Tag Archives: Don Mattrick

Microsoft Mattrick was not alone

Anyone who has any view on the gaming world, then that person might have heard about the Xbox One and also heard the scary announcements that were made by Don Mattrick. Views that had to be altered only 2 days after the E3, the most important event in the Gaming industry. Do not think it is a small geeky thing. The E3 is massive. The gaming industry has grown in 15 years from ‘sizeable’ into a multi-billion dollar industry, so those who are there are there for plenty of reasons. The E3 is next to Comic-Con seen as the place to be to bump into Hollywood stars. Funny part is that they get to revere the geeky guys who come up with games like Mario, Metal Gear Solid as well as leagues of sport stars when they announce the EA sport line.

In this environment the Xbox One was launched, and the following revolt by gamers all over the planet gave Microsoft the scare of their lives. As a result Microsoft did a 180 degree on their policy, giving their new console the nickname Xbox 180. That was not the end. Even though things are announced to be back to what they were, their market share is not. It is not unlikely that Microsoft is now at risk of losing 30% of their market share and most of that to Sony. That, in a multi-billion dollar industry is a lot, it could be the biggest drop in market share a main player has ever experienced by its own plans.

So the following news I saw today that Don Mattrick is leaving Microsoft for Zynga (the people behind Farmville), as I read it, I saw many messages drop by. Some making fun of Don, some leaving a ‘happy you leaving’ message to Don. Gamers can be so emotional!

http://www.forbes.com/sites/tomiogeron/2013/07/01/report-microsofts-don-mattrick-to-leave-microsoft-considering-zynga-role/

The reality is that this is far from over. Do you think that this is over? Do you think one man like Don Mattrick actually sets the trend to a market THIS BIG and you think he is alone? No, he took one for ‘the team’, and it likely comes with one hell of a golden parachute. You see, the picture that seems to be intentionally missed is that data gathering is big business. I am not talking about what the NSA might be doing. This is about market research, customer metrics and product predictions. Gathering certain key factors makes all the difference. That is the multi-billion dollar industry that Gamers are not interested in, but one that Microsoft is adding and as such the Xbox One is not a gaming console, but a Home entertainment system. It will be offering TV, Movies and games. All that info will help them finding the holes in what we desire and cashing in on it. Information that is worth millions! Now this data would be grabbed on a scale of many million consumers and on a global scale. The value that it would represent is beyond what you can imagine.

http://www.nytimes.com/2012/10/20/technology/microsoft-expands-gathering-and-use-of-data-from-web-products.html

So, I was not the first to state it, and I will not be the last. It is important that you realise that these claims do not come from some conspiracy theorist wannabee, but from Journalists working in some of the most renowned newspapers in the world.

So Don ‘you have to go on-line daily’ Mattrick is not alone in this game. To start this all with the Xbox one would have been only the start in achieving gathering on a much larger scale. That is how I see it, and that is also why interactivity with other devices was so important. The more interaction there is, the more complete the picture becomes. Smartglass is only one part of interaction, the fact that they are letting you interact with your home system with iPhone and iPad means that they would be getting even more of your available data.

Do not think I am just making this up. The privacy issues, as reported initially, were reported by IT experts in privacy in Germany and several other nations too, amongst them Peter Schaar who is in charge of Data protection and freedom of information in Germany. In the German magazine ‘der Spiegel’ he mentioned the dangers on privacy that the Xbox One could be. http://www.spiegel.de/netzwelt/games/ueberwachung-datenschuetzer-peter-schaar-kritisiert-microsofts-xbox-one-a-901893.html

Do not think that you are suddenly getting downloaded. No, that would be illegal! This will be a smooth transition over the next 2-3 years. By interacting you will get many cool little extra’s you normally would never have. Like movies behind the screens on your iPad (as they showed on CNet). Soon it will interact getting your mobile to Skype directly to TV, to switch information through your pictures and events. Before you know it, you will move all data to the cloud for ‘free’ backup services; you will only need to agree with the terms of service. That is when it will happen. A new form of business and it is enterprising on a new level. Where business sits in the centre of the web and we are all like a fly, just going into their web. We do this because of the benefits we are offered, like an exponential multimedia interacting form of Facebook. We by ourselves have no value, but their return comes a million fold as we all accept their terms and conditions as we are offered free extras.

Why is this situation so dangerous?

