Chris Lanier's Blog : Xbox

Going Beyond The Enthusiast Market

chrisl — Sun, 23 Aug 2009 01:59:00 GMT

Charlie Owen, a former Media Center team member wrote a post this week about Media Center expanding its marketplace, specifically going from the current enthusiast market to a more mainstream market. Charlie analysis comes to the pretty simple answer of “It's possible, but highly unlikely at this point.”

I had previously come to this conclusion, but to me the real question is “will Microsoft attempt to develop for the enthusiast market?” Lucky for me, Charlie replied to my comment with exactly what I was expecting

Charlie: “No. That's because they have never done so. The enthusiast market is always a subset of the overall market any product targets. Put another way: Where the goal is making a profit you wouldn't sacrifice a broad market opportunity of 100 for the narrow enthusiast market of 10. Making a Microsoft-sized profit is different than making a profit if you were a much smaller company.”

In other words the future for Media Center is one or two options. Option 1: Microsoft stops development of Media Center (very unlikely). Option 2: Microsoft transitions Media Center to a market which has the possibility to create a “Microsoft-sized profit.” (Hint: TV on your PC) Re-quoting myself from early this year, the days of Media Center being billed as the do-it-all center of your home are over.

My opinion continues to be that Microsoft will focus more and more on the Xbox 360 as the center of the home. The benefits of the Xbox 360 over Media Center are almost endless from a business perspective. The massive amount of end users (an unquestionable 30 million, with 20 million of them being Xbox Live subscribers) means content providers are going to flock to the platform. Microsoft can sit back and rake in yearly recurring revenue from these 20 million Xbox Live subscribers along with the massive amounts of licensing accessories and the Xbox 360 brand. Media Center on the other hard makes Microsoft absolutely no money as it is a part of the standard Windows SKU (eg. No one except members of The Green Button ever purchased a Windows license just to get Media Center).

There are still people holding out hope for Media Center to become a platform for the home. The recent announcement that Dish Network will not be shipping their tuner anytime soon didn’t surprise me one bit. Why would Dish bother to continue with Media Center when it is pretty clear Microsoft is moving away from the consumer they thought they were buying into? This same concept is at play with Media Center Extender’s. There is still some hope that Toshiba will be releasing an Extender, but I think the concept that most people miss is that whether it gets released or not means little in the grand scheme of things. If Microsoft’s heart is not in providing a platform for the home, you can really know going into your purchase that you’re going to end up disappointed at some point.

The biggest question mark might be Windows Home Server. For years I have said the concept of including Media Center in Windows Home Server is pointless and does nothing to expand the current market. If HP ditched Extender’s and CableCARD due to poor sales, why exactly would they have the least bit of interest in shipping a Media Center+Home Server box? If OEMs are not interested, why is Microsoft going to develop it?

Most people underestimate the OEMs when talking about Media Center. OEMs are really responsible for Media Center from start to finish from a customer’s perspective. HP and Dell have shown they have little interest in Media Center by either discounting CableCARD PCs, killing off Extender’s, and even in HPs case killing off their HT-styled z-series Media Centers. Dish Network and DIRECTV are just as important and have shown that they are increasing less interested.

Microsoft’s latest attempt to make a market for Media Center has been the custom integrator channel, and some have big expectations for what Microsoft might have in store. Sadly most of the possibilities have already been proven false, and based on what I’ve been told from those in the industry interest in Media Center in the custom channel is dropping fast. I’m interest to see how much longer Microsoft attempts to push into the market. With their partner OEMs such as HP, Linksys, Dish Network pulling out these leaves the custom OEMs like Niveus Media and Life|ware to pick up the slack. Unfortunately there is only such much they can do. If Microsoft’s commitment in the channel falls it might be the end of the custom market experiment.

So once again the question is what’s next. Recently there have been some great new bloggers show up in the Media Center community with some great suggestions. I’m done with suggestions. Microsoft knows exactly what we want, let’s not pretend they don’t. The issue is it is no longer in their best interest to pursue most of it. What’s next? Who knows. All I want at this point is for Microsoft to publicly provide a roadmap for what Media Center is to become.

Xbox Unveils Entertainment Experiences That Put Everyone Center Stage

chrisl — Mon, 01 Jun 2009 19:29:00 GMT

Microsoft rewrites the rules on fun with controller-free entertainment, Facebook for your TV, plus instant on 1080p HD streaming video.

LOS ANGELES — June 1, 2009 — The future of home entertainment has a new name: Xbox 360. Today, Microsoft Corp. opened the Electronic Entertainment Expo (E3) with a historic Xbox 360 briefing that rocked, tweeted, revved and awakened the world to a new era of fun and entertainment. In addition to premiering 10 exclusive new games, revolutionizing the way we watch TV, and making it easier than ever to connect to friends, Xbox also welcomed visionary filmmaker Steven Spielberg to introduce “Project Natal” and controller-free gaming.

“Today with cultural visionaries at our side and controller-free gaming on our horizon, Xbox 360 authored a new page in home entertainment history,” said Don Mattrick, senior vice president for the Interactive Entertainment Business at Microsoft. “For us, this E3 is about breaking down barriers — between generations, between games and entertainment, and most important, between video game players and everyone else — in a way that only Xbox 360 can.”

During its briefing, Microsoft showed why Xbox 360 continues to defy industry sales trends. First: A lineup of blockbuster games to ignite every passion, including “Forza Motorsport 3,” “Alan Wake,” “Halo 3: ODST” and “The Beatles: Rock Band.” Next? A host of groundbreaking Xbox LIVE services, from instant on 1080p HD streaming movies and television to Facebook and Last.fm tailor-made for your TV. And rounding it all out, “Project Natal,” a whole new way to play, no controller required.

“Project Natal”: No Strings (or Controllers) Attached

Unveiled for the first time to the public was “Project Natal,” pronounced “nuh-tall” and a code name for a revolutionary new way to play, no controller required. See a ball? Kick it, hit it, trap it or catch it. If you know how to move your hands, shake your hips or speak, you and your friends can jump into the fun. The only experience needed is life experience.

