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July 14, 2008, 6:10 pm

Xbox’s mass-market makeover

Xbox Live
A new interface and customized avatars gives the Xbox a Wii-like feel. Image: Microsoft

By Yi-Wyn Yen

LOS ANGELES – Microsoft’s Xbox 360 is getting an image makeover. To appeal to the “casual” gaming audience, Microsoft executives on Monday said they are aggressively marketing the hardcore gamer console as a multipurpose entertainment machine to watch movies, TV shows, and listen to music.

The approach appears to be the latest tactic to compete with Nintendo’s Wii, the top-selling video game console. As the E3 video game conference kicked off this week, Microsoft (MSFT) announced several exclusive partnerships with big media companies to deliver more movies and TV shows to watch through the Xbox. Gamers can now download any movie available on Netflix (NFLX) on the Xbox to watch on their TVs. The service is free for Netflix subscribers.

Microsoft has also teamed up with NBC (GE) and Universal Studios to stream hits like “Monk,” “30 Rock,” and “The Bourne Supremacy” in high-definition through the Xbox. “This is how we’re fueling our growth with more entertainment choices,” said Xbox executive John Schappert at a press conference in Los Angeles.

Schappert promises that the Xbox operating system will be easier to use. He unveiled a new Xbox Live dashboard that arranges the different categories in a more simplistic manner. The Xbox also introduced animated characters known as avatars – a feature found on the Wii – that players create to interact with Xbox Live’s online community. Don Mattrick, who leads Microsoft’s entertainment and gaming division, said the new graphical look of the Xbox will “drive console demand.”

But will it drive the mass market to buy the Wii over the Xbox? Gaming analysts say that despite the new games and family-friendly offerings from the Xbox, the console still has a ways to go to convince soccer moms it’s a better value. Microsoft cut the price of its older Xbox versions by $50 to $299 but plans to discontinue that model. It will sell a 60 gigabyte version for $349. The Wii retails for $249. “If Microsoft wants to attack the casual market, they need to get down to $249,” said Todd Greenwald, a gaming analyst with Signal Hill Group.

The Xbox has struggled to crack the broad consumer audience the way the Wii has. Mattrick declared that the Microsoft would sell more Xboxes than Sony’s PlayStation3 (SNE), the other console favored by hardcore gamers. Though he never challenged Nintendo publicly, Mattrick said the Xbox will “transcend to deliver to everyone.”

Microsoft tried a similar strategy at the last E3 gaming conference when it introduced a new movie trivia game called Scene It that used a four-button controller that resembled the Wii controller. Said Greenwald, “[The Xbox] is trying to be too many things to too many people. It’s not succeeding. I don’t think the Xbox is getting the right message across to the Targets and Wal-Marts, where the mass market is.”

Many cable and DSL companies monitor traffic. They will slow down Internet speed if you are streaming movie through Xbox. You can only watch video tape quality movie on Xbox.

Posted By Brian, AR : December 9, 2008 5:41 pm

Xbox is the console for champs and dont argue with that!!

Posted By Shane, Whitehall PA : October 15, 2008 11:45 am

Wonderfull another upgrade that will make online gaming complete with excess lagging, since the latest update on xboxlive on september 29th any online gamer with the 360 will tell you that things infact have only gotten worse, how about forget movie watching and music listening and FOCUS ON THE ONLINE GAME PLAY THATS WHY WE BOUGHT IT!!! cant wait for gears of war 2 btw.

Posted By Henry,barrie, ontario : October 9, 2008 7:24 pm

PS3 sucks soooo much I have a xbox360 and I’m proud of it. The Wii is not for hardcore gamers

Posted By Shane, Whitehall, PA : October 9, 2008 12:42 pm

If you change the xbox to a wii type consule. Hardcore gamers will go to PS3

Posted By Ryan, NA,MA : September 19, 2008 7:40 am

I bought a 360 elite when it first came out after trading in my dieing release 360 back to Gamestop (I bought it used and was under a 30-day Gamestop warranty). I’m now on my 3rd elite after two deaths that were completely covered by warranty. Granted the downtime was annoying, but I still prefer the 360 over PS3 any day. Only PS3 game I want to play is Final Fantasy 13 (including Versus). Oh wait, it’s coming out for 360 now. :)

Posted By Phil Bristol, CT : September 17, 2008 11:56 am

PS3 Blu-ray is great….but I really think we are about to skip the whole HD DVD era and go to digital storage and streaming using media PCs and consoles. PS3 Blu-ray is great….but they may have won a war that nobody will really care about in the end. I have 2 360’s and never had a problem out of either.

Posted By Jason, Memphis TN : September 12, 2008 3:19 pm

no self-respecting hardcore gamer has a wii. The wii is for old people and realy young kids.

Posted By macdisser,bronx,new york : August 15, 2008 6:29 pm

I have an Xbox 360 that I really enjoy. in my opinion the games are fo superior quality and it has a more streamlined interface. this new family direction is not good news however. i prefer my console to be used to play qaulity games that arent designed for children under 10 or designed to make it easy to win with no skill involved whatsoever.

Posted By Dan Fall River MA : August 14, 2008 8:28 pm

I really wanted a PS3. I wanted one because my PS2 never failed me and had the best games. I had my $600 in hand to purchase one, but time constaints forced me to wait a few weeks before I’d get a chance. Thank God! I watched as the weeks went by and the reveiws came out, disbarring the PS3 for it’s lack of games and hardware issues. I immediately whent out and bought a 360. Two years later and I’ve never had a hardware issue (though some of my friends have but were covered by warranty). THe Xbobx 360 offers the better line-up of games in my opinion, plus they definatly have the best online experience to date. I like to think of myself as a recreational gamer (I usually get maybe 10 hrs a week) however my gameing preferances might hint at a hardcore gamer (I preorder some stuff).
I feel a little betrayed by these stupid avatars Microsoft is developing, it feels too childish for what kind of console it is and I DO NOT care what the 9-year old that I’m beating in Halo “thinks” he looks like (tall, muscular, spiky hair).