You see, initially we think that there is no difference, but consider that these numbers are all used to find the points of profit. Where we are subjected to what 98% likes. By that reckoning cult series that grew over time will now get cut suddenly or after a few seasons, as the results are not up to marketing standards. Consider that series like Firefly, Pushing Daisies, Veronica Mars, Jericho, Dollhouse, Heroes. These series got all cancelled on ratings. In the new set-up they could get cancelled in half the time. An interesting part is that the writers of Veronica Mars set up a kick-start event, and the funds for a third season were achieved in 10 hours and will launch early next year. So one in several series gets another shot after the ratings. What series will you lose because 98% prefers sports or Glee? You see artistic creativity is not about numbers. Remember, that because of fans the original Star Trek series got another season, now that series and what came after is now the biggest milk cow in the history of Paramount. There is no way that this could have been predicted.

We will miss out on series after series, limiting views and artistic growth, because it does not confirm to what people expected initially. It is not initially an issue for most, but these events will add up and we diminish ourselves accordingly. It is a danger I do not want to see, because those who will be given the power to decide will always act on greed. We have decades of evidence in that regard.

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Spin dryers by Microsoft

Some might have heard the news and some might not. Microsoft will be launching their new console by the end of this year. Sony will come with one too, but about that more at a later time.

So, I did watch the presentation, and it is not unlike an American based company to take on so much more than they are likely to chew when they go up against a population of gamers. This has been proven in several occasions and as such this moment was no different.

The new system is called Xbox One (sounds like a Star Wars episode copy).

This system is supposed to be the new revelations that evangelical gamers will pray too. Yet, this is no longer a gaming console. They now call it an all in one entertainment system.

It is a fair step to extend boundaries. Any business minded person will do that whenever possible. Yet, at this time, with the current available information, many wonder why things were not thought through on many levels is slightly baffling.

Even though Microsoft is releasing information on many planes, I would be in remiss if I did not mention that Gamespot (www.gamespot.com) is a massive centre player when it comes to console information, so they are an important source of information for all readers.

There is one part where Microsoft is right, and it is only fair I mention it. Microsoft’s Don Mattrick stated “If you’re backwards compatible, you’re really backwards.” I grant him that one. Even if I was opposed in the past, in combination with statements made from those who made the ‘promise’ at that point (a promise both Microsoft and Sony royally broke). Where we saw the Xbox 360 and PlayStation 3 to be required to be backwards compatible to PlayStation 2 and Xbox, is just not realistic to expect at this time. So, as such, I will agree on that, even if several gamers might not agree with me.

My first issue is with the hardware that is central to the new Xbox One. If this is supposed to be an all in one entertainment solution, always connected, always cloud ready for downloading of Movies, TV, Games and so on, then whomever lacked the synapses to decide on a 500 Gb drive had clearly been watching a little too many Xbox-Files (like the TV series from the 90’s with Box Mulder and Data Scully). Then 500 Gb would then have been mucho alien. Now, the difference between 500 Gb and 1 Tb is about $20, so when they state it cannot be upgraded, in a time when we are all overloaded with data, we should start asking serious questions. Their statement that we can add a USB3 drive just does not hold water. Consider that they called it an all-in-one entertainment system; consider that a Blue-Ray can contain up to 50 Gb and consider that the operating system and temporary files for this system takes up some space too. Then this system has space for 9 movies in high res (worst case scenario). Even less if we consider the need for our music on MP3, out private photo collection(s) and a few games, then this drive will be choc-a-block stuffed full really quickly.

In opposition, as a start, I might not object to a 500 Gb start. Yet, the non-upgrade limit means that we will need extra external drives; so in addition needing power, needing cables and one young player accidently yanking the wrong cable might make things go wrong fast. This is also the first of many points where your internet data plan will cut in (or cut out might be a better phrase). You see, data plans cost money, and considering the plans some are on now, then the added changes would also mean you might on average pay $30 a month extra to keep being online. So that goes towards $400 in extra costs each year (not including the annual fee for Xbox live). Mind you, this is the INCREASE, not the bare cost. In some cases some would go from $69 to $99 a month. That should go over well with the millions of students all over the globe who are already in dire need just to make ends meet. If you think that this is an exaggeration. Think again. The system that now boasts on 3D gaming possibilities will need data to get this all rolling out. So either you accept time for a dozen DVD’s to install, or you’ll have to get to the cloud. In addition, they might offer the ‘normal’ version on 1-2 DVD’s and the rest needs downloading. This is a bigger deal then you realise. For example, consider the option of starting World of Warcraft on the PC as a new gamer. It is really nice that they offer it for free to new gamers to try. I am honest; it is a really nice gesture. Yet the initial download is 22 Gb. For some that is almost half their monthly download allowance. The second part of their entertainment boast is that they will support 4K. 4K is a resolution for TV meaning 4000 pixels per line. In all fairness there was a mention that this is for photos and movies only, not for games, yet, the 4K trailer of Spiderman (trailer, not movie) was said to need almost 500 Gb. That much for a 3 minute trailer? Is anyone waking up considering the ridiculous limitation of a 500 Gb hard drive?

