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.

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PlayStation 3: Not About Quantity, About ProfitabilityPlayStation 3: Not About Quantity, About Profitability

The Xbox 360 price drop rumors flow like water and it’s all but officially been announced at this point. What about PlayStation 3 and their price? No.

Nobuyuki Oneda, the Sony’s chief financial officer said, “our plan is not to reduce the price. Our strategy is not to sell more quantity for PS3 but to concentrate on profitability.” (gamespot) This makes complete sense coming from their chief financial officer, as their motivation is to make money, not lose it.

The question remains, how will they actually make money if they’re no longer in the race for competitive market prices? Considering game licensing must Net them some amount of profit Sony’s idea seems to be the exact opposite of their original PlayStation method: saturate the market and sell them all games.

So far we’ve seen very few “need to have” games for the PlayStation 3 console while Xbox 360 continues to build a substantial library and Wii continues to break sales records for apparently no reason. When a game publisher has to decide on a platform to launch a new game, why would they choose the one that doesn’t care to be competitively priced in the market? The one that doesn’t care about quantity of sales?

Sony intends to reverse the entire razor blade philosophy where one sells a cheap razor and charges users for the blades over and over again. Their take on this concept is to sell really expensive razors and put out small half-quality blades. Is that a good market strategy at this point?

DSi Will Be Region-Locked, Sad Face…DSi Will Be Region-Locked, Sad Face…

One of the greatest things Nintendo has done was allowing the DS to be unlocked for regions. This allowed gamers around the world to share their favorite games from all cultures and countries with just a click of the “buy” button at an online store.

The DSi loses this great freedom by locking it down to a region. “Nintendo DS software is region free so you can play any DS software on DSi from any region. You can also browse the internet on your DSi wherever you are in the world and exchange your photos with friends from around the world,” says Nintendo (CVG).

Much like the US Entertainment Industries need to lock down everything and contribute to global piracy, Nintendo follows suit with their hand-helds, tis a sad day indeed. Of course Nintendo reasons it all away by yelling parental controls and making it easier for regions to access their own content.

“DSi is region locked because DSi embeds net communication functionality within itself and we are intending to provide net services specifically tailored for each region. Also because we are including parental control functionality for Nintendo DSi and each region has its unique age limit.”

Specifically tailored for each region is a nice way of saying that each region has to pay the penalty of not being “first” (second, or third) to get some cool new features. Although Nintendo could put emphasis on the region the gamer lives in with complete access out of those bounds if they wanted, they’ve chosen to use this as a crutch to lock users out of content.

Users will get their content, of course. It just means more home brews, software hacks, hardware hacks and workarounds for the system. If that’s what Nintendo is trying to inspire, then they’ve done their job right.

However, wouldn’t it be great if they could just come out and say “we don’t want certain people accessing specific content until we say you can.”

Gaming Podcast 118: Jump The SharkGaming Podcast 118: Jump The Shark

The gaming podcast of the week, the best gaming podcast on the planet! No, just kidding. This week we’re taking a look back at Starfox, we’re reading off some great community questions, covering history on Dave Arneson and hitting up some news:

  • podcast-200x200Will Wright Leaves Electronic Arts
  • Nintendo Wii Bringing Video Download
  • Nintendo Wii Manufacturing Costs down 45% since launch
  • RockStar connecting Flash games and the Nintendo DS
  • Dave Arneson Dies at Age 61
  • Electronic Arts Want Their Brass Knuckles Back

Thanks for the great responses this week, as always, we’re also asking a question of the week: Is anyone else angry that Wizards of the Coast came out of nowhere to buy TSR, Inc back in the day?