Compatible with any Xbox 360 system, the “Project Natal” sensor is the world’s first to combine an RGB camera, depth sensor, multi-array microphone and custom processor running proprietary software all in one device. Unlike 2-D cameras and controllers, “Project Natal” tracks your full body movement in 3-D, while responding to commands, directions and even a shift of emotion in your voice.

In addition, unlike other devices, the “Project Natal” sensor is not light-dependent. It can recognize you just by looking at your face, and it doesn’t just react to key words but understands what you’re saying. Call a play in a football game, and players will actually respond. Want to log onto Xbox LIVE? Simply step in front of the sensor.

“The next step in interactive entertainment is to make the controller disappear,” said Steven Spielberg, visionary director and producer. “With ‘Project Natal,’ we’ll see games that bring everyone together through technology that actually recognizes us.”

The Best of the Internet, Custom-Made for Your TV

Groove, party or connect with a friend. Xbox LIVE, the world’s largest social network on TV, today announced that Facebook and Last.fm would be tailor-made for your TV, only on Xbox 360. Microsoft also announced Xbox LIVE Party for movies, which allows movie experiences to be shared — on the couch or across the country over Xbox LIVE in supported movies.

“We are always asking ourselves how to make the TV more social,” said John Schappert, corporate vice president of Interactive Entertainment LIVE, Software and Studios at Microsoft. “By bringing Facebook, Last.fm and Xbox LIVE Party for movies and TV shows to Xbox LIVE, we’re not only extending the walls of your living room beyond your home to your friends in different corners of the world, we’re creating the definitive social network, uniting more than 200 million people to share status updates, pictures, thoughts on music and the world’s best online gaming experience.”

The addition of Facebook to Xbox LIVE means friends are always connected, anytime, anywhere — from virtually any couch. But updating your status and sharing photos won’t be the only things you can do. Using Facebook Connect, you can share your greatest moments in gaming by posting updates and screenshots from supported games directly to Facebook. Don’t let your moment of glory fade away — make sure everyone sees it with Facebook Connect, starting with the future version of the premier EA SPORTS golf franchise “Tiger Woods PGA TOUR^®.”

A first for TV, Last.fm,¹ part of the CBS Interactive Music Group, will give Xbox LIVE subscribers access to millions of songs streaming through Xbox 360 to the best speakers in the house. Xbox LIVE subscribers will be able to create their own free, personalized radio stations and listen to them with friends in the living room or across the country.

Xbox 360 also solidified its place as one of the leading social entertainment networks by announcing Xbox LIVE Party for movies. Go to the cinema with your friends whether you are sitting on the same couch or in living rooms across the country. Starting this year, you can share a virtual theater, see your avatar (a virtual you) on the screen, all while you listen to each other laugh and cry at the movie through voice chat on Xbox LIVE. With movie parties, the only thing you can’t share is the popcorn.

Read Full Press Release

Microsoft Connects the Dots with Zune HD, Zune Marketplace, and Xbox

chrisl — Fri, 29 May 2009 14:48:00 GMT

This week Microsoft took the wraps off the next Zune, dubbed Zune HD. It seems to be your basic next-generation touch screen only media player with the common additions of WiFi and an web browser (IE based). There are some other interesting parts such as a HD Radio tuner, an OLED screen, multitouch, and even HD output at 720p via a dock.

The most interesting part of the announcement is not the device, but rather the service. The Zune Marketplace will now integrate with the Xbox LIVE Marketplace, finally drawing a realistic picture of Microsoft’s “3 screen” vision of the future. Getting the most press is the HD Radio tuner, the non-HD resolution of the OLED screen, and the concept of Microsoft competing with the iPod touch.

HD Radio tuner doesn’t do much for me, it will give people a chance to explore something they likely have never heard of before, and apparently the FM radio tuner has been a big selling point among existing Zune buyers. The resolution on the OLED screen is only 480x272, which many have noted is not even close to HD. I’m not really sure why people think they need 1080p on a portable player, the lower resolution screen likely benefits the majority of people who put low-bitrate and resolution content on the device in the first place. If you have HD content, the dock now outputs 720p over HDMI. The big question in terms of resolution is actually what codec’s and resolutions it supports syncing. If it supports all popular codecs and HD resolutions, that means I can sync without transcoding.

I have never seen the Zune as a good competitor to the iPod, I don’t feel much different about this one. Microsoft is still playing catch-up here by connecting their services. This is something Apple has mostly had for years. Within the next 2-3 years I can finally see the landscape start to change a bit, but Microsoft is going to have a very hard time going after Apple when you compare numbers.

Lacking is any mention of Media Center, which wasn’t a shock to me personally. I firmly believe Microsoft has moved on from what most reading this wanted Media Center to be, and of course for years I’ve said the Xbox was the real competition to Media Center (this will become much clearer as we go on). Connecting the Xbox, Zune, and Windows finally makes all of the products marketable. Microsoft also just announced that Xbox 360 has sold 30 million units and has 20 million on Xbox LIVE.

A few have noted that all the details have not been released and that Media Center integration could still be there. I don’t anticipate it, but would welcome it. I doubt we will see this act as a Media Center Extender as many have wanted. If Microsoft could of improved anywhere in the Zune-Media Center connection I hope it was with syncing content, mainly TV. The Zune does support syncing TV, but it doesn’t support anything copy protected (CableCARD, likely any future premium Cable/Sat services), and also doesn't support syncing content with Dolby Digital audio. If this stays true just about the only TV content the Zune can sync (in the US) will be analog cable/satellite captures. Even OTA content will be purely Dolby Digital next months, so even your favorite local channels will not sync unless Microsoft decides to change.

Xbox 360 Sees Record Growth in 2009

chrisl — Thu, 28 May 2009 13:12:00 GMT

Year-over-year growth jumps as Xbox 360 console sales hit 30 million globally and Xbox LIVE community reaches 20 million users.

