin, simply because they listened to what gamers want.

    Microsoft on the other hand have finally shown us, without a doubt, that their vision for gaming is not inline with the majority of the core gaming audience. Xbox has no future, so no, I won’t be getting an xbone come next gen.

    #23 2 years ago
  24. manamana

    @10&12 :-D superb!

    #24 2 years ago
  25. manamana

    @15 yep, make that two.

    #25 2 years ago
  26. manamana

    @23 you definitely underestimate the masses and overestimate the power of internet/forumists/gamenewssites. They will get a beating but they are still on track. (Unlike Ballmer, he seems to be on crack, lol)

    #26 2 years ago
  27. grizzlycake

    @You kind of underestimate the power of word of mouth I’d say.

    #27 2 years ago
  28. Eon

    Funnily enough I don’t know anyone personally who’s getting a PS4. I was quite surprised to hear my friends (mainly PS fans, some Xbox), all intend on buying the X1 over the next year, skipping the PS4 entirely. Some of the games/features have piqued their interest whilst the other issues don’t seem to have bothered them. Certainly gong to be an interesting console cycle, a lot of mixed/extremist opinions on the X1 at the moment.

    I’m currently on to get an X1, I’ve always preferred the Xbox and prefer the look of the games coming to the new console. I think that’s still a big factor with people, brand loyalty. You invest in storys, characters, worlds exclusive to a system. I’m not invested enough in Sonys franchises, so it’s less likely to affect me if I don’t buy the PS4. It works both ways. I had Uncharted: DF and God of War 3, so I may end up with a PS4 one day, no doubt.

    I’m still waiting to hear a bit more from both companies regarding this generation though before I make a true decision.

    #28 2 years ago
  29. Lord Gremlin

    I’ve always wanted MS out of gaming industry. They’re cancerous growth.

    Now, I expect xbone to tank and fail. Windows 8 is horrible piece of garbage and it failed harder than Vista in terms of sales/profit. Microsoft Surface failed horrible in that department too. Call me a Prophet, I predict Xbone will got he way of Win 8 and Surface.

    #29 2 years ago
  30. salarta

    @8: I see multiple reasons for why Microsoft has all these restrictions in place, and they’re all atrocious and based in greedy corporate bullshit.

    They want to “kill” piracy and used games as a meaningful market, something that publishers, mostly when it comes to really shitty games, use as an excuse for poor sales.

    They want to change the concept of ownership from “pay once and you own it” to “pay once and you get a license that can be revoked or lose its value at any time.”

    They don’t like paying for Blu-Ray, which Sony has a part in, so trying to force a model where you download the whole game to your hard drive is an attempt to move all games to digital so they can hopefully later ditch the Blu-Ray player.

    They want to have the power to control pricing to their benefit, both for the right to put games on the marketplace and for consumers buying the games themselves. In addition to this, they want to force indies to partner with a publisher that can make demands of them, since indies are not allowed to self-publish. I’m willing to bet in this regard, Microsoft will “graciously” offer to be the publisher for some indies… if they get a cut of the profit and can dictate terms of presence on XBox Live.

    I don’t see a single positive thing about the scheme Microsoft is trying to pull here. Microsoft thinks consumers are idiots that will buy anything as long as there’s enough shiny things to distract them from the glaringly obvious flaws, and I’ll be very disappointed for the state society has found itself in if Microsoft turns out to be right and people really don’t have standards anymore.

    #30 2 years ago
  31. DSB

    @6 Spot on.

    At this point the only way to avoid a disastrous launch is to tell people that they know they fucked up, and that they will be breaking their backs trying to fix it.

    Then again, if you look at Sony last gen, I had the exact same feeling. They were fumbling left and right, and while they weren’t testing peoples rights as consumers, they just had no clue where that generation was going, and they sure as hell didn’t want to admit their mistakes.

    Not only did I not want the console, but I also didn’t want to benefit a company that didn’t want to help itself. Nothing really seemed to change until those teenagers hacked their network.

    So I dunno, maybe Microsoft are gonna commit to this charge of the light brigade to the point where they get hit so hard they have no choice but to wake up and turn around.

    #31 2 years ago
  32. polygem

    @28: “I think that’s still a big factor with people, brand loyalty. You invest in storys, characters, worlds exclusive to a system.”

    see and that´s exactly why so many xbox gamers (me included) are so mad about them. because after all these years of supporting and indeed “investing!” in xbox all they have for you now is a huge slap in the face.

    i wont buy it. i think i wont even buy it if they´ll fix a lot of the issues. they just crossed the line and cannot be trusted. they hurt gaming. i really believe that´s how it is. supporting them is not an option for me anymore no matter how good the games are. this isn´t only about xbox one anymore, it is about the shape of games to come.

    #32 2 years ago
  33. orakaa

    @28: “I think that’s still a big factor with people, brand loyalty”

    *looks at WiiU sales figures*
    Yeah, right… I think we should not overestimate the “power” of loyalty when it comes to consumers. Nintendo did the same mistake as Microsoft, thinking all they had to do was put a “Nintendo” name on the box and it would sell. Microsoft also did the same with Surface, thinking that the “Windows” label would make the Surface sell and they are doing the same with Xbox One, thinking fanboys will accept ANYTHING and that mainstream won’t even bother looking at the “details”.

