Microsoft's Plan to Be King of All Media

An anonymous reader writes "Saul Hansell from the New York Times spoke with Microsoft's J. Allard, formerly of the Xbox games division and now in charge of their push on Apple's captive audience with the Zune. Allard lays out Microsoft's media battle plan, highlighting their longterm goals for expanding beyond games and software. 'This service will at some point add more options for video and mobile phones, Mr. Allard said, without offering details. Actually, Microsoft has been quite successful selling video downloads and online movie rentals through the Xbox Live service already. This seems a bit too much like the initial plan for MSN. This new network would be the switchboard through which all entertainment content and communication flows. Pretty much everything else in the technology world now is revolving around open systems where the Internet, and some simple standards, are in the middle.'"

Duh! Xbox.

[Datamonstar]

This is what I've been telling people all along: that's the reason for the Xbox in the first place. I was so scared for gaming when I first saw that thing because I knew that even though Microsoft's first foray into console gaming would be a complete and utter failure (I was wrong, it wasn't a failure unless you consider the substantial financial loses) their subsequent attempts would be much better because Microsoft had enough money to throw at whatever problem arose the first time. I also make it my point to reason with people that once the consoles market has been thoroughly cornered, and all gaming devices are inextricably mated to the Internet and PC peripherals there will be very little difference between them and the one that serves up everything all at once will be king. Microsoft is doing this, albeit slowly. I give Playstation and Nintendo consoles 20 years more, maximum. Soon we'll have HD movies, and gaming and internet all wrapped up in one device (more or less) and probably under one subscription service that will be hosted by Microsoft. It's not even console wars anymore, it's content wars and there is no way that Sony and especially Nintendo will be able to compete in a long battle because Microsoft has already gotten so deeply involved in the surrounding factors, namely the internet and subscription-based services.

MS doesn't get it

[MLCT]

We aren't interested in letting you become gatekeepers for our entire lives. Since you so very stupidly jettisoned playforsure neither are any media companies interested in you either, as that little case proved, your words and assurances are worthless - MS, you are a busted flush, now sod off and let some creative people on the stage who can actually make a difference.

Re:Duh! Xbox.

[rtb61]

As data delivery technology matures it becomes minor upgrades. Why would any content producer or publisher want to pay a M$ or google tax on all their content, amounting to billions of dollars every year.

Bascialy cheap hardware and open standards will mean it will be far simpler and cheaper for producers or publishers to deliver direct. Ballmer has always had delusions of charging an M$ tax on all internet transactions, media, financial, software even browsing, but it is just that a delusion.

The consumer products companies will win over the long run, as it won't cost much extra to incorporate the additional hardware, in big screen TVs or high resolution virtual reality headsets. Combine those two items with an open source operating system, upon which you can run multiple content delivery systems, and unless M$ starts building a big content library they have nowhere to go.

Re:MS doesn't get it

[Anonymous Coward]

The BBC bought into their DRM infested crap.

Microsoft, out of touch with reality?

[troll -1]

Allard sounds like Ballmer. Microsoft is still clinging the old media establishment ideology of 'content providers' who only get paid because you've DRMed their stuff.

They still don't get the concept of an Internet.

Anyone who's been following trends since Napster was shut down back in 2001 will understand we're undergoing a natural progression from centralized, controlled delivery systems to those where content is everywhere all at once.

An obvious revenue model for this is one where advertising is embedded in content freely distributed over the Internet. After all, that's what worked for free broadcast TV and radio. It's the easiest and least restrictive method of raising revenue to pay for content. I doubt folks will be flocking to buy xboxes and zunes AND giving money to Microsoft so they can watch their favorite shows. Nothing to see here, move on.

"Fail fast" == burn the users

[vrmlguy]

A related article [nytimes.com] based on the same interview turned up this gem:

When I spoke to Mr. Allard, he was up front about Microsoft's slow start. But he defended the approach of "fail fast" and learn. And in typical Microsoft fashion, he talked about the first generations of Zune as early moves in a long-term strategy.