REDMOND, Wash. — May 28, 2009 — Microsoft Corp. announced today that sales of Xbox 360 consoles have passed the 30 million mark globally, with its Xbox LIVE community swelling to more than 20 million active members. After the biggest year in its history in 2008, Xbox 360 achieved the highest percentage growth in hardware sales of any console so far in 2009, up 28 percent over the previous year.¹

The success of the platform can be measured across the business, with Xbox LIVE now considered the world’s largest global entertainment network. Increasing consumer desire to connect with friends, download and enjoy blockbuster movies and TV shows, and extend the life of their favorite games has been the primary driver behind the growth of Xbox LIVE membership and the reason Xbox continues to expand offerings on the platform.

“We’ve always been confident that Xbox 360 offers more entertainment value than any other console on the market, and these latest numbers show that consumers agree,” said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft. “We expect our growth to continue to accelerate. Our news at E3 next week will underscore our commitment to bringing blockbuster entertainment experiences to everyone and to growing the Xbox entertainment brand globally.”

Over the course of this console generation, U.S. consumers alone have spent $14.5 billion across all categories on Xbox 360 at retail.¹ This number reflects strong interest in a comprehensive entertainment offering that includes the ability to connect with others socially and to digitally download entertainment, be it games, TV shows or movies. To date, consumers have downloaded nearly 1 billion pieces of gaming and entertainment content from Xbox LIVE Marketplace, including a broad array of premium high- and standard-definition movies and TV shows from top studios and networks around the world.²

In addition, Xbox 360 continues to be the platform of choice for the industry’s top games, generating $5.9 billion in sales to date at U.S. retail for third-party publishers, which is more than those of current-generation consoles combined.¹ Xbox 360 also leads current-generation consoles in game purchases, with consumers owning an average of 8.3 titles each.¹

Activity on Xbox LIVE, the industry-leading online gaming and entertainment service, surged following the launch of the New Xbox Experience in November 2008. Since that time, the community has recorded a 136 percent increase in new members, TV and movie downloads have more than doubled, and purchases of games, Game Add-ons and more on Xbox LIVE Arcade have increased by 70 percent.² Xbox LIVE reaches 26 countries worldwide and is now in more homes than any satellite television provider.² Before the end of the year, the number of Xbox LIVE members will surpass the number of subscribers to the largest cable provider.¹ Consumers can expect more exciting announcements from Microsoft next week as Xbox 360 kicks off the Electronic Entertainment Expo (E3), the world’s premier trade show for computer and video games and related products, with its press briefing on Monday, June 1, in Los Angeles.

About Xbox 360

Xbox 360 is a premier video game and entertainment system. It is home to the best and broadest games plus more entertainment than any other device connected to the TV. The digital center of the living room, Xbox 360 blends unbeatable content, including personal pictures and music, with a unified online social network to create a limitless entertainment experience that can be shared at home or across the globe. More information can be found online at http://www.xbox.com/xbox360.

About Xbox LIVE

Xbox LIVE is the most comprehensive gaming and entertainment network connected to your television, delivering the largest movie, TV music and gaming library on a single device, and instant access to select movies and TV shows.

With an active community of more than 20 million people across 26 countries, Xbox LIVE brings friends together — from the same living room or around the globe — to share the best in home entertainment. With an Xbox LIVE Gold Membership, enjoy exclusive benefits and premium access to movies, music, TV and games from the top studios and services, all in one place. More information can be found online at http://www.xbox.com/en-us/live.

Microsoft Announces the Expansion of the Zune Entertainment Service to New Platform and Markets; Confirms New Zune HD Portable Media Player

chrisl — Wed, 27 May 2009 03:24:00 GMT

Premium Zune digital entertainment service to be available internationally on Xbox LIVE.

REDMOND, Wash. — May 26, 2009 — Microsoft Corp. today announced the evolution of Zune, the company’s end-to-end music and entertainment service, to a new platform and new markets. Zune will extend its video service to Xbox LIVE internationally this fall. This marks an important development in the Zune strategy and brings the Zune brand to more than 17 million international Xbox LIVE subscribers. In addition, Microsoft confirmed the next generation of the Zune portable media player, Zune HD. Available in the U.S. this fall, Zune HD is the first portable media player that combines a built-in HD Radio receiver, high-definition (HD) video output capabilities, organic light-emitting diode (OLED) touch screen, Wi-Fi and an Internet browser.

“The Zune music player is an integral part of the overall Zune experience, and we’re proud to be growing and extending our offering beyond the device,” said Enrique Rodriguez, corporate vice president of the Microsoft TV, Video and Music Business Group. “Delivering on Microsoft’s connected entertainment vision, this news marks a turning point for Zune as it brings cross-platform experiences and premium video content to living rooms around the world.”

Zune Service Expands to New Platform

Zune will be a premium partner in the Xbox LIVE Video Marketplace, bringing an exciting catalog of TV and film to the platform. Zune will occupy the first slot within the Xbox user interface in the Xbox LIVE Video Marketplace, exposing the Zune brand experience to millions of new consumers for the first time. At the Electronic Entertainment Expo (E3) next week, attendees will see firsthand how Zune integrates into Xbox LIVE to create a game-changing entertainment experience.

Introducing Zune HD

Zune HD is the next iteration of the Zune device family and brings a new level of listening and viewing experiences to the portable media player category.
Zune HD comes with a built-in HD Radio receiver so users can listen to higher-quality sound than traditional radio on the go. Users also will have access to the additional song and artist data broadcast by HD Radio stations as well as additional channels from their favorite stations multicasting in HD. If you don’t like the song playing on your station’s HD channel, switch to its HD2 or HD3 channels for additional programming.
The bright OLED touch screen interface allows users to flip through music, movies and other content with ease, and the 16:9 widescreen format display (480x272 resolution) offers a premium viewing experience on the go.
The HD-compatible output lets Zune HD customers playback supported HD video files from the device through a premium high-definition multimedia interface (HDMI) audiovisual docking station (sold separately) direct to an HD TV in 720p.*
Zune HD will include a full-screen Internet browser optimized for multitouch functionality.
Zune HD is Wi-Fi enabled, allowing for instant streaming to the device from the more than 5 million-track Zune music store.

