Microsoft: Your DRM Policy Wasn’t Entirely ‘Bad’

Xbox-One-Logo-Wallpaper-HD-Dekstop-Games

The media frenzy with Microsoft and the Xbox One continues. In a surprising turnabout, Microsoft has decided to reverse their Xbox One DRM policy. It turns out that vocal minority of whiny gamers wasn’t so minor after all. However, the cynic in me believes that pre-order numbers must’ve dropped at such an unbelievable rate that Microsoft felt compelled to respond in order to stay competitive against Sony’s PS4. But quite frankly, this was NOT the right move to make.

There’s no doubt Microsoft needed to respond to Sony after E3. But conceding on what was essentially the linchpin to their long term strategy was too reactionary. In some ways it reflects a lack of confidence they may have had in their original plan. If Microsoft was truly dedicated to moving gaming into a new digital age that benefited everyone, then they should have stuck to their guns despite the mountain of bad press. Instead, Microsoft backslides into the safer, short term bet of retaining their current customer base instead of betting the farm on the longer term rewards and learnings. All of this just smacks of weakness.

If anything, I was assuming if Microsoft scaled back on the mandatory functionality of the Kinect 2; if not stripping it out completely to cut back the price. This would have easily made it more competitive with the PS4. To date, I have yet to find any information on why the Kinect 2 is critical to gaming on the Xbox One. If any of you do, please share it with me. Removing the Kinect 2 would’ve been a more sensible strategy given the reservations many still have about it.  But this was a head-scratcher from day one. If they were going to make the Kinect 2 mandatory, why not just build into the system in the first place? This most likely would have greatly increased the manufacturing costs. But that’s a cost Microsoft can eat. And it would have easily justified the $500 price point. However, Microsoft is set and locked with Kinect 2 still being mandatory despite removing DRM.

The real culprit throughout this whole Xbox One debacle can be boiled down to one issue: Microsoft’s Ineffective Communication!

From day one, information from Microsoft has been a whirlwind of conflicting sources and vague half-truths. The message about Xbox One has failed to be consistent. Not only that, they’ve failed to really be entirely forthcoming about how the new DRM policy would help benefit consumers and studios.  Admittedly, there are sources outlining some of these details, but not many that clearly painted a picture of the how it translated to users in a practical manner. It wasn’t until I found this obscure article referencing an Xbox One engineer that the whole DRM really made sense. But when the head of Xbox is making flippant comments about disadvantaged consumers combined with everything else, how do you expect consumers to react? And lets face it, they knew enforcing DRM was never going to be a popular decision. But they should have done a hell of a much better job helping consumers embrace the changes and conveying the benefits that could follow.

PR 101: Don't make exaggerated comments.

PR 101: Don’t make exaggerated comments.

Losing DRM eliminates many of the planned services Microsoft had in mind such as digital access to games, family sharing, lower game price points and more. These were all great ideas building on what Steam is already doing. And honestly, it would have been worth the risk. But Steam also has an OFFLINE mode.  Why couldn’t Microsoft offer a similar option for Xbox One? They could have avoided a mountain of resistance around the required internet connection and the 24 hour check.

Seriously? What an empathetic and tactful message.

Seriously? What an empathetic and tactful message.

Many outlets view the reversal as a major win for consumers. And in some ways, it is (despite my cynical inference). But there’s no denying, games are transitioning more to the digital space. And Microsoft tried to embrace that change. Whether or not it was the ‘right‘ approach is neither here or there. The true winner here is Gamestop and other used retail outlets, not consumers. But this still put smaller studios in more danger of layoffs and closures as game production continue to increase. But as I mentioned in previous posts, the ballooning cost of game development really needs to be re-evaluated.  But more importantly, publishers and developers need to crack down on Gamestop and other used retailers for lost revenue. There’s no sound reasons publishers and studios should not be getting a cut from used games sales. That dynamic should have been resolved by now. There is a solution in that relationship, and it’s not by passing the cost down to the consumer.

The DRM reversal also raises a few new questions such as: what does this mean for indie developers? Will the XBLIA space operate under the same manner or is it it still closed off? What does this mean for digital downloads, especially new titles? What about cloud gaming? Sony is already ahead of the curve in this regard. For quite a while, the Ps3 has been offering day one digital downloads for new titles. Sony is poised to stab the knife further into Micosoft’s back if they can offer day one downloads at discounted prices, say $49. And if the rumors of cloud gaming for PS3 titles on the ps4 is true, Microsoft has a lot of catching up to do.

Sadly, even with DRM removed, the Xbox One just doesn’t come off as a more appealing option over the PS4. Bottom line: Microsoft still has a more expensive console with minor issues lingering around Kinect 2. It would have been really interesting to see what Microsoft had in the works and how it played out. One thing is for certain: this console war just got a whole lot more boring. Now we have two similar systems that weren’t event that revolutionary to begin with. Congratulations gamers, your voices (and complaints) were heard loud and clear.  Now lets see if you’ll be happy with the fallout of what’s to come.

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