Xbox One Eighty - Microsoft u-turn on online/pre-owned policies

Company listens to consumer anger, changes direction as a result.

Xbox One Eighty Microsoft u-turn on onlinepre-owned policies
20th June, 2013 By Ian Morris

Ever since Microsoft announced their new console, the Xbox One, their policies regarding used games, mandatory online connections, and game sharing have been somewhat unclear. It didn't help that Microsoft themselves didn't really seem to know what was going on, flip-flopping from policy to policy with every interview they gave, without ever giving a clear answer about what they were trying to do. Eventually, though, things seemed to settle down, as the company put up a list of policies and rules - essentially their ten commandments of gaming - on their website, to explain how the new console would work. We explained the rules then, and what they meant for your average consumer, but in a nutshell, things were roughly as follows:

  • You'd need to connect to the internet once every 24 hours in order to play your games on the Xbox One, even if they were single player only.
  • Games would be locked to your account, meaning you couldn't lend them to a friend.
  • Trade-ins would be possible, but only at a publisher's discretion, and only at "participating retailers".
  • On the plus side, you'd be able to digitally share your library of games with up to ten "family members", letting them access your games from any Xbox One console - although it was never made clear how many people would have access to your library at once, or exactly how this would work.

As you'd probably expect, this didn't go down phenomenally well with fans online, who'd grown accustomed to owning the games they purchase, and then being able to do with them whatever they liked - whether they lent them to a friend, traded them in at a store, held on to them, or even - gasp! - wanted to play their games somewhere that didn't have an internet connection. And people were very vocal about their annoyance at the new policy, taking to Twitter, Facebook, YouTube, and countless forums to vent their frustration. But even in the face of a consumer meltdown, Microsoft stayed focused on their "vision for the future", one that seemed to have unclear, if any, benefits for consumers, but several for publishers, who were set to get a cut of the revenue from used game sales. 

But then giant gaming convention E3 rolled around, and Sony announced their own pre-owned policies for their new console, the Playstation 4. In essence, there were none. You could do whatever you wanted with a disc once you'd bought it, as it was your game. There was no need to check in online, and no need to only trade games in at participating retailers, making Sony seem like veritable saints in the games industry by comparison. Pre-orders for the PS4 practically sky-rocketed as a result, while the Xbox One lagged behind in a very distant second place. But even then, Microsoft did their best to stay their course, stating in interviews that their policies were fixed, set in stone, and would not be changed. And then the unthinkable happened.

With their back against the wall, and consumer confidence at an all time low, Microsoft felt pressured to make a move - which is why they today announced that they'll be removing most of the digital rights management features on the Xbox One through a day one patch. In essence, what this means is you won't have to connect to the internet every 24 hours in order to keep playing your games, games won't be locked to your account, and you'll be free to do whatever you want with a disc once you've purchased it - you can trade it in, lend it to a friend, or hold on to it forever, just like you've been able to do on every other console. As Microsoft put it themselves on their website:

An internet connection will not be required to play offline Xbox One games - After a one-time system set-up with a new Xbox One, you can play any disc based game without ever connecting online again. There is no 24 hour connection requirement and you can take your Xbox One anywhere you want and play your games, just like on Xbox 360.
Trade-in, lend, resell, gift, and rent disc based games just like you do today - There will be no limitations to using and sharing games, it will work just as it does today on Xbox 360.

In addition, a few extra features were announced as a sign of goodwill, including the news that Xbox One games will not be region locked - so if an obscure game comes out in Japan and never reaches these shores, you'll be free to import it safe in the knowledge that it'll work fine. While we've lost the ability to have up to ten family and friends access a single shared library of games, Microsoft never clearly explained how that policy would work anyway - so it's probably safe to say our gains more than make up for our losses. And it's an incredible victory for the consumers.

It's important not to play down the significance of what's just happened. In all our years covering the games industry, we can't remember any u-turn quite as drastic as this. Microsoft were dead set on releasing a console that would restrict what you did with your games, in exchange for a poorly explained "shared games" library - but eventually, consumer pressure made them cave in. They listened. For a company like Microsoft, this can't have been easy. Admitting you've made a mistake is never the easiest of things to do - especially when you've been telling everyone that what you're trying to do will actually work in their advantage, without ever really explaining how. Although Microsoft's carefully worded reply suggests they still think strict digital rights management is the way to go for the future, the fact they've caved in is unprecedented, and will go some way to restoring consumer confidence in their new system. Now, the choice of console is no longer down to a restrictive console vs. a console that lets you do anything, but a simple question of which has the more appealing games, and the more appealing price.

But while there's plenty to be cheerful about here, there are still reasons to be a tad concerned, too. Perhaps the most significant problem is that, somehow, Microsoft didn't see this reaction coming. Someone, somewhere obviously decided that a console that comes with a mandatory 24 hour check in and restricts used games was a great idea, and nowhere in the command chain did someone manage to point out - or perhaps make those at the top realise - that people wouldn't be happy with having their rights taken away, especially when presented with a cheaper, friendlier alternative. It didn't take a genius to see how hugely unpopular these measures would be - after all, as soon as rumours broke that Microsoft was even considering restricting used games, the internet exploded into a fit of rage and worry, as they pondered what the future of consoles held. That a company could be so hugely out of touch with not only its core audience, but consumers as a whole - much like the decision to remove the Windows 8 start menu - may raise question marks over the rest of the console's future. If they got this so spectacularly wrong, will there be anything else to follow?

Either way, for the first time in several weeks, Microsoft have managed to get their console some good publicity. Safe in the knowledge that the draconian rules are being removed, consumers now get to weigh up all three of the new consoles - the PS4, Xbox One, and Wii U against each other as equals as they make their decision. While Microsoft haven't guaranteed that they won't one day decide to flip the switch back on, and restrict used games once more, it's hard to imagine that they would - if the PR storm they got this time round was bad enough, you can only imagine how nasty things would get then.

Just when some were starting to write the system off before it had even launched, the Xbox One is back in the game. Now, let's see if it can keep its new-found momentum up, as we head towards its November launch.

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