Xbox LIVE Primetime Channel Brings Interactive Gaming/TV to Xbox 360

chrisl — Thu, 08 Jan 2009 02:46:00 GMT

Developing….

“new interactive entertainment genre with the premiere of the Xbox LIVE Primetime channel, which brings together the best of TV and gaming. Xbox LIVE Primetime will debut with an online version of the popular TV show “1 vs. 100” that enables thousands of gamers to play together with real hosts and compete for real prizes."

Xbox 360 Records Its Biggest Year Ever

chrisl — Thu, 08 Jan 2009 01:14:00 GMT

Driven by record sales at retail along with an 84 percent jump in online consumer spending; global install base lead over PlayStation 3 expands to more than 8 million units.

REDMOND, Wash. — Jan. 5, 2009 — Despite a tough economy, the gaming industry held strong in 2008 and Microsoft Corp.’s Xbox 360 video game and entertainment system recorded the biggest year in Xbox history, with more consoles, games and online entertainment experiences sold than any previous year. It was a year in which life-to-date unit sales of Xbox 360 systems climbed to 28 million consoles worldwide — expanding the product’s lead over Sony PlayStation 3 to more than 8 million units. The Xbox LIVE community also grew to more than 17 million active members, as online consumer spending increased 84 percent from last year. Since the launch of the Xbox 360 three years ago, more than $1 billion has been spent on Xbox LIVE. This amazing growth was fueled by the launch of the New Xbox Experience¹; the broadest selection of hit games, TV shows, and movies available; and mass-market price points, starting at $199.

Xbox 360 is experiencing record-setting sales around the globe, particularly in Japan and Europe, nearly doubling market share in these key territories. In Europe, the Middle East and Africa (EMEA) specifically, Xbox 360 has now sold more than 8 million units, extending its lead over the PS3 by more than 1 million units.

“For Xbox, 2008 will be remembered around the world as a pivotal growth year at retail and online — even in the face of tough economic conditions,” said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft. “Worldwide, a record number of players flocked to our broadest games and entertainment lineup ever, while the New Xbox Experience thrilled millions of fans by making our console even more engaging. And yet, we’ve only provided a glimpse into the new world of interactive entertainment that we’re imagining. The best of Xbox 360 is yet to come.”

One of the biggest trends in 2008 was consumers taking advantage of the convenience and value with digital distribution of games and entertainment content. One of the most popular offerings this holiday was Netflix on Xbox 360, which as a Netflix member provides users with access to unlimited viewing of more than 12,000 movies and TV shows in DVD quality as well as many in high definition.² In addition, Xbox LIVE is home to the largest library of downloadable games, game add-ons, movies and TV shows.

Read Full Press Release

‘08 Disappointments: Xbox IPTV

chrisl — Wed, 24 Dec 2008 22:27:00 GMT

2008 was going to be the year of IPTV, and while AT&T and Verizon (actually QAM) have made great strides in the IPTV marketplace, Microsoft hasn’t done much to push what was promised on their end (Note: Microsoft powers AT&Ts IPTV DVRs). Of course the prime example here is the concept of using your Xbox 360 as an IPTV DVR.

The concept had been thrown around online for some time, but at CES 2008 Microsoft made it official and announced they were working with BT in the UK to bring the functionality to life. That’s about the last time I heard anything on that subject. I’m not sure if the service never launched with BT, but to say the concept has been anything but a failure would be pushing it.

AT&T is still the only [major] US provider using Microsoft’s MediaRoom IPTV software, which means they are just about the only option for this concept coming to life in the US. I don’t see the concept that appealing for IPTV providers (I actually said it would flop in Nov ‘07), but it will be interesting to see if CES 2009 brings anything about Xbox and IPTV back into the spotlight.

Xbox 360 Arcade Officially $200

chrisl — Wed, 03 Sep 2008 22:13:00 GMT

Microsoft has officially dropped the price of all Xbox 360 SKUs. The Arcade is now officially $200, or rather still the best value for an Extender if you can live without additional file format support and live with the fact that it has a fan.

My Twelfth Post on Xbox 360 Not Getting Blu-ray

chrisl — Wed, 16 Jul 2008 01:21:00 GMT

I never thought I would get a dozen posts out of this topic, but what do you know! Some said I was dead wrong when I predicted that Microsoft wasn’t planning on adding Blu-ray to the Xbox 360. After covering the issue from every different angle possible (Here, Here, Here, Here, Here, Here, Here, Here, Here, Here, Here) I still couldn’t come up with a good reason why it was in Microsoft’s best interest to add Blu-ray to the Xbox. It isn’t hard to come up with reasons why potential or existing Xbox 360 buyers want Blu-ray, but taking a Microsoft perspective is a bit different.

Cut to today, Forbes has a story that quotes Shane Kim, vice president of strategy and business development for Microsoft Entertainment division saying “I can categorically say that we're not working on a Blu-Ray player for Xbox 360.”

What is Microsoft’s focus? Digital distribution. As I’ve talked about either today Netflix adds just another option for downloads/streams on the Xbox 360 (but not Media Center Extenders) and while I don’t think Microsoft should just focus on digital distribution you know that is their goal and it isn’t going to change.

Short Bits: Netflix

chrisl — Tue, 15 Jul 2008 12:34:00 GMT

Yesterday Microsoft announced that they are partnering with Netflix to bring Netflix’s streaming content to the Xbox 360 Dashboard. What was not announced however is the same in Media Center. The good news is that Microsoft now has the backend to make it work. The bad news that knowing them Netflix streaming may never be ported to Media Center. Looks like the Xbox 360 Dashboard is still Media Center biggest enemy.

