For those of you familiar with the Xbox 360 gaming console, you know it can be used for much more than just playing video games. Recently, Microsoft executives have stated that their "Xbox Live" subscription service should be considered a cable channel according to an artilce in the New York Times. The article then mentions how Microsoft would like to put more emphasis on T.V. and media abilities of the Xbox 360, as opposed to just video games.Apparently Microsoft has been in contact with Disney in attempt to make a possible deal with ESPN. It states:
Microsoft has held in-depth talks with the Walt Disney Company about a programming deal with ESPN, according to people close to the talks, who requested anonymity because the talks were intended to be private.
For a per-subscriber fee, ESPN could provide live streams of sporting events, similar to the ones available through ESPN 360, a service that is available from some high-speed Internet providers. Microsoft could also create some interactive games in association with ESPN, the people said.
There are around 20 million monthly members of Xbox live and all of them have the ability to access Facebook, browse movie and t.v. shows, and also view Netflix. Of course, Xbox is not the only console available to have for entertainment. Sony and Nintendo have come out with the Playstation 3 and the Wii respecitvely. According to the article, about 60% of American households now have at least one type of console. This is up from 44% three years ago. To date, Microsoft said it has sold 39 million consoles around the world. With the focus on expanding the entertainment and media aspect, Xbox can also become some prime realestate for advertisers. Obviously Xbox and other consoles have a long way to go before they are considered an equal to cable television, but they may be on their way.
The company says it regularly counts more than a million concurrent users — and topped out at 2.2 million at one point during Christmas week last month. That compares favorably to some of the top channels on cable, like TBS and the Cartoon Network, which reach about one million viewers at any given time, according to the Nielsen Company.
So is this a new market that could potentially open up new opportunites? I'm not quite sure. I am the proud owner of an Xbox 360 myself and I can honestly say that I have never used it for anything but video games. However, the numbers are on the rise, perhaps we'll be buying Xbox's instead of cable soon.
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It is amazing how technology is evolving these days. To combine a video game counsel with the ability to watch television is just remarkable. If it is cheaper to watch television by using an Xbox rather then ordering cable then I am sure many people would make the switch. Quality and HD might have something to do with a users choice as well. Cable providers already have enough competition with satellite television. If the Xbox is proven to be of better quality and cheaper in the long run, then cable could possibly be a product of the past. (A)
ReplyDeleteGoing along with our mildly sexist theme from earlier today, I think this new Xbox would really open up some new possibilities to bring in female buyers who aren't into the video game aspect. I've never been much of a gamer, but I love using my boyfriend's Xbox to watch movies or TV shows that I purchase through Amazon or iTunes and then put on a compatible external hard drive. If they played up the other media aspects of the Xbox, they could even market themselves as an eco-friendly alternative to old school movies - cutting down waste and pollution caused from the manufacturing and distribution of hard copy DVDs.
ReplyDeleteI think that it would not so much open up a new market as have the potential to consolidate old ones. I already know people who don't have DVD players because that is a simple function of their gaming consoles, so in the future perhaps people would not subscribe to cable because that is a function of their console. I think that consolidation of technology is trend that we've seen a lot in the last few years. Phones used to be for one function, to call people. Now phones can store contact information, record calling history, take photos, play videos, store music, and allow users to surf the web. It is really only a matter of time I think until all technologies are funneled in to one or two machines. The move from cable to Xbox may be one step in that direction.
ReplyDeleteI'm not sure if this will lead to people forgoing a typical cable package for the xbox offerings, but it may give rise to some interesting exclusive content. I also wonder about premium channels, in the vein of HBO and Showtime. A
ReplyDeleteFirst of all, I'll point out that there have been 39 million sold total, rather than in one month; to compare this with its rivals, the Wii has 56 million and the PS3 some 23 million.
ReplyDeleteThe rise of consoles raises several interesting points of discussion, particularly the one alluded to in the article: that of the merging of different technologies into a single, unified platform. There is clearly much money to be made in this, as long as it is in a sleek, intuitive form, which is increasingly possible given modern technology. The next generation of consoles will surely go far beyond playing games as they look to substitute individual technologies.
A second interesting thing about the current generation of consoles is the costs. Sony has taken to selling their platform at a considerable loss, banking on the acceptance of Bluray and the sale of their games. Nintendo, on the other hand, has managed to sell their less powerful console for a profit off of each individual unit, and roped in new markets. Who will be successful in the long run is still unclear.
I think Microsoft has done a great job with the Xbox 360, because they have created incentives for people not only to buy it to play video games, but also to save some money as well. Being able to connect to the internet and also watch you favorite TV stations creates an incentive for the buyer, because in doing this, you are saving money. Instead of having to pay a monthly cable bill, you can just buy the Xbox 360 with internet hook up, and be able to watch your favorite shows. Also, if Microsoft expands the internet access beyond social networking sites and netflix, you might not need to buy a computer either. This would save consumers a good deal of money. Consumers who are not even interested in video games might even consider the Xbox 360 if you are able to access any website you want, as it is much cheaper than any computer, and they also wouldn't have to deal with a cable bill anymore. With this said, the Xbox 360 has a bright future as long as they allow the buyers to access everything the internet has to offer. Microsoft looks to be heading in the right direction. Finally. (A)
ReplyDeleteI think this is a great idea. Technology sure has come a long way from the old NES system, and because of this, more people will (hopefully) give into the Xbox fad. You have to spend a little to gain a little (or a lot) I always say.
ReplyDeleteIt seems like they come out with something new and improved every month to ensure that they gain and keep customers. Having the ability to watch television on your gaming console seems very unnecessary to me. An Xbox should have the sole intent of being used for gaming purposes. Internet capabilities are one thing, but having he ability to use it as you would for cable is ridiculous. Microsoft should use their time to create a good gaming experience not help us watch tv.
ReplyDeleteGoing off of Bridget's comment...the cable thing might swing a couple prospect buyers over the fence, but it wouldn't open it up to "a whole new female audience". Actually, 2 out of every 5 gamers are female. But if you're not "into the video game aspect", I highly doubt you're going to purchase an Xbox 360. E, A
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