    Consumers will look at the price. with $100 (price difference with PS4) you could almost buy two games (nowadays, $100 is the price I pay for 3 games). They will go for the cheapest option if they have to pick one. And however you want to put it, PS4 is almost the same machine as Microsoft, at the exception of a few exclusives (that might not even remain exclusives, like Titanfall).
    And that’s without listing all faults of Xbox One

    #33 2 years ago
  34. Eon

    @32: “i wont buy it. i think i wont even buy it if they´ll fix a lot of the issues. they just crossed the line and cannot be trusted.”

    Yeah, I can totally see where you’re coming from. I think it affects some people more than others, no doubt it affects a huge portion of their existing user base. I don’t have too much issue with most of the things they’ve said so far though. My internet is fine for always online. Price point is steep but I’d be getting a kinect at some point if it was sold separately anyway, so it balances out for me. The used game stuff is something they still need to clear up more and probably the only issue I have with it. Although, my main problem is just with the way they’ve tackled it, all of their responses are so ambiguous.

    I’m used to hearing multiple contrasting responses to tough question from big corporations but you’d think they would’ve been a bit smarter with all the attention that surrounds them around this time of year.

    I probably won’t know where my money is going for another few months. I think both MS and Sony screwed up. MS had the potential to blow us away but screwed it with their strange terms and regulations, Sony had a chance to really sell the PS3 as the console to go for but resorted to promoting features that existed on previous generations (used games etc). Both companies need their heads banging together.

    #34 2 years ago
  35. salarta

    @33: On the one hand, I agree that we shouldn’t overestimate brand loyalty. On the other hand, Nintendo is not Microsoft. Nintendo may have been a dominant force in the video game industry for a long time, but Microsoft has been a dominant force in the much larger sphere of PC software and has been trying to break into the devices and consoles game for a while.

    In essence, Microsoft has a much wider blind base to pull from than Nintendo. This is ESPECIALLY after Nintendo failed hard at using the momentum of popularity for the Wii to do something to keep themselves on top, doing things like Nintendo of America initially refusing to bring over the Operation Rainfall games. Things like that, as many consumers found they had nearly no games for the Wii after more than half a decade, put a lot of people off from buying the Wii U (myself included). Why buy a system for the next generation at or close to launch when its prior generation turned out to be a waste of money?

    #35 2 years ago
  36. fearmonkey

    Not buying an Xbone One with my own money, at least at launch. I am waiting to see what MS does and how the Launch goes. I am buying a PS4 and according to Amazon, I guess many more are doing the same.

    I am with Polygem on this, I hope to MS learn a lesson on this, I am voting with my wallet. The funny thing is that all of my friends who own Xbox’s, and don’t won PS3′s, are also more interested in the PS4. Some have pre-ordered and some are still on the fence.

    If MS is trying to be Steam, I will see if they end up offering Steam like sales. IF they have amazing sales, or some monthly rental option, that could persuade me to get one. As it is right now though, I don’t see myself getting one anytime soon. I am a collector, I like to own my games. I don’t like the idea that in 2o years I might now be able to revisit my games on Xbone. I still play my 3DO, dreamcast, Xbox and PS1 from time to time.

    #36 2 years ago
  37. monthigos

    Deeply flawed huh? Is it so deeply flawed that MS is trying to emulate Steam, attempting to circumvent used game sales which offer no return to publishers? Last I checked Steam was pretty unpopular at launch as well, but with their model they are able to offer pretty insane sales. If MS were to follow suit, then I imagine in a couple years the Xbone could be doing very well, very well indeed.

    Also with dwindling console sales (thanks to mobile platform gaming), it makes sense that they would try to make the system an all-in-one entertainment center. No doubt with the negative press and the price point sales will be slow, but just wait and see what happens when the price drops.

    The only thing flawed here, as per usual, is Microsoft’s inability to do effective PR.

    #37 2 years ago
  38. DSB

    @37 I think your analysis is deeply flawed.

    It’s a common strawman when people want to defend something like Origin. “Steam sucked in the beginning too!” and yeah that’s certainly true. Wouldn’t it just be nice if everybody had 3 years in which they could just fumble around and wait for succes?

    They can’t, and they don’t. Either you keep up with progress and deliver something that is of an acceptable standard compared to everything else, or you accept second, third, fourth or however far down the ladder you go.

    It’s that simple. Valve were pretty lucky to have Steam be among the first, and running virtually unopposed. Imagine if someone smarter had been doing the same thing at the time, and outdone them at every turn.

    We know what happens when that is the case. Last time I checked the Zune is dead and buried.

    And that’s because the bottom line is that you have to deliver. It’s not enough to say “My idea is solid, but my execution sucks, please give me about three years to fix it – Because Steam!”

    Nope! I’ll be over here playing videogames on something else instead.

    #38 2 years ago
  39. NightCrawler1970

    @10, Thats my friend was MS-MORALE OFFICER(Vice president of Microsoft)..

    #39 2 years ago

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