On the same Netflix partnership, I think people might be getting too worked up about the usefulness. While Netflix has a great amount of content that you have heard of and might want to watch, it is not going to replace you renting or buying new movies. Netflix content is really a complement to your Netflix subscription (movies in the mail), and not a pure streaming service. I feel like a lot of people are expecting this to change the world, and that's clearly not the goal of the partnership or Netflix streaming in general. This does give a better mix of content directly accessible via the Xbox 360 Dashboard, so if you already get movies this way it will be a very nice digital distribution mix.

Oh, and of course you need to be an Xbox Live Gold member ($60/year) to get access. If you are a Media Center user something like vmcNetflix might be your best bet. Bottom line, great news but I don't think this is going to change the world or make as big of a splash as some seem to be expecting.

New Xbox Experiences Reinvent Home Entertainment, and Everyone Is Invited

chrisl — Mon, 14 Jul 2008 22:10:00 GMT

Xbox 360 promises best and broadest entertainment lineup ever; more fun, social and simple-to-use experience.

LOS ANGELES — July 14, 2008 — As Xbox 360 readies for the next wave of audience expansion, Microsoft Corp. today announced a new Xbox experience that will reinvent home entertainment from the inside out, changing the way we play games, watch movies and TV shows, and even become contestants in game shows. It all begins this fall with a bold new look and feel that is fun, social and simple to use.

The announcement was made during the E3 Media and Business Summit in Los Angeles. It came amid the unveiling of an exclusive partnership with Netflix Inc. that will give Xbox 360 users instant access to more than 10,000 feature films and television shows with a click of a button.

Also on the docket: The best and broadest entertainment lineup the Xbox 360 video game and entertainment system has ever seen. In its strongest broadening play yet, Xbox announced Xbox LIVE Primetime, the next evolution in game shows slated for Xbox LIVE this fall; TV shows and movies from world leaders in entertainment including NBC Universal, Universal Studios Home Entertainment, SCI FI Channel and USA Network domestically and Constantin and MGM internationally; and blockbuster games “Lips,” “Rock Band 2,” “Scene It? Box Office Smash,” “You’re in the Movies” and the much anticipated “Final Fantasy XIII.”

“We’re entering a new age in entertainment, and Xbox 360 is uniquely positioned to become the heart of the living room,” said Don Mattrick, senior vice president for the Interactive Entertainment Business at Microsoft. “The new Xbox experience offers more content than you can find from any device that connects to the television. That convergence of entertainment and gaming will bring new people and more families to the category, driving a record year for the games industry.”

“This year more than any other, Xbox 360 has something for everyone — whether you love playing games with friends or are simply looking for the best in entertainment,” Mattrick said.

Netflix Jumps In With Entertainment for Everyone

The exclusive partnership offers Netflix subscribers the ability to instantly stream movies and TV episodes from Netflix to the television via the Xbox 360 video game and entertainment system. Xbox 360 will be the only game console to offer this movie-watching experience, available to Xbox LIVE Gold members who are also Netflix subscribers at no additional cost.

From the Netflix Web site, subscribers simply add movies and TV episodes to their instant Queue, which will appear automatically on the TV screen via Xbox 360. Once selected, movies will begin playing in as little as 30 seconds. In addition to instantly streaming Netflix movies to the TV, Xbox LIVE Gold members can browse and rate movies, fast-forward, pause and rewind, all using either their Xbox 360 Controller or remote.

Netflix on Xbox 360 will launch this fall with the release of the new Xbox experience, a new generation of games and entertainment experiences that will be available for Xbox 360 this fall.

The New Xbox Experience

The new Xbox experience represents the first time in history that a mass market consumer electronics device has been reinvented through free software, giving people more fun and intuitive ways to interact, play and enjoy entertainment.

“Xbox LIVE is the world’s fastest-growing online social network on TV,” said John Schappert, corporate vice president of Interactive Entertainment LIVE, Software and Services Business at Microsoft. “We doubled our membership the past two years, growing from 3 million to 6 million, and then from 6 million to 12 million. And today, we are adding a new member every five seconds. With the best and broadest social entertainment experiences launching this fall, the future is limitless.”

Some of the features that make the new Xbox experience groundbreaking are the following:

Read Full Press Release

Microsoft and Netflix Unveil Partnership to Instantly Stream Movies and TV Episodes to the TV via Xbox LIVE

chrisl — Mon, 14 Jul 2008 22:08:00 GMT

Exclusive agreement creates game-changing home entertainment experience; more than 10,000 movies and TV episodes will be available to watch instantly at no additional cost to paying subscribers.

LOS ANGELES — July 14, 2008 — An exciting new home theater experience is coming to living rooms this holiday season. At the E3 Media and Business Summit, Microsoft Corp. (Nasdaq “MSFT”) and Netflix, Inc. (Nasdaq: NFLX), the world’s largest online movie rental service, today unveiled an exclusive partnership to offer consumers the ability to instantly stream movies and TV episodes from Netflix to the television via the Xbox 360 video game and entertainment system. Xbox 360 will be the only game system that lets users instantly watch movies and TV episodes streamed from Netflix. This movie watching innovation will be available to Xbox LIVE Gold members who are also Netflix subscribers and will let those users enjoy streaming movies from Netflix on Xbox LIVE at no additional cost.

A growing library of more than 10,000 movies and TV episodes will be available from Netflix when it launches on Xbox LIVE in late fall, with more choices added over time. Through this agreement, along with the existing Xbox LIVE Marketplace Video Store, Xbox 360 will be home to more movies and TV shows on demand than any other device connected to the TV. Xbox LIVE quickly and easily connects consumers and their friends to the entertainment they want — with no PC required for viewing.

Netflix on Xbox 360 is an important component of the new Xbox experience, a new generation of games and entertainment experiences that will be available on Xbox 360 consoles this fall. The new Xbox experience, also announced today at the E3 Media and Business Summit, represents the first time in history that a mass-market consumer electronics device has been re-invented through free software, giving people more fun and intuitive ways to interact, play and enjoy entertainment content.

