Category Archives: xbox

Microsoft quarterly results: server and tools shine, overall decline

Microsoft has reported its results for the quarter ending 30th Sept 2009. I’ve got into the habit of making a small table to help make sense of the figures:

Quarter ending Sept 30th 2009 vs quarter ending Sept 30th 2008, $millions

Segment Revenue % change Profit % change
Client (Windows) 2620 -38.8 1463 -52.17
Server and Tools 3434 0.50 1283 22.89
Online 490 5.80 -480 -49.53
Business (Office) 4404 -11.1 2863 -11.37
Entertainment and devices 1891 -0.11 312 96.22

A quick glance tells you that Windows suffered a sharp decline, though Microsoft says this is because it has deferred $1.47 billion of Windows 7 upgrade revenue, and that adding this back would reduce the decline to 4% year on year.

Note that even with the deferral, Windows is highly profitable.

The star here is server and tools, growing in the downturn and delivering strongly increased profits. I doubt tools counts for much of this; I’m guessing it reflects the positive reception for Server 2008.

Online is as dismal as ever. Clearly the Live properties are still not performing. Presuming Azure is in this category, it’s possible that this will start to turn this round; that is more likely I guess than an improvement in the fortunes of existing products such as Bing.

Office strikes me as pretty good bearing in mind the weak economy and that Microsoft is now talking about Office 2010. Entertainment and devices ticking along but nothing special.

I’m guessing Windows 7 will deliver Microsoft a great next quarter no matter what; but when if ever will it be profitable online?

Disclaimer: I am not a financial analyst, and hold no shares in companies about which I write. Please do not misconstrue this as investment advice; I know nothing about the subject.

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Sony’s Flash advantage for PlayStation 3 vs Xbox 360

Sony’s PlayStation 3 includes a web browser and for some time it has been possible to view BBC iPlayer content there. The iPlayer is based on Adobe Flash. The attraction of this approach is that the console is already plugged into the home TV, so it is a relatively seamless shift from conventional broadcasting, provided you can figure out how to operate it using a game controller.

According to the BBC’s Anthony Rose, people are figuring this out big time, now that Sony has both enhanced Flash with h.264 support and full-screen hardware acceleration, and added an iPlayer icon to the PS3 menu (I should think the latter counted for more than the former). He’s revealed on the BBC Internet blog that:

… iPlayer on PS3 now accounts for a massive ~10% of all iPlayer viewing, overtaking Mac (8.5%) to be our 2nd most popular platform for IP-delivered content.

I find that impressive given that the PS3 is still marketed primarily as a games console.

The obvious question: what about Xbox 360, which is inherently more than capable of the same feat? The problem is that Flash is not supported on the 360, nor does it have a web browser. You can watch TV via a 360, by using it as a Media Center Extender, but that means getting quite a few other pieces in place in your digital home, including a Media Center PC with a TV aerial plugged into it – and even then, you are not getting iPlayer, just digital TV.

There are a couple of solutions that come to mind. One is that Microsoft could get together with Adobe and support Flash on the 360. The other is that Microsoft could get a move on with its Silverlight support on 360 and persuade the BBC to serve up iPlayer content for Silverlight as well as Flash. Both are technically feasible; the first would be easier for the BBC but embarrassing for Microsoft, which is promoting its own video streaming technology, while the second would be expensive for the BBC.

Another party which is likely to be watching with interest is ITV, which has its own catch-up service. This used to be based on Silverlight but now seems to be pretty much all Flash, perhaps because of quality problems or simply to take advantage of the wider deployment of the Flash runtime. Even though it does not have its own icon on a PS3, you could watch ITV Player via the browser.

Catch-up viewing is popular, and this sensible Flash-based development alongside existing Blu-ray support gives Sony’s machine a substantial advantage over the 360 when considered as a home entertainment device, rather than merely a games console. I’d expect this to be a significant factor as buyers make their choices in the coming Christmas season.

Finally, I wonder what other interesting potential there is for runtimes like Flash or Silverlight on a game console that is wired directly into the family home? Could there be a PS3 app store in the console’s future?

Update: A couple of informative comments below observe that there is a way to get iPlayer on the 360 via WMV download and Media Center; and that Sky Player is Silverlight-based and coming to Xbox. So it is not game over yet.

Microsoft fixes Xbox 360 license transfer

Microsoft has finally fixed a long-standing irritation with the Xbox 360: the inability to transfer licenses for purchased games from one console to another. The new license transfer tool lets you consolidate all your download purchases to a specific Xbox 360, even if some were downloaded onto a console that no longer works or was sold on.

