Blog – Microsoft Backtracks: Is their updated “always online” and used game policy for Xbox One good or bad for consumers?

Written by Jon Wright

When Microsoft first announced their new console, the Xbox One, they introduced some fairly confusing and controversial policies toward gaming. First, the Xbox One’s need to be “always online”. Second, the console’s policy toward used games and licenses. Gamers were understandably confused and frustrated because no one at Microsoft was able to clearly answer their questions about licensing. And it seemed that Microsoft couldn’t care less.

Then the week prior to E3 Microsoft posted a series of press releases with more details on how this would work. The Xbox One would need to connect to the internet at least once every 24 hours. They also clarified the console’s policy toward used games and licenses, specifically for families, selling used games, and transferring ownership of games. This clarification was based on people’s negative initial reactions and introduced consumers to things like family game sharing and a couple other features that sounded really innovative and great for gamers.

Then at E3, recognizing the less than enthusiastic response to the Xbox One’s policies, Sony’s presentation was essentially a giant shot across Microsoft’s bow. We discussed this in our post-E3 podcast. They announced that for for the Playstation 4, in addition to a lower price tag than the Xbox One, their policies on requiring an internet connection as well as on used games would be exactly the same as it was for the Playstation 3. This had many gamers who love their Xbox 360s considering a switch, myself included. We wanted to “own” our games, not “license” them from the publishers. We wanted to be free to do what we want with our games. But to be honest, I was still excited to see how the more innovative policies from Microsoft would work.

However, today Microsoft has completely changed their stance. They are now saying that your console will not have to be “always online”, but that it will only require an internet connection upon setup. They are also changing their stance on game licenses. Your Xbox One games will handle just like Xbox 360 games. You can trade them, sell them, put them through your blender, etc and not be charged a dime.

Until now, Sony and Microsoft have had completely different agendas. Sony has been marketing the PS4 as the box built with gamers specifically in mind. A console without the restrictions that the Xbox One would require and enforce. For gamers who use their consoles primarily for gaming, this stance was incredibly appealing no matter which console they currently own. Microsoft, on the other hand, had been taking a different approach than Sony. Microsoft wants to own your living room with their, “all in one” Xbox One. They seemed to be marketing to a broader audience than just gamers, even including a cable hookup. They didn’t seem to be focused on being the one console for hardcore gamers, but the console for everyone.

But Microsoft has changed all that.

Was this a reaction to gamers threatening to leave Microsoft behind en mass for Sony? Definitely. In the press release today Microsoft said, “Your Feedback Matters…” So the feedback that Microsoft got from gamers prompted the policy change. With the elimination of the used game and “always online” restrictions of the Xbox One it Microsoft is “competing” with Sony to hold on to the gamers.

While this policy change will remove some of the initial reservations gamers had about the Xbox One (aside from it’s higher price tag) I’m not so sure it’s a good thing.

The game licensing model that Microsoft proposed included a “Family Share Plan” that let you share your entire game catalog with 10 people. This is GREAT for gamers. This would allow you to increase your game catalog with friends and family. This was all tied to your gamer account, so you could access all your games from any Xbox One without the disk. This plan would also have included all of your online game purchases. So you could share and even sell your downloaded arcade titles, something that we can’t do now.

These are great features I was personally looking forward to in the Xbox One. These features pushed the industry forward. They established a new standard in console gaming. Microsoft was modeling their marketplace to be more like Steam, which was really cool. Now, thanks to no one but ourselves these great features are shelved. The outcry of gamers about “licensing” rather than “owning” was valid based on how “licensing” has worked in the past. But honestly Microsoft’s plan was different. It had carefully considered these things. It wasn’t as restrictive as it was perceived. You would still “own” your games, and even be able to share them more easily. It was a plan was meant to revolutionize the marketplace making your games more accessible not less. It was truly “next-gen”. But we can say goodbye to all that now.

Because of the negative reception of these policies, the Xbox One games marketplace, online as well as in store, will work exactly how it does now. No shared games catalog. No selling or transferring online purchases. No revolutionized marketplace. The next generation’s marketplace will be exactly the same as the last.

So was there anything Microsoft could have done to get gamers on board with their policies? Maybe. They could have taken the time in the Xbox One reveal to cover the new licensing policies. They could have explained their revolutionary new policies to users. Instead it seemed that no one had a clear answer to legitimate questions that gamers had about the policies. And honestly these concerns went back further than the reveal announcement. There were many rumors about new DRM policies prior to the reveal and people were obviously concerned. If Microsoft had addressed the concerns in a satisfying way in the reveal, it might not have been perceived as a restriction, but as a industry changer.

Instead, gamers rallied behind Sony in maintaining the status quo, and Microsoft is scrambling to get them back. Now Microsoft has listened to everyone’s outcries (even the misinformed ones) and changed their tune.  Backtracked on their revolutionary policies. While it’s possible Microsoft could have avoided this situation, the blame also rests on gamers. Now, we will never know what we are missing.