Posted By Patrick, Bangor PA : August 6, 2008 12:57 pm

We’re going on our third Xbox console but I have to say I think Microsoft’s customer service has been pretty good. We’ve had a lot of down time when it hasn’t worked but microsoft has replaced it twice at no cost and keeps extending the warranty so we’re still covered. Plus, we like the games available for it.

Posted By Kansas City, MO : July 16, 2008 10:07 am

Does anyone else have their 8-bit Nintendo, or Sega? Maybe Playstation 1? I have all 3 that never give me a problem, but have already gone thru 4 360’s in 2 years. Playstation 3 will be my next choice.

Posted By gamer, az : July 15, 2008 11:47 pm

I’ve had my 360 since about 3 months after they came out and I’ve never had any overheating problems. I got the red ring one time but I unplugged it immediately and then plugged it back in, solving the problem.

Posted By Cory, Portland Oregon : July 15, 2008 3:22 pm

I’m on my second 360. The first one RRoD’d on my. This new one sounds worse than my original. The fan and disc drive are really loud. Buyer beware.

Posted By Chris, Olathe, KS : July 15, 2008 3:08 pm

I am not getting an Xbox 360 I am very happy with my PS3 and proud as well

Posted By Frank, Tallahassee, FL : July 15, 2008 2:06 pm

When Sony’s Blu-Ray technology won the HD battle, Microsoft should have instantly discounted the 360 to $249. The Wii isn’t running Blu-Ray, and the price point is acceptable to consumers. Until Microsoft figures out we’re not going to pay Sony prices for a system without Blu-Ray, they won’t get into consumers hands. The system isn’t seen as the one to own, because of marketing, pricing, and lack of a Blu-Ray drive.

Posted By Joe, Denver, CO : July 15, 2008 12:38 pm

“But will it drive the mass market to buy the Wii over the Xbox?”

I don’t think that’s what Microsoft is hoping for.

Posted By Dan, Dallas TX : July 15, 2008 11:24 am

XBOX is horrible quality… I am on my 3rd one and the drive is dying :(

I am also a proud owner of a useless HDDVD component for the XBOX. They should address the issue, whether they will ever put BluRay in the system. Most likely they will wait until they release a new system.

Seems like I back the wrong horse.

Posted By Midland, TX : July 15, 2008 10:05 am

For the 360 users who have problems. Many, but not all had cooling fans add ons, and had the unit plugged into surge strips which is a no no as told by Microsoft. 360 has a surge protector in that big Grey power box always plug them directly into the wall socket. Other issues is cooling, and you really need to stand them upright and give them ventilated air space! Old consoles did have board issues so stay away from ebay and used ones.

As for the Wii, I have had one for a while now, the problem with it is the quality of the games (not video, actual game play) are very hit and miss, normally being more miss. Group games are cute but other then that I have gotten bored with it and hardly play it anymore other then when guests come over.

Posted By Roger, Jacksonville, Fl. : July 15, 2008 9:14 am

I too have had the problem of a 360 overheating and breaking, and it just so happend that my sevice term had just expired. Even with this problem I really like my 360, would continue to buy the microsoft systems but I am afraid they are going to become a “family” system which I do not like.

Posted By John, Pittsburgh PA : July 15, 2008 9:02 am

I know as many people that have had issues with the Playstation. Make sure you have any game console in a well ventilated place and where air can flow through it so it can cool properly. Xbox and Playstation 3 use some very high powered processors, and heat it their worst enemy.

Posted By Eric, Cincinnati OH : July 15, 2008 8:47 am

During the Indy Races in NY a couple of weeks ago, I watched Soldiers in Iraq play live games against the drivers with Xbox and Pro vs Gi Joe.
Nice real time capability and idea!

Posted By Sonny, NYC, NY : July 15, 2008 7:32 am

Becoming mass market for consoles is the same as the PC world. You need a good selection of segment appropriate application/games to attract. For example” the XBox, PS3 have very few titles for young children (who have soccer moms)–there’s no Pikachu equivilent in XBox land.

Posted By Paul, Vancouver B.C. : July 15, 2008 12:54 am

Well I am a Proud Owner of a New 360. I just got mine Sunday.

Posted By Troy Aldrich Port Orange,FL : July 14, 2008 9:22 pm

Xbox 360 Had 2 units fail on me, beware of poor quality and poor, actually nonexistent customer service. Bad disk drive and overheating.

Posted By Bill Dodd, Clarksville, IN : July 14, 2008 8:42 pm

Instead of doing this, maybe Microsoft needs to start by making more reliable consoles. I have had to have five, yes FIVE replaced or repaired in under two years (4 Pros, and 1 Elite). I choose the 360 over the PS3 because I have never been a PlayStation fan, plus the 360 had games I actually wanted to play. The only reason I haven’t gotten a Wii is because they are impossible to find, and no I longer want one. However I am very wary of purchasing any future Microsoft consoles, so may find myself venturing to the next Playstation and/or Nintendo console.

I really like the 360 in terms of games , power and features, however it seems like they break ALL the time. So what good is the new interface if the console doesn’t work?

Posted By Chris, Georgia : July 14, 2008 7:22 pm
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