Realistically, we are not ready for 4K resolution, as this goes beyond the ability of Blu-Ray, which of course makes me wonder why the 4K mention was such an effort? 3D is more and more added to the consumer’s home, yet at this point, we see an unbalanced situation between the offered hypes and the offered hardware. Not a good thing Microsoft!

So let us take a gander in the second division of MS issues (This applies to Sony too by the way). This new-gaming wave seems to cross several borders. What is advertised as new gaming, what others call entertainment, what few see and should see as the end of privacy! Microsoft is now offering a solution that is always on, always connected and remembering and learning from you all the time. Most laws are not ready.

The one thing that we hold dear, that we protect, we seem to give away when playing a game.

The new systems are all about data collecting. They call it ‘trending’, it is in reality a ‘personalised’ form of mass-advertisement. The abundance of hype created whilst stating interaction through the cloud is in fact nothing less than a new form of data collection as Skype, TV, movies and your choice of gaming is at all times stored and saved on the cloud. A system that interacts as per now on multiple levels, unhindered by privacy laws as we surrender to that extra little ‘benefit’ where we forget that others get access too.

Their on-line system is now getting grown from the initial 15000 servers now that Xbox 360 uses, to 300,000 servers from the moment the next Xbox is launched. It is a 2,000% growth in data collection and over 200,000% storage capacity. If foundations of business are set to return-on-investment, then ask yourself why a gaming system requires that level of growth. Intellectual property that is no longer bought, but rented on a temporary basis as the cloud keeps what we buy, yet we will pay more per hour and hand over our identity in the process.

Most laws are not ready, with these new systems starting to get pushed out as per this year. Consider this; the presentation had a quote in relation to the collected information “Game developers can take advantage of our data centres“, is anyone else getting access?

As Justice continues a losing battle against cybercrime, corporate entertainment is about to hand the keys over to a group that can really use all that input. Should you consider that this would not happen, then remember how Sony lost the security of a few million accounts which included credit card information, affecting many in Australia. When this level of collection happens, when consumers connect devices, then consider the added interest cybercrime will get as many will want these amounts of data for several reasons and most laws are not ready.

In less than 6 months we will see a new age where many willingly, unaware of the consequences will give out their details, their personality and their identity to a data cloud where we can all be statistically weighted. The haves and have nots will see their private lives classified into moments of targeting, some of it likely questionable. The laws are not ready, the justice system is not ready and law enforcement is not even close to ready.

So we are faced with the cloud, space and privacy. Consider that the new console was announced to be cheaper than the 360 initially was. Consider that Microsoft is adding hundreds of thousands of servers. Then consider that thy need to make a profit. So how will this happen? More important what extra costs will you the consumer get when their marketing will start making statements like the one we heard when the 360 was about to be launched “Each console has a variety of games. Most games released on the original Xbox are backwards compatible and can be played directly on its successor, Xbox 360” This did not pan out so well. Sony was just as bad, if not worse as millions signed up for the PlayStation 3, selling (or trading in) their PlayStation 2, only to learn that this backward compatibility was not ever working correctly.

Now, as stated earlier, the new consoles will NOT be backward compatible, yet Marketing is making all kinds of statements again. The Telegraph reported in (Source: http://www.telegraph.co.uk/technology/video-games/Xbox/10075540/Xbox-One-gamer-backlash-over-fee-for-pre-owned-titles.html) that gamers will see a fee coming their way when they are playing pre-owned titles. How fun is that? I admit, I am not yet aware what Sony does, yet this could tip the scales in a major way. I all honesty Microsoft Marketing did state that there will be pre-owned possibilities, yet they have not officially stated how this EXACTLY will play out, so we await clarity by Microsoft (be really really patient)

Personally I am on the fence in this regard. I never liked pre-owned games. And as such it never really hit me. When we look at off line gaming, my thoughts are that this is none of Microsoft’s business. If I give a game I am done with to a niece, a nephew, or even the neighbours so their kids can play a game without having to pay for it, then so what? I do agree with Microsoft that the one who buys the game gets access to on-line gaming. If someone else wants to go on-line, then they should by an access pass for the on-line part. They reserved the gaming server for me the buyer, the next person will need to pay for that service. So off line gaming, patching and so on, they should stay away from charging. That is my personal view.

So here we are, Microsoft marketing spinning their party lines fast enough to get your clothes dry, it does however gives more and more pause to the quality of gaming we have to look forward to. This is how I currently see the gamers market go backwards. A business approach to a consumer world, pushing through all kinds of idea’s the youthful player never signed up for.

So Microsoft calls it an entertainment system. Entertainment? For who?

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