Posts Tagged: xbox

Post E3: Microsoft’s comeback and an early next generation

E3 was fairly low key this year. In place of big reveals or surprises, we saw a solid suite of games as the current console generation hits its full stride. Two narratives stood out: Microsoft is staying in the game, and we’re getting next generation consoles sooner than I originally expected.

Microsoft’s best presser of the generation

Microsoft’s overall E3 message was one of strength and confidence for both the present and future. Their press keynote reassured Xbox loyalists and anyone else considering a dip into the Xbox ecosystem.

Granted, Microsoft’s keynote on paper shared the same DNA as their last few: trailer after trailer for solid third party games. It’s an obvious move given their competition moved in a different direction at E3 this year: Nintendo stuck to Smash Brothers while Sony focused on first party titles. But this year had especially strong game variety and pacing. The presser got virtually every third party game of interest through next year. Closing with Cyberpunk 2077 — hands down the most buzzed about game at E3 — was a masterstroke.

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The pressure is on Microsoft this E3

Microsoft’s E3 presser is a must-see this weekend, and not necessarily for any single game or hardware announcement. It’s because unlike other console manufacturers, they lack any clear long-run trajectory. As the only real wild card for E3 2018, Xbox’s positioning at the show has large implications for its relevancy over the long run.

Conventional wisdom suggests Xbox needs more killer exclusives. Offer the games, and the fans will follow. But at this stage, I don’t see Microsoft capable of making this happen. On paper, they don’t have enough first party studios, and those studios haven’t branched out beyond long-standing IP from the Xbox 360 era.

Nor are Sony and Nintendo standing still. This late in the console cycle, both platforms are hitting their stride. For Sony, the pedigree of The Last of Us II and the hype factor behind Hideo Kojima’s enigmatic Death Stranding sets a high bar. Nintendo is already riding high with a new Zelda and Mario in their back pocket. New Pokemon and Smash Brothers are out later this year with much more to come. Even if Xbox announces four big titles — Halo, Gears, Forza, and a fourth IP surprise — at best Microsoft reaches a draw with Sony and Nintendo.

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Game Pass 2.0 could be Xbox’s smartest move in years

Xbox is in a slump. Sales are solid, but hype and critical attention are behind rivals Sony and Nintendo. It has reached the point where Microsoft could pull out of consoles altogether over the long run with the Xbox One X their final release. But the recent announcement of an improved Xbox Game Pass subscription service (what I’m terming here “Game Pass 2.0”) changes my outlook.

Going forward, all Xbox new release first-party games (e.g. Sea of Thieves, Forza, Halo) will join the subscription service. Previously Microsoft limited Game Pass subscribers to mostly older titles from previous Xbox generations. Seen generously, this is like Netflix offering select first-run movies as they open in movie theaters, while still maintaining a flat $10 a month price. It’s a huge change from what came before.

By focusing on its subscription service, Xbox could sidestep the fragmented game landscape that they’ve faltered on for years. Console hardware sellers have always been exclusives, but Microsoft’s fall well short of the competition. Big budget moneymakers like sports and multiplayer shooters were a sure thing for Microsoft in the Xbox 360 era. Today they are a dicey investment. Budgets are out of control. Gamers are increasingly turning against loot boxes and other questionable microtransactions. Indies can grow to be a phenomenon (PlayerUnknown’s Battlegrounds, Cuphead, Stardew Valley), yet the market is getting oversaturated.

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Microsoft’s shaky Xbox holiday strategy

At a glance, Microsoft had a decent E3. Their presser showcased a huge number of quality games, solid genre diversity, and decent pacing. Xbox head Phil Spencer remains a great ambassador for the brand. And the Xbox One X looks to be an engineering marvel, a cutting edge console in a svelte enclosure.

But Xbox doesn’t exist in isolation. Sony is well ahead in mindshare and sales. Nintendo surprised many (myself included) with the runaway success of the Switch. With E3 over, Microsoft has two chief questions to answer. Why should anyone buy an Xbox One X? And why invest in Xbox over the PS4?

Sadly, Microsoft stumbled on both questions. Like I wrote earlier, by leaning so heavily on 4K, Microsoft has put themselves into a weak position for the holidays.

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Software means more to Xbox than Project Scorpio

Microsoft has bet big on Project Scorpio to generate Xbox sales and hype. Their PR cycle projects confidence: Scorpio is a large focus of their E3’s presser less than a month away. They also provided an extensive walkthrough of the hardware specs to Eurogamer weeks ago.