I’m personally grateful as I ran into exactly this problem and had an argument with support about it.

There’s a wider point here. If I buy virtual property, like software, music or an ebook, it makes sense to record that ownership in the cloud so that there is no need to keep backups and it cannot really be stolen (other than by hacking the online account, I guess).

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UK Rock Band prices strike an ugly chord

I was surprised to see that the highly-regarded Rock Band game has been rated only a two-star game by customer reviewers at Amazon.co.uk.

The reason: not the game, but the price. The Band in a Box package, which costs up to £129.00, neglects to include the game itself: buy it separately for up to £49.99.

Amazon’s prices are a little less; but in the USA Amazon.com offers the whole lot for $149.99 (list price $169.99). I’m using the Xbox 360 versions for this example.

The problem for Electronic Arts is that buyers are only a click away from checking out the prices in other countries. “The price is a joke. No purchase,” says one UK customer review.

Will it seriously affect sales? Only if people really do refuse to buy; then of course we’ll see the price lowered. However, it is currently occupying positions two and three in Amazon’s all-format bestseller chart, so maybe not.

Aside: why does Amazon say this has a PEGI rating of 16 for the instruments, but only 12 for the game? If the problem is risqué lyrics, you would have thought it would be the other way round.

XBox 360: nearly great

Unhappily, I have joined the ranks of those who have suffered more than once from the XBox 360 red lights of death. It’s a known design fault, so hardly surprising, but annoying none the less. Mine was a launch console, and lasted over a year before succumbing. Ten months later, and it’s failed again. I don’t blame the repairer; it’s even a different error code (0103 vs 0020).

The 360 story resembles that of a Greek hero: great, but tragically flawed. I love the console and would hate to be without it. Pre-launch, there was much debate about whether a narrow disadvantage to the PlayStation 3 in graphic power would damage it; Microsoft said that the quality of the software was more important, and has proved its point. Few complain about the 360’s graphics. There are plenty of high-quality games; XBox Live is a strong service; the downloadable arcade games are compelling and good value; it does a decent job as a media center; it has the best wireless controller; and now you can even purchase movies through XBox Live.

But the flaws. Most notably, the fact that you know the thing will fail prematurely. Well, the current crop is said to be better, but how much better? It is unknown, though I guess I’ll find out because I’ve just gone out and bought an Elite at the new reduced price, tempted by HDMI, a larger hard drive, and the hope of longer intervals between red illuminations. Good money after bad? Not really, because the console has delivered value. It is just flawed, that’s all.

There’s also the noise of the fans and DVD drive, and I must mention a third problem, which has caused me some aggravation. This concerns the DRM. If you purchase a game from Live Arcade, it is fully unlocked for all the profiles on that console. However, if the console breaks and is replaced, and you re-download the game, it is only unlocked for the profile which made the purchase. Sounds a small point; but if you replace your console and have a family member who enjoyed playing a particular game under their own profile, it is annoying to find that it is now only a trial.

I thought I should check my facts, so I called Microsoft’s customer service and asked if I could transfer the licenses from my doorstop (formerly a 360 Premium) to the new Elite. No, I was told, the games were tied to the doorstop. Rubbing salt into the wound, the service representative said she would have helped, but I had violated my terms of use by tampering with the machine. In other words, it was my fault.

My crime, it turns out, was in sending my 360 (which failed before Microsoft extended its warranty to three years) to a third-party for repair. Not only did this void the (then-expired) warranty; it also meant that Microsoft would not help me recover the full rights to my purchased games.

I am sceptical about how much difference this actually made, since my understanding is that Microsoft never transfers licenses to those upgrading to an Elite.

Fortunately there is a workaround, discovered not from customer service but from my own research. If you have several controllers, it is possible for each controller to be signed in under a different account. Just press the XBox button on the controller and select a profile. Provided that one controller is signed in as the profile which made the purchase, other profiles can play the unlocked arcade game. Not ideal, but better than nothing.

It is interesting to speculate just how much the 360’s quality problems have cost Microsoft. There is the cost of constantly and repeatedly fixing consoles; even more serious are the sales lost to those reluctant to purchase a machine likely to break prematurely. I would likely be one of them, except there is a row of 360 games on the shelf. It’s called lock-in.

We like the Elite. The graphics seem a little better; it is quieter and even feels slightly more responsive than the old box. A great console. But flawed.

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