Info from a report by DFC Intelligence analyzing the New Xbox Experience.
Another look at how Microsoft are attempting to widen their user base with the addition of more social network friendly features and driving the Live experience from a gamer centric one to an entertainment one. The addition of NetFlix is a huge win with the ability of being able to stream HD quality movies for a subscription fee. Inclusion of Avatars adds to the personlization of online identity, deeper engagement as well as allowing for another revenue stream.
- The New Xbox Experience is about enhancing the interface and community-building features of Xbox Live. This is part of Microsoft’s long struggle to expand the appeal of the Xbox 360 beyond the core action game fan.
- There are two major appeals of online games for the developer
- The ability of online games to directly generate significant revenue
- Online features as the indirect driver of business through building a community, extending product lifecycle and enhancing consumer loyalty.
- Microsoft has clearly been focused on making the service a direct revenue generator. In addition to the annual subscription required to play games, Xbox Live’s big focus has been on getting people to spend money in Xbox Live Marketplace.
- In contrast, Sony (and Nintendo) have focused on making online connectivity a free value add.
- It is clear that the New Xbox Experience is focused on extending the community by enhancing the user interface, the goal is to broaden the user base.
- There are some indications that the Xbox 360 may slowly be expanding its demographic appeal, at least in the U.S.
- With a recent price drop and a new interface, the Xbox 360 has surprisingly become the system with the freshest value proposition for holiday 2008.
- Most importantly, the Xbox 360 now has a great deal of content to appeal to consumers that DON’T play violent shooting games.
- Casual games and social games are quietly becoming a big part of the Xbox 360 experience.
- The Netflix partnership could prove to be particularly lucrative as it allows users to get living room access to stream an unlimited number of movies for a set monthly fee
- Today the majority of revenue comes from subscriptions (most notably the $50 a year for Xbox Live), by 2013 about 55 percent of revenue is expected to come from digital distribution.
Original Article -http://www.dfcint.com/index.php
