Black Ace
10-23-2002, 08:38 PM
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Microsoft's Xbox was one of the most anticipated gaming consoles in history. It received enormous press throughout it's development and launch. Microsoft spent billions designing and promoting it, and they lose money on every unit sold. This was all part of Microsoft's gamble. They anticipated huge Xbox and Xbox component sales. They also got the chance to get into the living rooms of people who otherwise wouldn't have any part of Microsoft. Microsoft's gamble failed, and the Microsoft's reputation has been tainted as a result.
Microsoft's first major mistake was to tout the Xbox as strictly a gaming console rather than a computer. We all know that the Xbox is made from computer components and could have easily been converted into a hybrid computer/gaming machine. Microsoft didn't want to do this because they were afraid people wouldn't purchase the unit for playing games if it was a computer as well. They had previous attempts at such a gaming/computer hybrid system to draw from as well, such as the Phillips CDi, which failed miserably. It was this decision, however, that doomed the Xbox to failure.
The decision to make the Xbox a strict gaming system put it into a different league. Gone are the buyers who would have bought the unit for a computer. These are the people who know Microsoft and their reputation, and are interested in performance of the unit. Instead, the demographic Microsoft got were gamers. They didn't care that the Xbox was faster than the Playstation 2. Playstation 2 has more games, and more importantly more good games. Microsoft made a nobel attempt at producing top-quality games to compete with Sony and Nintendo, but the "big two" had years of experience and relationships in the console business, something which Microsoft did not have the luxury of. The result is that the Playstation and GameCube had the games, and the Xbox did not. I like to compare this situation to that of Apple. Microsoft would be more successful if it simply had the software that everyone wanted, just like Apple. The folks at Microsoft aren't stupid, and the recent acquisitons of companies such as Rare show that they are trying to get the games the fans want.
We can see the effect of this with the Xbox sales numbers. The Xbox has consistently sold far less units than both the Playstation and the GameCube in all parts of the world. The Adrenaline Vault reports:
Sony's PS2 console is expected to account for 63 percent of sales, followed by Nintendo's GameCube with 21 percent and Microsoft's XBox with 16 percent. The research highlights the domination of the Sony system. By the end of this year, 72 percent of global cumulative shipments will be PS2 systems, compared to 16 percent GameCube and 12 percent Xbox.
These numbers fall far short of Microsoft's estimates for the console. Pity, it had so much potential.
Another facet of the Xbox that failed is its security. The Xbox was designed to be secure. However, that security was compromised, and the Xbox now has "mod chips" available for it to allow pirates to play pirated games. Considering this is Microsoft's first attempt at a console, they wanted to make it secure. You don't earn a very good reputation when your uncrackable console is cracked. Microsoft knows this, and they told nVidia to update the chip in the Xbox to foil hackers. This forced nVidia to throw out millions of dollars worth of chips to change the design, resulting in a quarter loss. Now, the Xbox "v1.1" is out with the new hardware, and it has again been compromised by hackers. This is a slap in the face for not only Microsoft, but nVidia, who bore the burden of switching hardware designs.
The ultimate goal for the Xbox may not be lost, however. Microsoft's long-term goal is to get their computer attached to every living room television in the world. They decided to start with the Xbox. Soon enough they will be releasing a new version of the Xbox that has TiVo like functions. Again, I reiterate the fact that Microsoft should have equipped the initial Xbox units with this functionality. If the next generation of Xbox PC/console hybrid machines do in fact sell, it will make no difference for the fate of the current Xbox, as it's still a failure. The new computer-like features of the next generation of Xbox's will appeal to many more consumers than a pure gaming machine. Believe it or not, you can have the best of both worlds.
Another problem in the Xbox is the design. Microsoft chose to put a 10GB hard drive in every Xbox unit. This is a very neat idea, as it allows users to store their own music on the Xbox and all the saved games they can muster. However, it also costs a lot to implement. For the average Xbox user, 99% of the space on the hard drive goes unused. Microsoft could have accomplished the same game-saving abilities of the 10GB hard drive if they bundled a $20 memory card with the console instead of a hard drive. This hard drive could be put to better use had Microsoft put PC-like features into the unit, however that will never occur with the current generation of Xbox consoles.
Microsoft gambled on the Xbox and they lost. The Xbox has not sold, and is completely dominated by the Playstation 2 and GameCube in every part of the world. Microsoft has invested billions in the development and production of the console, and they still are losing money with every console sold. The recent price cuts only further the dent in Microsoft's wallet. The Xbox is not a computer, and it's not a good gaming machine. What is it? I'm not quite sure.. but what we can be sure of is that it will never be anything, because Microsoft has not enabled the machine's software to be upgraded, although hackers have hacked full Linux distributions onto it.
After a year on the market, the Xbox is in the prime of its life, and frankly it isn't much of a prime. Microsoft bet the bank on this baby, and it will suffer because of it. Even the Xbox's own creator left Microsoft. Maybe Microsoft will get it right the second time around.
