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BreakABone
08-30-2010, 09:59 AM
This is actually an article I wrote for Nerds on the Rocks like 2 weeks ago, been meaning to post it here.

Last week, I posed a question to my Tweeps, "Is Microsoft in a better position at the end of the generation?"

The knee-jerk reaction would be of course they are in a better position! They have increased their marketshare by outselling the original Xbox by about 15 million units at this point, and the generation isn't even done. They have a stable of solid 3rd party support, and most importantly they have weakened the PlayStation brand by "borrowing" a few of their key exclusives such as Grand Theft Auto and Final Fantasy XIII.

With the launch of Kinect in a few short months, Microsoft is also making an active move to garner more recreational gamers and expand their userbase. Everything is coming up roses if you are Microsoft at the moment.

So the only question remains is, how could they be in a worse position at the end of the generation?

The answer is both a bit complex and simple at the same time. Microsoft has been so busy trying to do right this generation that I feel they aren't planning for the long-haul. It was a lesson Sony learned as they transitioned from the PlayStation 2 to the PlayStation 3. You can't build a brand on 3rd party franchises because there's no guarantee they will be there forever.

This easiest way to talk about this took place only two days ago as EA and BioWare announced that they would be bringing the space-epic, Mass Effect 2 to the PlayStation 3 console. Now for the last 3 years or so, Mass Effect has been a 360-exclusive (let's exclude PC in this conversation) and one of the key reasons to own the console. Right about now, folks are screaming at their monitor, but the PS3 version comes out a whole year after the Xbox 360 version and you can't import your save from the first game! Both are valid and true points, but it isn't so much the past as the future that Microsoft needs to worry about. Will Mass Effect 3 be co-released on both platforms at the same time? Can Sony make a deal to get exclusive content? Once, you no longer control the game, there are too many elements that are against you.


Mass Effect 2 finds a new home.
Mass Effect is only one example. Going into the next generation, Call of Duty is the biggest franchise around (again let's ignore the Wii line-up for this part of the conversation) and MS has the mindshare with the franchise this generation, but going into the next they have no control over it. What if PlayStation 4 hits first with the first next-gen Call of Duty, do you think gamers will wait around until MS releases their next Xbox to play the latest Call of Duty? What if Nintendo decides to match power with power and they get into the Modern Warfare... er war? These are things that Microsoft can't control and can't depend on when revving up to make the jump into the next generation.

This is generally when a strong first and second party line-up comes in. And this is where I feel that Microsoft has dropped the ball this generation. In the almost 5 years that the 360 has been on the market, Microsoft has really only created Gears of War and Mass Effect as notable franchises. As we saw already this week, Mass Effect doesn't need to stick around Microsoft's console, and there's no guarantee that Epic will continue to make Gears of War once they complete the trilogy. Granted, it sells extremely well, but they could be looking at 2 or 3 viable platforms next generation in which to sell a new IP.

As for Microsoft's studios. In the 9 years they have owned Rare, they have really diminished the company's brand. None of their games have been extremely note-worthy and now they are off making sports games for Kinect. Bungie Studios is putting the wraps on Halo Reach, but after that they are free agents and already announced plans to do multiplatform games. Ensemble Studios closed down a year ago.


Bungie's Swan song on the Halo Franchise
The only studio of note that Microsoft has left would be Lionhead which is wrapping up production on Fable 3. They also created 343 Industries which is an internal team that will handle the Halo IP after Bungie is gone, but we know nothing of their quality.

In short, Microsoft has done a terrific job in gaining the ground/marketshare they did this generation. They have provided a ton of quality games for owners of the Xbox 360, but I think it is time Microsoft starts thinking long-term. I realize that the console wars are a figment of a gamer's imagination, but they do need compelling exclusive reasons for people to pick up the next generation console over whatever Nintendo or Sony produces. The time is now for them to start building up new studios and getting them to work on brands while they have an extremely large market to sell it to.

Yeah just read it like it was a week or two old (mostly due to the announcement of Mass Effect 2 on the PS3)

http://wp.me/p10OL8-9k

gekko
08-30-2010, 11:20 PM
Earl, why are you trying to make something out of nothing?

Vampyr
08-31-2010, 09:53 AM
No offense, but this doesn't make a lot of sense. :p

Since when has increasing your market share, increasing profits, and drawing in more support for your platform than your competitors not been a good business move?

I am actually a strong advocate for -not- making plans for the future, especially in the world of business. You will always be operating on guesses which will probably turn out to be wrong. It is much wiser to react to situations than to try to guess what will happen, especially in terms of business.

Microsoft is doing the best possible thing they can: increasing revenue in the current market. As long as they continue to produce a quality product, they will have developer support and in turn customers.

Professor S
08-31-2010, 12:30 PM
Mass Effect 2 (the game, not the franchise) going multi-platform well after it is still relevant means virtually nothing in terms of "the state of MS". Games have jumped multi-platform like this before, and they will again, and it likely won't change anything.

BreakABone
08-31-2010, 11:57 PM
Earl, why are you trying to make something out of nothing?
Hey, there are a lot of gamers who agree with me.
I just had a look at their line-up while doing the two threads, and they are really weak on any type of 1st/2nd party content.

No offense, but this doesn't make a lot of sense. :p

Since when has increasing your market share, increasing profits, and drawing in more support for your platform than your competitors not been a good business move?