“Watching movies at home will never be the same. Netflix on Xbox 360 is an entertainment first, and we are bringing friends together with the best in entertainment content like no other device in the living room,” said John Schappert, corporate vice president of Interactive Entertainment LIVE, Software and Services Business at Microsoft. “We are creating a completely new social entertainment experience, and Xbox 360 will be the only video game system where you can access your library of instantly streamable movies from Netflix and turn any room into a virtual movie theater.”

From the Netflix Web site, members simply add movies and TV episodes to their individual instant Queues. Those choices will be automatically displayed on the TV screen via Xbox 360 and available to watch instantly. Once selected, movies will begin playing in as little as 30 seconds. In addition to instantly streaming movies to the TV, Xbox LIVE Gold members can fast-forward, pause and rewind, all using either their Xbox 360 Controller or Media Remote. In all, the user interface creates a highly personalized experience that puts viewers in control.

“Netflix and Xbox 360 are a perfect combination, the leading online movie rental service and the leading games and entertainment system joining forces to create an all-in-one entertainment experience with content for everyone,” said Reed Hastings, chairman and CEO of Netflix. “For Netflix, it represents an important step forward in making instantly streaming movies on the TV more broadly available to our members.”

The library of movies and TV episodes that will be available for instant streaming from Netflix via Xbox 360 includes scores of Academy Award winners and nominees, episodes from a number of popular, currently running and classic TV shows, and 24 of the movies rated by the American Film Institute as the greatest ever.

Today, Xbox LIVE members can also download movies and purchase TV shows from the industry-leading Xbox LIVE Marketplace Video Store, currently packed with content from more than 45 networks and studios. The Xbox LIVE Marketplace Video Store offers more than twice the high-definition content than the nearest cable provider and more than 6,000 hours of TV shows and movies.

Xbox 360 Console Now Offers Triple the Storage for Same Price

chrisl — Sun, 13 Jul 2008 14:09:00 GMT

60GB storage now included with Xbox 360; 20GB console will drop to $299.99 in U.S. and Canada.

REDMOND, Wash. — July 13, 2008 — Microsoft Corp. is giving consumers more gigabytes for their buck. The company today announced an Xbox 360 console with triple the storage space of the original console, but for the same price of $349 (U.S.) estimated retail price (ERP).

Available in retail stores in the U.S. and Canada starting in early August, the upgraded Xbox 360 will include a 60GB hard drive for storing the growing wealth of digital entertainment available for the console, including music, movies, television shows and game content. In addition, Microsoft today dropped the price of its 20GB Xbox 360 console in the U.S. and Canada to just $299 (U.S.) (ERP) while supplies last, a savings of $50.

“We know consumers need more and more space to store the amazing digital content Xbox 360 offers, and we’re giving it to them at no extra charge,” said Albert Penello, Xbox director of product management at Microsoft. “No one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you’ll have three times the storage to manage all that great content.”

Xbox 360 is just one of three Xbox 360 gaming and entertainment systems Microsoft offers. Microsoft’s Xbox 360 Arcade, which comes with a 256MB memory unit and five Xbox LIVE Arcade games, is a value for the whole family for $279 (U.S.) (ERP), and the premium Xbox 360 Elite console is available with a 120GB hard drive for $449 (U.S.) (ERP).

Out of the box, the Xbox 360 console is ready to provide an incredible gaming and entertainment experience:

Xbox 360 console. The console is equipped with a cool white finish and three powerful core processors capable of producing the best in high definition (HD) entertainment (up to 1080p for gaming), 16:9 cinematic aspect ratio, anti-aliasing for smooth textures, full surround sound, and high-definition multimedia interface (HDMI) output.
60 GB Hard Drive. The 60GB detachable hard drive allows gamers to save their games and store television shows, movies, music, pictures, trailers, levels, demos and other content available from Xbox LIVE Marketplace, the premier one-stop digital download center for entertainment.
Upscaling DVD Player. With an HDMI cable (sold separately), watch your favorite DVDs in near high-definition using the upscaling capabilities of Xbox 360.
Xbox 360 Wireless Controller. This award-winning, high-performance wireless controller features the Xbox Guide Button for quick, in-game access to friends and music. It has a range of up to 30 feet and a battery life of up to 30 hours on two AA batteries.
Xbox 360 Headset. The headset lets friends and family around the world chat while playing games, watching movies, or sending voice messages on Xbox LIVE.
Xbox LIVE Silver Membership. For no additional cost, Xbox 360 owners can chat with friends online, collect Achievements to improve their Gamerscores, send and receive voice and text messages, and access Xbox LIVE Marketplace content such as game demos, and purchase or rent HD movies and TV shows, as well as the best in downloadable games from Xbox LIVE Arcade. (Broadband Internet access required.)
One-month subscription to Xbox LIVE Gold. An Xbox LIVE Gold Membership provides a complete online entertainment experience. Those who subscribe to this premium service can engage in competitive online multiplayer matches, tailor their matchmaking via feedback and accomplishments, and chat with an entire group of friends at a time.

About Xbox 360

Xbox 360 is a superior video game and entertainment system delivering the best games, unique entertainment features and a unified online gaming network that revolve around gamers. Xbox 360 has a portfolio of nearly 400 games in 37 countries. More information can be found online at http://www.xbox.com/xbox360.

Bach Says No to Blu-ray in Xbox 720, First Party ZunePhone

chrisl — Sun, 08 Jun 2008 23:39:00 GMT

We don’t even have to wait until tomorrow to find out that the Xbox 360 isn’t getting Blu-ray. Why? Because Robbie Bach was asked if Microsoft had plans for Blu-ray to appear in the next generation Xbox (Via Engadget) and answered “No. There is nothing to even talk about right now with regard to the next generation. That is so far out that there isn't anything to talk about.” Now I’m sure some of you will tell me that he didn’t deny Xbox 360 with Blu-ray and instead just talked about the next generation, but trust me Blu-ray is not coming to the Xbox 360 tomorrow or anytime soon. He also touches on Xbox 360 lasting longer than the previous Xbox as I also talked about today.

