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Your email address will not be published.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

Episode 450: Game of the Year Awards 2016Episode 450: Game of the Year Awards 2016

It’s the landmark 450th episode of Gaming Podcast — and the end of a very disappointing year in videogames (among other things) for 2016. These aren’t your usual awards though – Jonah gives the “Best PS2 Game” award to The Last Guardian, for instance. It’s an extra long podcast at almost 2 hours, so enjoy all of the banter.

There’s also news, of course, which includes:

  • Torment: Tides of Numenera and Yooka-Laylee get release dates
  • New Age of Empires 2 expansion out next week
  • Final Fantasy‘s 30th anniversary plans to be revealed soon

Let us know your favorite games of 2016!

Episode 440: Wasteland 3 AnnouncedEpisode 440: Wasteland 3 Announced

This episode is late due to Jonah having to do some film work, but this show also has some huge news items as well.

The news items this week includes:

  • inXile announces Wasteland 3 – and it’s got multiplayer
  • No Man’s Sky is being investigated by the Advertising Standards Authority
  • Destiny 2 rumored to be coming to PC
  • PlayStation 3 was way overpriced and still lost money on each unit, former Sony exec says

Let us know what you think in the comments section.

Developer Wants License Keys For Console GamesDeveloper Wants License Keys For Console Games

UK developer David Braben from Frontier Developments believes smaller development studios are in the worse position when it comes to re-sale of “pre-owned” video games. Since a developer only gets their cut of the profits when a game is sold new, pre-owned titles allow gamers to play games without paying the developer for the effort.

This also hurts larger publishers, but they’re able to recover because of the sheer volume of games and game titles. One idea David had, was to code each game with a unique license key like a PC game that gamers must enter before playing. This would kill the ability to re-sell video games back to the market for others to buy at a cheaper price (translation: better value).

The future shows a higher degree of downloadable games, which cannot be re-used or sold back to the market, but for now, developers have to deal with pre-owned video games cutting into their profit. Presumably you could have a great game with smaller sales and a high degree of resale in the pre-owned market.

Problem with this take on development? Besides large scale video game sellers like GameStop making 80% profit margins on resold games (rather than a 10-15% on new), gamers want a way to make back some of their money on expensive titles. When you’re paying $60 for a game and you beat it in a week or two, you want to resell it so you can invest in a future title.

My theory… make games more affordable so we don’t feel gouged on the price. We may decide to hold on to it longer and tell our friends about it. A good game reference and a reasonable price will increase sales every time. Don’t try to solve pre-owned problems when the problem is the publisher and the industry making huge game prices.

(Thanks, Kotaku)