Xbox One: Pachter predicts DRM retraction ahead of time, discusses Microsoft’s ‘poor’ communication

Thursday, 20th June 2013 09:03 GMT By Dave Cook

Xbox One’s DRM, online check-ins and used game policies were dropped last night, and what’s weird is that Michael Pachter predicted that Microsoft would admit it was wrong. In a new episode of Pach Attack, the Wedbush Morgan Analyst discussed the issues at hand regarding Microsoft’s policies, and

In the episode – taped June 18 – he said of the backlash aimed at Xbox One, “I think the consumer dissatisfaction with DRM is not going to go away unless Microsoft changes the policy, or unless Microsoft does a far better job of communicating its intentions. I think Microsoft has good intentions.

“The company really created ‘always connected’ because they want games to have the ability to not only switch from game, to game, to game; but to switch from game to Skype, to game, to internet browser, god knows what else,” and added, “you really can’ do those without an internet connection. So the always on is to light a switch.”

Pachter added that Microsoft did a “poor” job of communicating its intentions, but when predicting what might happen next, the analyst said that he expected the company to admit it was wrong.

He said, “The part that I think they might consider here – which is way out of character for them – is an acknowledgement that they made a mistake, and I think in this case, Microsoft’s been a bit paternalistic. It means they’re making decisions for you because they think they know better.

“And the truth here is they do know better – they know what the box is capable of, and they really haven’t explained it to any of us. They’ve made the decision that you want that ability to switch between different services, so desperately that you will need to compromise your digital rights, and you’re willing to give to them the giveaway that you will log in at least once a day.

“I think a lot of gamers would rather just play solo games, single player games, and when they’re ready to go online, and want to go online, then they’ll log in. Then I think Microsoft has carte blanche to wipe the download off the hard drive. So I think that the correct solution is to enable disc-based gaming with no restrictions on transfer, and have the consumer sign a contract or end-user licensce agreement that says, ‘If I choose to download the disc to my hard drive, then I consent that you will log on once a day’.

Pachter then suggested that those willing to play offline only be exempt from the old rules, and voiced concern over the issue of overseas military players.

Here’s the best bit, “My best is, Microsoft’s smart enough to know it made a mistake, they have no intention of incurring this type of wrath. They would like to make everything right. They will absolutely – certainly – engage in some type of education effort to make it clear to people what they’re trying to do.

“But I think if they’re really smart, you would see a retraction of the DRM policy and they will say ‘status quo: you can play disc-based games, disc only, swap them, give them away, re-sell them, use them as coasters, do whatever you want with the disc, and we support that’.

“If they’re smart they’ll do it pretty soon. This was taped on June 18, and I’m hoping that they do this before November, but sooner is better. The sooner they retract the policy, the better for them. Good luck to you if Microsoft doesn’t, then I understand why you’re moving away to PS4.”

What do you make of the above then? Does Microsoft still have some convincing to do? Let us know below.



  1. adge_uk

    No way Microsoft will EVER reverse the DRM decision. That’s built into the hardware via the infinite power of the cloud.

    #1 2 years ago
  2. silkvg247

    They never apologized or admitted their mistake, and I for one don’t believe they had best intentions in mind at all with a 24 hour checkin policy. The way they’ve reversed has come across as very patronizing and they even sound childish.

    FINE You can have it like you had it before but we’re taking away all the good stuff as well!

    They had no reason to cancel the sharing of digitally downloaded titles with family. Other than spite. What a company… sheesh. Anyway once again the main “loser” out of that decision will be them, as it would have given them a slight edge for those families out there trying to decide between consoles.

    @1 They have, you need to catch up methinks. :)

    #2 2 years ago
  3. adge_uk

    Nope. Can’t happen. All the games use CLOUD POWER so they won’t work without it.

    #3 2 years ago
  4. Francis O

    F%ck Pachter

    #4 2 years ago
  5. Puggy

    So this Patcher person said, what most people on farious places on the Web said (if they were not rageing)?
    And… that makes him special? I mean that was the only option they really had left. It might even give them some favorable voices since “they listened to me!” fans will now buy their product for sure.

    #5 2 years ago
  6. ps3fanboy

    don’t forget they still tried to fuck everyone over, for some extra cash with this draconian drm. they can also easily patch back the draconian drm when they want to later, since it is build into the xbone’s hardware from day one. so i don’t see any reason why people should just suddenly forgive them and go out and buy the xbone.

    #6 2 years ago
  7. redwood

    @4 and here we have the mandatory F-patcher comment

    #7 2 years ago
  8. Kieran

    if microsoft can turn drm off with an update then they can enable it as well i bet yas if X1 gets very large sales after a couple of months theyl enable it again thats my take on it !!

    #8 2 years ago
  9. JonFE

    @ Kieran

    And risk having an even higher amount of backslash and the inevitable lawsuits (you *do* know how much Americans love their lawsuits, don’t you?) storming their way? I highly doubt that…

    #9 2 years ago
  10. Samoan Spider

    @6 I’m just going to leave this here because the one-sided ‘MS DRM is evil’ nonsense is getting boring, but Sony aren’t whiter than white so here’s your homework when you talk about what’s been built into hardware. First consider the past:

    ARccOS – Cinavia – Rootkit scandal – DCPS

    I’m glad that MS have taken the online requirement out because it’s a recipe for disaster, but I’m a little annoyed the library sharing feature is lost along the way. That was looking very promising and I would’ve loved it. Can’t have it both ways though.

    Edit: Also, my point with that homework is that when it comes to ramming shit down consumers throats and making up reasons as to why it’s ok, Sony also has prior form. So they could just as easily change their minds later on just like MS could.

    #10 2 years ago
  11. Kieran

    @9 i agree with ya but can you honestly say microsoft wont do something like this down the line ? i do they tried to screw everyone over at thde start for a reason & i do believe if they get strong sales with X1 they will try something at least

    #11 2 years ago
  12. Samoan Spider

    @11 EA might end up leading the way with some pain-in-the-arse requirements and save MS the trouble of having to reintroduce anything (or Sony introducing anything)later on down the line.

    #12 2 years ago
  13. JonFE

    @ Kieran

    Like I said, I don’t believe they can afford to reinstate these policies at a later stage, as it would open an even bigger can of worms.

    That said, there’s no doubt in my mind that all this will sit in the back-burner until X1′s successor. It all depends on when we’ll be ready for a download-only console.

    #13 2 years ago

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