Robbie also went on record again saying the ZunePhone (eg. first party hardware) isn’t happening, but does suggest that a Phone+Zune software might be on the way as I suggested a few months ago. I can actually say it will be happening and that I know Microsoft is currently trying to get OEMs on board. The Zune software (or a variation of it) will appear on several different OEMs handsets. Not sure if it will just be Windows Mobile, but I’d love to see them open it up to other platforms.

Lastly on the mobile side, Bach said “We don't make phones ourselves. We don't have any plans to make phones ourselves” which I thought was interesting considering Microsoft now owns Danger. Danger isn’t a hardware company per-say, but I guess it can shine a bit of light on what Microsoft isn’t planning to do with their new acquisition.

No, Xbox 360 Isn’t Getting Blu-ray on Monday

chrisl — Sun, 08 Jun 2008 15:43:00 GMT

Another day, another horrible rumor. Microsoft will not announce that the Xbox 360 is getting Blu-ray on Monday.

This latest rumor does give me a good chance to cover Shane Kim of Microsoft Game Studios saying the Xbox 360 is set to last seven years. This would clearly go against what I’ve been saying about the shelf life of the Xbox 360 playing into Blu-ray considerations, so I’ll admit that I’m wrong on that front. That said, I still don’t see an Xbox Blu-ray addition near-term.

If they are going to stick with the Xbox 360 and focus on games, the community aspect, media downloads, etc then a Blu-ray Disc drive still doesn’t fit into their plans. An internal drive isn’t can’t be used for games, an external drive is not going to allow the Xbox 360 to compete with the price of the PS3. There is still little advantage from Microsoft’s perspective to do Blu-ray in the Xbox 360.

Console design and graphics are getting to the point where the Xbox 720 will most likely not blow you away in comparison to the Xbox 360. What has more chance of bringing in gamers are new experiences, which is why you will see that Xbox motion sensing controller before year’s end. On the media side, downloads are still Microsoft’s business more than ever, Blu-ray isn’t.

Update: Bach says no Blu-ray on Xbox 720

Xbox 360 First Gaming System to Reach 10 Million in U.S. Console Sales This Generation

chrisl — Wed, 14 May 2008 21:24:00 GMT

Xbox LIVE tops 12 million members globally as Xbox 360 console sales hit more than 19 million worldwide.

REDMOND, Wash. — May 14, 2008 — Microsoft Corp. today announced that the Xbox 360 video game and entertainment system has sold over 10 million units in the U.S., making it the first current-generation gaming console to break the 10 million mark in the U.S. The U.S. install base contributes to global sales of over 19 million, more than any other current-generation console.

“This year will be the largest in the history of the video game industry, with Xbox 360 leading the charge in the U.S. and abroad,” said Don Mattrick, senior vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. “History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

This announcement comes on the heels of one of the biggest entertainment launches in history, “Grand Theft Auto IV,” on April 29, 2008. Gamers eager to experience “Grand Theft Auto IV” online helped boost Xbox LIVE global membership to over 12 million this month. Fueled by an unparalleled combination of access to friends and family, the best online gaming features, and the best entertainment content, the Xbox LIVE service has doubled in membership in only one year’s time.

“Reaching an installed base of 10 million consoles in the U.S. is a significant achievement and an essential milestone on the road to market leadership,” said Billy Pidgeon, research manager at IDC. “Perhaps more important is the Xbox 360 worldwide online base — 12 million Xbox LIVE gamers is the largest community in the connected console games sector, which represents the greatest growth opportunity in the console market and where Microsoft has been the leader for two generations.”

Xbox 360 leads with the industry’s highest software attach rate, more than any other console this generation, and is home to the best-selling games. With the launch of “Grand Theft Auto IV” in April, Xbox 360 is now the home to more than 16 platinum titles that have sold through 1 million units or more, including hits such as “Halo 3,” “Madden NFL 07” and “Madden NFL 08,” “Gears of War,” “Guitar Hero II” and “Guitar Hero III: Legends of Rock,” and “Call of Duty^® 2,” Call of Duty 3” and “Call of Duty 4: Modern Warfare,” giving Xbox 360 two times more platinum-selling titles than the Wii and a 16:2 lead over the PlayStation 3 in game titles topping one million in sales. Games not only sell better on the Xbox 360, they play better, too: Xbox 360 has 91 titles with a Metacritic review score of 80 or higher, compared with just 22 titles for Wii and 50 titles for PlayStation 3.

About Xbox 360

Microsoft: “No Plans to Introduce a Blu-ray Drive for Xbox 360”

chrisl — Mon, 05 May 2008 18:12:00 GMT

I hope you didn’t really think Microsoft was doing an Xbox 360 with Blu-ray, because they are once again denying it. So, what do you think is really going on?

These sites are flat out making up the rumors to drive web traffic
OEMs think constant reports will help get them a contract, suggesting they would be able to provide the drives at $xx to Microsoft.
Microsoft has expressed interest in Blu-ray Disc drives for the Xbox 360, reports are truly leaking out.
Microsoft has expressed interest in Blu-ray Disc drives for the “Xbox” (360 not implied, meaning it could be Xbox 720).
Other – Let me know

Why I’m I Still Posting About Xbox 360 With Blu-ray?

chrisl — Sun, 04 May 2008 20:21:00 GMT

Previous coverage: Here, Here, Here, Here, Here, and Here.

Latest rumor, ASUS subsidiary Pegatron has reportedly won the contract to “assemble the Xbox 360 with Blu-ray Disc ROM drive” according to Economic Daily News (Chinese).

I’ve covered the Xbox 360 Blu-ray rumors since they started, and I think I’ve made my case pretty clear. In my opinion it doesn’t make sense for Microsoft to include Blu-ray in the Xbox 360. It doesn’t make sense for Microsoft to even offer an external Blu-ray drive. If doesn’t even really make sense to do a single new SKU for Blu-ray, but lets look at it from another angle. Forget the technical aspect, forget what Microsoft wants or doesn’t want, let’s look at it from the consumer aspect and from Microsoft's price perspective.