Yet Microsoft is kidding itself if it thinks the market for Scorpio is anything larger than a small niche. Raw horsepower won’t win a console war. In fact it’s the opposite: software, not hardware, would be transformative for Microsoft in the long run.

Scorpio, like the PS4 Pro, is a non-starter for the price sensitive casual market. A Project Scorpio will cost likely $500 or more, double the cost of a baseline PS4 or Xbox One. That’s too expensive, especially given both low and high end consoles share the same game library.

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Gaming trends for 2017

Early signs suggest 2017 will be a conservative year for gaming. The PS4 and Xbox One have little to prove, with an already robust library and huge user base. VR will be fascinating to watch, but mainstream adoption isn’t happening anytime soon. And the disappointing sales of several AAA sequels (Dishonored 2, Titanfall 2, Watch Dogs 2) will make major studios cautious with their output.

Despite all this, several factors may shake up the industry. PC and console gaming have been inching closer together for years; strong PS4 Pro and Scorpio sales should speed up this trend. And Nintendo continues to play a wildcard role. They could transform iOS and Android gaming and revitalize dedicated portable gaming devices.

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The Xbox Scorpio gamble

Microsoft’s E3 announcement of Project Scorpio is big news. It’s the first official sign of consoles moving toward a faster, more iterative release cycle. But the announcement is also a big strategic mistake.

Not because of the Scorpio concept itself. Consoles have advantages with a faster release cadence. There’s more wiggle room for innovation and breakthrough gaming experiences. Game compatibility expands; older platforms aren’t immediately left behind.

Yet I see two big errors on Microsoft’s part. They announced Scorpio too early and are targeting a high end, costly specification.

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E3 2016: Microsoft and Sony presser analysis

The maturity of the console market and strong sales clearly rubbed off on the Microsoft and Sony this year. Each had their missteps, but they stayed on message and were the most interesting pressers by each company in several years.

Yet Sony and Microsoft took different approaches. Microsoft knows it’s well behind Sony and wanted to present a wide net for potential buyers. They succeeded; onstage content was bright, fun, and diverse.

Sony had the swagger of being in the lead. While Microsoft went wide, Sony went uncharacteristically narrow and minimalist. PlayStation VR got a mention, but the focus was otherwise all on games, many of them first party exclusives.

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Apple TV’s gaming appeal: factors for success

Tomorrow Apple is expected to announce an updated Apple TV with a dedicated app store and more powerful hardware. That positions the device to compete directly with the existing PC and console gaming space. Yet it’s premature for console manufacturers and PC gamers to be worried. Nor is it a surefire success for casual gaming in the living room.

We’ve been down this road before. First, smartphone and tablet games were predicted to kill consoles. It didn’t turn out that way. PS4 and Xbox One sales have been strong, even better than the PS3 and Xbox 360 during its opening sale period. PC gaming is booming through eSports and on Steam. And while casual gaming is successful on mobile, it’s fallen flat elsewhere. The Ouya, Fire TV, and the existing Apple TV through AirPlay have all been gaming duds.

Granted, a revamped Apple TV is a step in the right direction. An Apple-based living room platform is bound to take some attention away from traditional PC and console gaming. And like most forms of tech, we can’t quantify Apple TV’s impact until months or years from now. Yet several early factors will telegraph the Apple TV’s success against the exiting games market.

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The Xbox One uncertainty principle

Kotaku editor-in-chief Stephen Totilo:

I suggested that it would be useful if Microsoft could clear some things up. And I granted that, if you weren’t at the Redmond campus, you missed getting your hands on some of the best things about Xbox One. The new rumble in the controllers, for example. That feels next-level.

Was the anger really 20%? In my extended online world, it seemed broader than that. The mood away from Redmond was, at least among the gamers I saw online, the kind of stuttering, stammering frustration that comes with the dawning recognition that, in the Xbox One’s version of gaming’s future, you might not even be allowed to borrow a game from a friend without paying a fee. To console gamers of the last two decades, that seems mad.

Totilo really nails better than any other article I’ve read the massive confusion and PR problems that Microsoft has had since its XBox One unveil last week. It’s a shame on how much of this I think could have been preventable with better organization and preparation. Then again, maybe this is what we get with Microsoft comfortably winning the last generation of consoles: laziness, arrogance, and aloofness. Just ask Sony circa 2006.