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Xbox on the Mind Microsoft Is Scoring Mind Share, but It Must Make One More Deal to Have a Shot at Winning the Console War

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Xbox on the Mind Microsoft Is Scoring Mind Share, but It Must Make One More Deal to Have a Shot at Winning the Console War 001-12_GIN _04.te.qxd 2/18/04 11:39 AM Page 1 VOLUME 1, ISSUE 4; FEBRUARY 20, 2004 Xbox on the Mind Microsoft is scoring mind share, but it must make one more deal to have a shot at winning the console war “People are acting like our desire to make to conferences, hand out fliers, talk to important it is for Microsoft to play well a profit on a product we sell is some sort influencers. There’s absolutely nothing with others in the console space than those of unforgivable sin.” organic about this.” in the PC space. Microsoft has bet heavily on online gaming as a strong selling point That’s a Microsoft executive whom But such PR campaigns are successful of the Xbox, and the company is making we’ve known since before Bill Gates made only if there’s an audience ready to accept steady progress in attracting subscribers, his first billion. He’s worked on all sorts of them. “People are throwing all sorts of but Xbox Live will not be sustainable until projects for Redmond since the 1980s, and money at our culture,” says Kevin Liles, Microsoft makes a deal to include the enor- he’s furious about the response to early who stepped down as president of hip-hop mously popular Electronic Arts games on news about Xbox Next. “People don’t even stalwart Def Jam earlier this month as part the system. Online isn’t the only key, know what it’s going to be, and already of the Lyor Cohen/L.A. Reid shakeup. though. As any console player will tell you, we’re getting all this talk about how one “And sometimes that money is attached to exclusive content and low retail prices will potential feature or another is a betrayal. something we do like.” still make quarterly numbers go down Grow up. If the second Xbox has the same more easily. business model as the first, there’s never Adds an executive at Island Def Jam going to be a third. Believe me. Is that Music Group, “The cars in our culture are “Microsoft saw with Halo and Half-Life what the hardcores want?” big. The clothes in our culture are big. Our how wonderful things can happen when game machine is going to be big, too.” you meet gamers’ needs,” says an executive Why is the reaction to rumored features who worked with Redmond on one of so vivid and intense? Because the Xbox has THE VIDEOGAME ESCALADE those games. “Especially with the sports captured the imagination of the gaming Indeed. In keeping with the Escalade analo- games, it’s inevitable that gamers are going public and is generating the sort of pop- gy, the physical size of the Xbox makes it to demand quality games with online play. culture references that the PS2 once attractive by making it look more substan- EA knows that and Microsoft knows that. enjoyed. You hear more and more sports tial. And since the Xbox’s controller is larg- Microsoft is in this arena to win. It’ll make stars and pop stars citing it, and every er than those for competing consoles, it fits whatever deal it needs to to win.” So being urban downtown area seems full of green big American hands better. Some observers cool and being the box with mind share X stickers. (Green is the favored hip-hop cited Xbox’s American origins—it’s the add up to a good start, but it only lasts so color nowadays, as both halves of OutKast only one of the Big Three consoles designed long if you don’t deliver what your audi- showed on Grammy night.) It’s even cool Stateside—as a reason for the Xbox’s ence wants. to modify the Xbox with an alternate oper- increasing “coolness.” Says one developer ating system or increased processor speed— who has worked on games for all major AND WHAT WAS THE it’s like customizing a favored vehicle. One platforms, “Say what you like about GOOD NEWS? colleague likens the ascension of the Xbox Microsoft, but even its first-generation to that of the Cadillac Escalade: “It’s Xbox has the best graphics on the market. “Twenty-three development studios another big, overweight, ugly box that hap- And since the big differentiator these days shut their doors in Europe in 2003, pens to be extremely capable.” seems to be having the most sophisticated graphics, Xbox looks more attractive. Just up from 14 in 2002 and a mere eight This hasn’t happened by itself, of course. compare Grand Theft Auto III on PS2 and in 2001. Although several new stu- Microsoft regularly brings “influentials” to Xbox. It’s no contest.” dios have sprung up from the ashes its Redmond campus, among them groups of DJs and performers. The company has We also heard from