I am actually a strong advocate for -not- making plans for the future, especially in the world of business. You will always be operating on guesses which will probably turn out to be wrong. It is much wiser to react to situations than to try to guess what will happen, especially in terms of business.

Microsoft is doing the best possible thing they can: increasing revenue in the current market. As long as they continue to produce a quality product, they will have developer support and in turn customers.
And I give them credit for most of that. (I'm still not sure how much profit they actually make on this model since they lump gaming into their entertainment section)

The fact of the matter is, we've seen a perfectly good example of what happens when you don't think of the future when Sony went from the PS2 to the PS3. They lost about 75% of their userbase so far. MS doesn't have that big of a userbase to erode as much, but the fact is if all 3 consoles start off on equal footing next gen, MS is in a terrible position.

I mean honestly, as far as I know, outside of Kinect stuff, MS has 4 major exclusives land up for the next 2 years. This generation, who knows when it will end, but would be the perfect time for them to experiment with new IPs and see what does and doesn't stick. Instead of trying to force the situation next gen by paying developers off again.

Mass Effect 2 (the game, not the franchise) going multi-platform well after it is still relevant means virtually nothing in terms of "the state of MS". Games have jumped multi-platform like this before, and they will again, and it likely won't change anything.

Mass Effect 2 on its own means jack squat. I'm almost certain I mentioned that. Its when Mass Effect 3 rolls around. MS no longer has it as a checkmark on their console if it comes out on the PS3 as well.

Typhoid
09-01-2010, 12:45 AM
Hey, there are a lot of gamers who agree with me.

Hey, even Hitler had followers. Amassing a crowd of like minded people isn't hard.

The fact of the matter is, we've seen a perfectly good example of what happens when you don't think of the future when Sony went from the PS2 to the PS3. They lost about 75% of their userbase so far.

I think this has more to do with the fact that the 360 was released about a year before the PS3 was out. The 360 had an entire year to build up a fanbase and steal people away from the PS3 simply because it was there before the PS3 was. Not to mention the Wii was released at about the same time as the PS3.

I don't think it's specifically anything Sony did that made the PS3 sell a lot less compared to the PS2, for the most part. Yeah, you have people who will say "Well it was too expensive", but really - it's because it wasn't released first.

gekko
09-01-2010, 01:41 AM
My last post was lost to the login screen, so here's a shortened version:

The fact of the matter is, we've seen a perfectly good example of what happens when you don't think of the future when Sony went from the PS2 to the PS3. They lost about 75% of their userbase so far. MS doesn't have that big of a userbase to erode as much, but the fact is if all 3 consoles start off on equal footing next gen, MS is in a terrible position.

Stop pretending PS2 was a perfect system. Launch in Japan had trouble selling games, developers speaking out due to the difficulty and cost of development. PS3 also had some issues, Blu-Ray, cost, and of ya, development issues again...

Microsoft actually ended on a high note: Xbox Live version 2. Xbox Live was huge, and still is. Look at the research of how many people actually play their 360 vs. just own a Wii and let it collect dust.

This generation, who knows when it will end, but would be the perfect time for them to experiment with new IPs and see what does and doesn't stick. Instead of trying to force the situation next gen by paying developers off again.

Only 10% of games ever ship and the economy is bad. Only experiments you are going to see involve spartans fighting covenant and a Call of Duty game set in the last half century.

Vampyr
09-01-2010, 08:27 AM
The fact of the matter is, we've seen a perfectly good example of what happens when you don't think of the future when Sony went from the PS2 to the PS3. They lost about 75% of their userbase so far. MS doesn't have that big of a userbase to erode as much, but the fact is if all 3 consoles start off on equal footing next gen, MS is in a terrible position.

But that isn't a perfectly good example of that. It didn't have anything to do with them not "thinking of the future", it had to do with them creating a system that was too expensive and expecting the name to sell it. Then didn't need to start new IP's in order for the PS3 to be successful, they just needed to build a quality machine that people could afford. Look at how much better it's selling after the price drops. Did Sony suddenly develop a lot of new franchises that got gamers excited? No. They just made their existing product better.

BreakABone
09-01-2010, 09:24 AM
But that isn't a perfectly good example of that. It didn't have anything to do with them not "thinking of the future", it had to do with them creating a system that was too expensive and expecting the name to sell it. Then didn't need to start new IP's in order for the PS3 to be successful, they just needed to build a quality machine that people could afford. Look at how much better it's selling after the price drops. Did Sony suddenly develop a lot of new franchises that got gamers excited? No. They just made their existing product better.

A little of column A and B and a dash of C.

Price was a huge factor for Sony, I won't ever deny that.

But the fact is PS3 didn't have a compelling software line-up outside of maybe MGS 4 for some time. Its hard to say now, but I'm almost certain that if GTA IV or FF 13 had remained exclusive that 600 bucks wouldn't have been too much of a barrier for some people.

With the high price and few compelling reasons early on, no one had a reason to buy a PS3.

As for franchises, Sony has created a ton of interesting IPs between this gen and last, Resistance, Killzone, Uncharted, LittleBigPlanet, Heavy Rain, and its irk.

And column C was in addition to a price drop, they also created a better looking product.

Angrist
09-08-2010, 04:56 AM
BaB, stop making fake accounts which agree with you!! :p