Microsoft's Xbox was one of the most anticipated gaming consoles in history. It received enormous press throughout it's development and launch. Microsoft spent billions designing and promoting it, and they lose money on every unit sold. This was all part of Microsoft's gamble. They anticipated huge Xbox and Xbox component sales. They also got the chance to get into the living rooms of people who otherwise wouldn't have any part of Microsoft. Microsoft's gamble failed, and the Microsoft's reputation has been tainted as a result.
Microsoft's first major mistake was to tout the Xbox as strictly a gaming console rather than a computer. We all know that the Xbox is made from computer components and could have easily been converted into a hybrid computer/gaming machine. Microsoft didn't want to do this because they were afraid people wouldn't purchase the unit for playing games if it was a computer as well. They had previous attempts at such a gaming/computer hybrid system to draw from as well, such as the Phillips CDi, which failed miserably. It was this decision, however, that doomed the Xbox to failure.
The decision to make the Xbox a strict gaming system put it into a different league. Gone are the buyers who would have bought the unit for a computer. These are the people who know Microsoft and their reputation, and are interested in performance of the unit. Instead, the demographic Microsoft got were gamers. They didn't care that the Xbox was faster than the Playstation 2. Playstation 2 has more games, and more importantly more good games. Microsoft made a nobel attempt at producing top-quality games to compete with Sony and Nintendo, but the "big two" had years of experience and relationships in the console business, something which Microsoft did not have the luxury of. The result is that the Playstation and GameCube had the games, and the Xbox did not. I like to compare this situation to that of Apple. Microsoft would be more successful if it simply had the software that everyone wanted, just like Apple. The folks at Microsoft aren't stupid, and the recent acquisitons of companies such as Rare show that they are trying to get the games the fans want.
We can see the effect of this with the Xbox sales numbers. The Xbox has consistently sold far less units than both the Playstation and the GameCube in all parts of the world. The Adrenaline Vault reports:
Sony's PS2 console is expected to account for 63 percent of sales, followed by Nintendo's GameCube with 21 percent and Microsoft's XBox with 16 percent. The research highlights the domination of the Sony system. By the end of this year, 72 percent of global cumulative shipments will be PS2 systems, compared to 16 percent GameCube and 12 percent Xbox.
These numbers fall far short of Microsoft's estimates for the console. Pity, it had so much potential.
Another facet of the Xbox that failed is its security. The Xbox was designed to be secure. However, that security was compromised, and the Xbox now has "mod chips" available for it to allow pirates to play pirated games. Considering this is Microsoft's first attempt at a console, they wanted to make it secure. You don't earn a very good reputation when your uncrackable console is cracked. Microsoft knows this, and they told nVidia to update the chip in the Xbox to foil hackers. This forced nVidia to throw out millions of dollars worth of chips to change the design, resulting in a quarter loss. Now, the Xbox "v1.1" is out with the new hardware, and it has again been compromised by hackers. This is a slap in the face for not only Microsoft, but nVidia, who bore the burden of switching hardware designs.
The ultimate goal for the Xbox may not be lost, however. Microsoft's long-term goal is to get their computer attached to every living room television in the world. They decided to start with the Xbox. Soon enough they will be releasing a new version of the Xbox that has TiVo like functions. Again, I reiterate the fact that Microsoft should have equipped the initial Xbox units with this functionality. If the next generation of Xbox PC/console hybrid machines do in fact sell, it will make no difference for the fate of the current Xbox, as it's still a failure. The new computer-like features of the next generation of Xbox's will appeal to many more consumers than a pure gaming machine. Believe it or not, you can have the best of both worlds.
Another problem in the Xbox is the design. Microsoft chose to put a 10GB hard drive in every Xbox unit. This is a very neat idea, as it allows users to store their own music on the Xbox and all the saved games they can muster. However, it also costs a lot to implement. For the average Xbox user, 99% of the space on the hard drive goes unused. Microsoft could have accomplished the same game-saving abilities of the 10GB hard drive if they bundled a $20 memory card with the console instead of a hard drive. This hard drive could be put to better use had Microsoft put PC-like features into the unit, however that will never occur with the current generation of Xbox consoles.
Microsoft gambled on the Xbox and they lost. The Xbox has not sold, and is completely dominated by the Playstation 2 and GameCube in every part of the world. Microsoft has invested billions in the development and production of the console, and they still are losing money with every console sold. The recent price cuts only further the dent in Microsoft's wallet. The Xbox is not a computer, and it's not a good gaming machine. What is it? I'm not quite sure.. but what we can be sure of is that it will never be anything, because Microsoft has not enabled the machine's software to be upgraded, although hackers have hacked full Linux distributions onto it.
After a year on the market, the Xbox is in the prime of its life, and frankly it isn't much of a prime. Microsoft bet the bank on this baby, and it will suffer because of it. Even the Xbox's own creator left Microsoft. Maybe Microsoft will get it right the second time around.