How Microsoft handled heavy backlash over XBox One announcement
When Microsoft announced that its upcoming Xbox One game console would require a once-daily “check-in” online, as well as severely restrict the ability to play, trade and sell used games, it set off an explosion of outrage among the gaming community, a community which consists of some of the most heavy-spending, brand-loyal and vocal consumers out there.
Immediately, lists like this one, found in Reddit’s popular /r/gaming forum, began to propagate, along with other, far more vicious material and countless memes slamming Microsoft. Microsoft’s main competitor in the gaming market, Sony, even got in on the act, publishing a video that mockingly shows how to share games on its just-announced Playstation 4:
Well, Microsoft hasn’t become the leviathan it is today by making stupid decisions, and after taking a week to sift through the conversations online, as well as conduct what we’re sure were some rather frantic XBox dev team meetings, the company announced that it was reversing its policies on sharing and required connectivity. Here’s a quote, from the official statement:
Since unveiling our plans for Xbox One, my team and I have heard directly from many of you, read your comments and listened to your feedback. I would like to take the opportunity today to thank you for your assistance in helping us to reshape the future of Xbox One.
You told us how much you loved the flexibility you have today with games delivered on disc. The ability to lend, share, and resell these games at your discretion is of incredible importance to you. Also important to you is the freedom to play offline, for any length of time, anywhere in the world.
Microsoft went back to the most basic of Crisis Management 101 tenets with this one; if your stakeholders are ticked about something, and you’re able to change it, do so! Sure, the always-fickle internet gaming community is going to rumble, grumble, and trash talk Microsoft a bit more, but the reality is that the reason many said they would refuse to buy the XBox one has been nullified, putting Microsoft firmly back in the competition for top next-gen console.
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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]
The issue with the fan base does take primary importance, but I’m not so sure Microsoft didn’t have a better story to tell.
My understanding was the new setup would have greatly reduced the price for premium games, down to the $30 level instead of $55-60. The second-hand sales market (GameStop, eBay, et al.) represented money that never got to the developers — ergo games get priced at a level commensurate with the true audience size.
Customers buying the new Xbox games would have had up to 10 players authorized per license, and could okay at a friend’s house with no need to bring physical media. For half what they paid for new games (or slightly less than a first-gen used game.)
Status Quo wins, and I wonder how much GameStop lobbied underground to foment the backlash.
I also wonder what repercussion this has for Microsoft, who had hoped this streamlined licensing model would be friendlier for developers and ensure they got properly compensated instead of being carrion-picked in the used game market. Will the popular backtrack to appease the players have an unintended consequence in fewer games, because of burned relationships with the smaller game studios?
Sometimes the crowd isn’t as smart as they think they are.
Your points are extremely valid Ike, and I think where Microsoft originally went wrong was in failing to tell that story, or failing to tell it in a way that media could easily digest and repeat to the public. I’m not sure whether they shared the details you have at E3 and media events after, but if they did it went almost entirely unreported, at least on mainstream news sites. Had Microsoft been able to package the good info and deliver it along with the details that upset many, the changes to DRM may not have ever gotten the near-universal level of support that it did.