External Blu-ray Scenarios

(I’m blindly assuming that Microsoft would sell an external Blu-ray Disc drive for $150, which would most likely be a loss for Microsoft. Remember that HD DVD originally shipped for $200 with Toshiba taking the huge loss. Other HD DVD drives where shipping for $300+ at the time. This only takes into account drive prices, loss on the software/licensing side not included.)

Playstation 3 40GB (include Blu-ray) = $400
Playstation 3 80GB (includes Blu-ray) = $500
~~Xbox 360 Arcade ($280) + External Blu-ray Disc Drive ($150) = $430~~
Xbox 360 Premium 20GB ($350) + External Blu-ray Disc Drive ($150) = $500
Xbox 360 Elite 120GB ($450) + External Blu-ray Disc Drive ($150) = $600

Once again, the Xbox 360 Arcade is targeted at casual gamers, so I’m going to leave it out of the picture (but note the total price is still more than a PS3). I’d also remind everyone that specs are the only thing that matters. Everyone keeps telling me Microsoft needs Blu-ray to compete with the PS3. Unless you’re matching the basic specs, you’re not competing.

This means you can get a PS3 with double the hard drive space for $100 cheaper. Point goes to the PS3 if you are talking about competing. You don’t gain anything by offering an external Blu-ray Disc drive, the PS3 is still a better deal all around.

For current Xbox 360 owners the concept of an external Blu-ray Disc drive is the most appealing. Even at $200 it would be the cheapest Blu-ray Disc Player on the market, but why exactly does Microsoft care about this situation? It doesn’t boost Xbox 360 sales, and they are most likely losing money on the drive to start with. I understand why current owners would be interested, but it just doesn’t benefit Microsoft at all.

Internal Blu-ray Scenarios

Considering the Xbox 360 Arcade is again targeted to casual gamers, the chance of Microsoft integrating Blu-ray into it doesn’t exist. UNO and Pac-Man players generally are not Blu-ray owners.

Microsoft already needs to upgrade the Premium to a larger hard drive to directly compete with the PS3 at its 40GB entry price. Put a Blu-ray Disc drive in the current 20GB, sell it at a loss for $350 and the PS3 is still a better deal on paper. Point goes to the PS3.

Upgrade the Xbox 360 to at least 40GB and add internal Blu-ray (selling at a loss again) and the Xbox 360 would finally be able to compete directly. So far this is the only feasible option from a consumer perspective, of course that replies on Microsoft taking the hit for Blu-ray and upgrading the hard drive at the same time. If Microsoft ups the price (figuring 40GB and Blu-ray) your price would be equal to the 40GB PS3 (and I’ve covered reasons why the PS3 is a better Blu-ray Disc Player to start with).

The Xbox 360 Elite is supposed to be Elite, right? Is Microsoft going to alienate all Xbox 360 Elite owners by doing another SKU that is truly the Elite one? The one advantage the Elite has is the large hard drive, but once you cross the $500 price tag your product isn’t going to push any units. This would mean Microsoft takes the hit for the Blu-ray Disc drive and doesn’t pass any on the consumer. Not likely.

Exclusive Titles

None of the above takes into account people buying either the PS3 or Xbox 360 for exclusive titles. These people are going to get whichever system has their exclusive titles, matched features might sway them one way, but if Halo is your game then you are buying the Xbox 360 no matter what. If Grand Turismo is your game, your buying the PS3 no matter what.

Previous HD DVD Owners

A larger percent of the 300,000 people who purchase the external HD DVD drive still have a bad taste in their mouth. This might be eased by Blu-ray officially being the winner, but Xbox 360 Premium ($350) + Xbox HD DVD ($200) + External Xbox Blu-ray ($150) + Accessories = $700+ for a game console that is three years old (earliest release of such a drive would be years end, console turnover time has been around four years).

Growing User Awareness Against Xbox 360 with Blu-ray

The best part of all of these rumors is growing user awareness that the Xbox 360 with Blu-ray doesn’t make sense. Check out the comments on Engadget and Engadget HD, the vast majority of the comments (especially the ones ranked high) are going against buying, needing, or wanting an Xbox 360 with Blu-ray. Once again, I just don’t see how this would make any sense.

Console Redesigns

One of the newest ideas that has been thrown out is Microsoft including Blu-ray in the Xbox 360 when they really start the console redesign process to cut costs in manufacturing. I can see this happening if they are planning Blu-ray for the Xbox 720, but if they are not then I don't see why they would waste the time. As Blu-ray drives fall in price, they will become the standard. I don't think we are there just yet, but in another year or so the prices will be around of that OEM DVD drives today. If Microsoft is doing Blu-ray for the Xbox 720, you might as well throw it into the redeisgned Xbox 360 as well (unless they hold out and use Blu-ray as a feature to sell Xbox 720). At current prices this story is much different.

Update: Microsoft: “No Plans to Introduce a Blu-ray Drive for Xbox 360” (5/5/08)

Xbox 360 Blu-ray Shot Down Again By Microsoft

chrisl — Wed, 02 Apr 2008 23:03:00 GMT

You didn’t think Lite-On was really manufacturing Blu-ray Disc drives for the Xbox 360, did you? It doesn’t seem that Microsoft put too much stock into it, supposedly being quoted flat out with “No. Lite-On is not manufacturing Blu-ray drives for Xbox 360.”

~~The only thing that troubles me here is that TechRadar’s source is about as reliable as DigiTimes. An unnamed source saying this stuff doesn’t mean much, but whoever the “source” is~~ does seem to have a good understanding of what Microsoft wants to offer in place of Blu-ray; Digital downloads.

“As we have stated, games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster game available.”

Speaking in general (not exclusive to Xbox 360), Microsoft shouldn’t stick to digital downloads at this point because of bandwidth concerns, but it sure wouldn’t shock me if they stuck to that path. They can own everything from end-to-end, digital downloads are exactly what Microsoft wants.

Update: CED just published the same quotes that were directed at them from the Microsoft spokeswoman, so now I'm assuming this is a Microsoft official response.