developers that the of those companies, the stark reality seeded these influentials with Xboxes. Xbox is particularly attractive to PC devel- in those facts is clear: This is a sec- Public relations veteran Richard Laermer, opers because it runs on a customized ver- tor in crisis, and no amount of sugar- author of Trendspotting, acknowledges, sion of Windows. The relatively easy tran- “There’s a huge PR machine behind the sition from PC game development to Xbox coating the figures can change that Xbox. When you have a machine like that, game development—and the opportunity fact.” you can feed the marketplace. You can go that offers—underlines how much more —Financial Times 001-12_GIN _04.te.qxd 2/18/04 11:39 AM Page 2 EDITOR-IN-CHIEF Crime Pays, Jimmy Guterman Persia Doesn’t [email protected] ZIFF DAVIS MEDIA Except for Electronic Arts, which occupies “Activision was so smart. True Crime is a 500 UNICORN PARK DRIVE its own rarefied space, the two game compa- good game, maybe not as good as Prince of WOBURN, MA 01801 nies entering the holiday season with the Persia or Beyond Good & Evil, but the big highest hopes were Activision and Ubisoft. difference was that Activision understood 781-938-2639 “Both were extremely well positioned with a the market. They held off on games that collection of really good games,” notes the didn’t follow trends and worked hard to CEO of a competing publisher. “There was make sure the Grand Theft Auto fans ART DIRECTOR: Jason Babler only one difference: Activision had really knew that True Crime was right up their good games that people wanted to buy.” alley. They picked the right title at the right time, and they executed. I’m glad there COPY DESK: Tom Edwards, Greg Ford, “Both companies emphasized quality aren’t more companies like that!” Susie Ochs, Maritza Refuerzo over quantity, which is a very good thing,” says Simon Price, an industry consultant in An editor at a (non-Ziff Davis) consumer England. “Activision, in particular, cranked game magazine says he’s disappointed: quality to 11.” He contends that despite “I’m glad Activision broke through with PRODUCTION: Carlos Lugo, Michele the critical raves awarded to Beyond Good True Crime, but we absolutely loved those Manousos, Anne Marie Miguel & Evil and especially Prince of Persia, two Ubisoft games. I guess these days hav- “Those games are not where the gamer is ing a great game isn’t enough. You have to anymore. They had beautiful design but have the right game at the right time. And CIRCULATION DIRECTOR: Chris Wilkes not what gamers were looking for.” more people want to go to L.A. [the loca- tion of True Crime] right now than ancient [email protected] An executive at Electronic Arts says: Persia.” ZIFF DAVIS GAME GROUP WHAT CONSOLE TABLE OF CONTENTS GAMERS ARE PLAYING, SENIOR VICE PRESIDENT: Dale Strang ACCORDING TO A PUBLISHER: Lee Uniacke TRADE GROUP EXIT INTERVIEW EDITORIAL DIRECTOR: John Davison We’re not so sure these are useful differ- Ed Fries opens up to John Davison about his entiations. Grand Theft Auto could fit into 18 years at Microsoft BUSINESS DIRECTOR: Cathy Bendoff every category here except sports. Maybe PAGE 6 it’s an attempt by an industry organiza- tion to minimize the popularity of one Copyright © 2004, Ziff Davis Media Inc. kind of genre: shooter. FEWER SMACKDOWNS, MORE CUDDLING All rights reserved. No material in this Romance comes to videogames publication may be reproduced without PAGE 8 Shooter 4.6% Action written permission. Bulk orders, reprints, 27.1% and site licenses are available. Role-playing 8.7% MOBILE MATTERS Sports Nokia’s N-Gage prepares for round two Subscriptions cost $995 per year. Visit 17.6% PAGE 10 http://www.gamingindustrynews.com for Racing 15.7% our best subscription offer. Gaming TOO SOON TO VERIFY Source: Entertainment Software Association Industry News is a trademark of Ziff The latest industry tips, unfiltered PAGE 11 Davis Publishing Holdings Inc. 2 gaming industry news February 20, 2004 001-12_GIN _04.te.qxd 2/18/04 11:39 AM Page 3 Seeing the Phantom Now people will stop wondering if Infinium’s much-rumored PC console is real. But is there a market for it? By Dean Takahashi When Xbox cocreator Kevin Bachus market.” networking services company that went pub- became president and chief operating offi- lic in 2000 and has a market capitalization of cer of Infinium Labs, he knew he would Bachus says that Infinium Labs is misun- $325 million. The potential Infinium face skepticism. Infinium seemed like a no- derstood as being a hardware company investors, who are awaiting SEC approval, name start-up heading on a suicide mission when it really should be viewed as a service say that they’re aware of Roberts’ back- by launching a videogame console for PC company.
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