Yeah, the older Zune's can have their firmware upgraded, but try asking the people and companies who invested in 'plays for sure' what *they* think about fail-fast strategies. Fail-fast is just another word for moving R&D out of your budget and onto the shoulders of your customers. The bad news for you is, eventually they will wise up to their actual costs and migrate to new suppliers.

Re:Wrong.

[bigstrat2003]

they make people pay _monthly_ to play games online.

This is not "evil"; nor is it unusual.

Actually, it is highly unusual, as typically games which don't have a persistent state don't charge for online play. Call of Duty 4, for example, is free to play online on every platform except the 360. That's bullshit, in my opinion. More infuriatingly, I'm led to believe that Microsoft doesn't even provide dedicated servers for the games, leaving it up to the developer to do so, or else having peer-hosted matches. If they're not providing servers for us to play on, what the fuck are we paying for? We're paying because Microsoft is in a position to make us. I use many Microsoft products, and am very happy with their quality, and am glad to be a Microsoft customer... but Xbox Live is a ridiculous situation. They will never get a dime from me to play games online which are free everywhere else.

Worse still, this greedy approach is now entering PC gaming too. With a silver Live account, you can join games of Halo 2, but you need a gold account to host them. They're testing the waters, and I wager it's only a matter of time before Microsoft tries to shove paying-to-play down the throats of PC gamers too.

Fat Chance

[Anonymous Coward]

Microsoft has failed miserably when it comes to mobile media. i.e. My MP3 player (which can also do other things)
Where is the Zune marketed? AFAIK, it is only in North America. It is certainly not sold on this side of the Pond.
Even if (and thats highly unlikely) the XBOX became the 'defacto' HD viewing machine then it would be so riddled with DRM and 'Are you sure' stupidity then the hackers would have a field day 'making it work'.

The notion that you MUST be connected to some Server on Planet Microsoft just to view a Film or episode of Heroes/insert fav TV series name here, is just plane crazy and totally idiotic.
There are enough companies in this business who cold easily get together to thwart their plans. Then there are the regulators and governments who (despite receiving lots of dosh in brown paper envelopes) will get in their way.

I'm moving soon to a place where even dial-up is impossible and if they think I'm going to run a satellite phone just so my kids can watch some HD TV programs then I would like some of what their marketing dept is smoking.
(We will be using Radio to talk to our neighbours(on the next island). The nearest telephone exchange is over 100km away.)

MS will fail

[webmaster404]

Five years ago, this would have worked. Now though with Vista failing more people are starting to see beyond MS, and 90% of people who use MS products (XBOX, Windows) don't switch to alternitives not for what MS has done, but third parties. Very few people when they see Office 2007 use that as their reason for keeping Windows, it is almost always a third-party app or game or second party in the case of Halo 3 (which was the reason most people I know bought a 360) but with many third parties now having applications on Linux and OS-X or via good support through WINE or similar programs, Microsoft is no longer needed, in 5-10 years I doubt that very many people will even use Windows unless NT 7 is much much much better then XP. Microsoft is losing the monopoly very fast with the relese of Vista, if the new "MS Media" doesn't work on Linux or Mac, it won't be used. The age of the MS monopoly is coming to an end finally, MS is just blind to it.

Re:MS doesn't get it

[Anonymous Coward]

We aren't interested in letting you become gatekeepers for our entire lives.

No, it's you who doesn't get it.

Who cares if MS delivers crap? All they need to do is find a way to shut down your access to anything else. They eat creative people for lunch. This isn't going to be decided by who's "best" but by who's the last man standing. Because you are a Windows / Office customer, MS can afford BILLIONS to wipe out everyone else.

Re:MS will fail

[bigstrat2003]

second party in the case of Halo 3

Bungie is second-party now, they weren't at the time they made Halo 3.