Will Xbox Live Survive 2008 Holiday Stress?

This year many gamers will open new consoles for the holidays and many of those same gamers are going bring their console “live” on Xbox Live the same day. Traditionally we’ve found Xbox Live falls under the weight of the holiday rush much like Apple’s iTunes. Will we repeat history again?

Although a fully loaded Xbox Live service is money in the bank, how much money will Microsoft lose when gamers login for the first time to a service in a state of destruction? People say first impressions are extremely important, but Microsoft makes a poor first impression every holiday. Xbox Live’s Jerry Johnson told Eurogamer:

“I can tell you that when Robbie Bach is on the phone on Christmas Day calling people asking what the hell is going on, and that’s coming down from Steve Ballmer… that’s the kind of attention it got last holiday.

Many things have changed since then, and we realised [sic] the kind of growth trajectory we were on and had to prepare for it.” (Kotaku)

It’s obvious the top executives at Microsoft want to give customers a great first impression and, after a few repeated holiday down times, this year is the chance to change it all. By now, Microsoft should be fully aware of the holiday flash crowd and have a system ready to cover the load.

Plenty of gamers login because their console automatically signs in on startup, but a handful of those gameres will be shopping for Xbox Live Arcade games to see what Microsoft is now offering them and their new console. Many XBLA games the current 360 crowd is bored of will be fresh and new to holiday adopters so it’s very important to keep the system online.

Much like Amazon, sales will decrease when the service is busy or under heavy load. Hopefully Microsoft is ready to make a great first impression to new buyers and give them the option to buy high valued (high markup) electronic downloads.

0 thoughts on “Will Xbox Live Survive 2008 Holiday Stress?”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Phil Harrison’s Building a 100 Million Dollar FranchisePhil Harrison’s Building a 100 Million Dollar Franchise

Once upon a time, Activision Blizzards CEO Bobby Kotick kicked a few franchises to the curb: Riddick and Ghostbusters. No doubt, this was a result of the Activision and Blizzard merger requiring some resources to the merged together while others were cut from the lineup. Phil Harrison, the new big suit at Atari/Infogrames has raised these little birds from the ashes with a dream to build them into 100-million dollar franchises.

While Bobby Kotick said the titles, “don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises,” Phil Harrision sees it as a personal challenge to prove him wrong.

“What Bobby, perhaps unhelpfully said, was that those games were franchises which wouldn’t make $100m of revenue and generate sequels. If that’s his benchmark, then fine — and we’d love to aspire to the same benchmarks. But you know what? I would love to turn Ghostbusters into a $100m franchise, just to prove him wrong.” (1up)

In many ways, this is the difference in attitudes from a large firm compared to a smaller firm with strong goals and a vision for success. Activision Blizzard is big now, perhaps the biggest publisher in the industry, they can’t be bothered with minuscule 80-million dollar franchises. Others, like Atari, strive to take a title from nothing to something of greatness. Granted, Atari’s failed in a lot of franchises, but with their new ex-Sony executive behind the helm things could turn around and this might be the first step.

Most of the best game franchises in existance today started from nothing but a dream. Big publishers don’t have time to dream, they’re too busy making money off the fanboys of their current franchises.

Episode 252: DuckTalesEpisode 252: DuckTales

This week, Paul can’t make it, so we bring on a Paul substitute, Dan Quick of the PolyCast podcast – and the show doesn’t skip a beat thanks to Dan behaving like Paul without realizing it. This week’s Gaming Flashback explodes like a blood sausage with Wasteland.

This week’s news items include:

  • Dashboard update gives Indie Marketplace more visibility
  • Call of Duty: Black Ops 2 outed by Amazon France
  • Skyrim DLC won’t follow same model as Fallout DLC
  • Electronic Arts terminates “free Battlefield 3 for preordering Mass Effect 3” deal early
  • Alan Wake on PC because Remedy “a nagging little kid” to Microsoft

In addition, we have Reader Feedback for Paul’s Pixie Diamonds contest – the winners will be determined next week. The contest’s Question of the Week remains the same: “Who is your favorite Disney Prince or Hero, and why?”

GTA IV: 46th Best-Selling Game In AugustGTA IV: 46th Best-Selling Game In August

Like a washed up superstar, Grand Theft Auto IV continues to drop in NPD figures. This Axl Rose of video games came on strong and sputtered out into oblivion with barely a notice, leaving the spotlight and all hype behind it. This drastic fall may hurt any negotiations “behind closed doors” with Electronic Arts and their constant attempts to take over Take-Two.

Prior to the release of GTA IV we, in our gaming podcast, predicted a huge launch would up the anti against the bids on Take-Two from EA but things didn’t work out exactly as we expected. Although the game has sold 8.5-million units, it might not add any new bargaining power to the back door negotiations.

A game company is only as good as their games. A hit title which dies out quick helps financially guide the future of the company; technically the future isn’t so bright. With the title quickly falling off the top game sales charts we may never see it hit record sales figures to match that of smaller titles. Having one hot title every four years that “breaks records” for a week isn’t a strong weapon against a low bid from a larger publisher.

While EA may not have any record setting “one week” sales titles yet, they do have a consistently strong set of titles which stick on the charts for months with newer titles arriving to take their spot when they fade. The same can be said for a few other notable publishers, Activision and Ubisoft. To survive in the hot game industry, especially with market downturns, one must have a cycle of great games to publish throughout the year consistently year-over-year in order to provide evidence of their financial stability.

Assuming the bid won’t raise for GTA IV, where does that leave Take-Two? Perhaps Take-Two is better off under the umbrella of Electronic Arts after all. The waters are getting more hostile in the industry as companies compete for gamers attention with 100-million dollar titles and casual games and game consoles (read: Wii) start to build a whole new none-gamer-style momentum.

Is Take-Two better off under the EA brand?