"The Xbox Failure" editorial at Icrontic.

**Jarvis** · 10-21-2002

The Xbox Failure

Microsoft's Xbox was one of the most anticipated gaming consoles in history. It received enormous press throughout it's development and launch. Microsoft spent billions designing and promoting it, and they lose money on every unit sold. This was all part of Microsoft's gamble. They anticipated huge Xbox and Xbox component sales. They also got the chance to get into the living rooms of people who otherwise wouldn't have any part of Microsoft. Microsoft's gamble failed, and the Microsoft's reputation has been tainted as a result.

Microsoft's first major mistake was to tout the Xbox as strictly a gaming console rather than a computer. We all know that the Xbox is made from computer components and could have easily been converted into a hybrid computer/gaming machine. Microsoft didn't want to do this because they were afraid people wouldn't purchase the unit for playing games if it was a computer as well. They had previous attempts at such a gaming/computer hybrid system to draw from as well, such as the Phillips CDi, which failed miserably. It was this decision, however, that doomed the Xbox to failure.

The decision to make the Xbox a strict gaming system put it into a different league. Gone are the buyers who would have bought the unit for a computer. These are the people who know Microsoft and their reputation, and are interested in performance of the unit. Instead, the demographic Microsoft got were gamers. They didn't care that the Xbox was faster than the Playstation 2. Playstation 2 has more games, and more importantly more good games. Microsoft made a nobel attempt at producing top-quality games to compete with Sony and Nintendo, but the "big two" had years of experience and relationships in the console business, something which Microsoft did not have the luxury of. The result is that the Playstation and GameCube had the games, and the Xbox did not. I like to compare this situation to that of Apple. Microsoft would be more successful if it simply had the software that everyone wanted, just like Apple. The folks at Microsoft aren't stupid, and the recent acquisitons of companies such as Rare show that they are trying to get the games the fans want.

We can see the effect of this with the Xbox sales numbers. The Xbox has consistently sold far less units than both the Playstation and the GameCube in all parts of the world. The Adrenaline Vault reports:

Sony's PS2 console is expected to account for 63 percent of sales, followed by Nintendo's GameCube with 21 percent and Microsoft's XBox with 16 percent. The research highlights the domination of the Sony system. By the end of this year, 72 percent of global cumulative shipments will be PS2 systems, compared to 16 percent GameCube and 12 percent Xbox.

These numbers fall far short of Microsoft's estimates for the console. Pity, it had so much potential.

Another facet of the Xbox that failed is its security. The Xbox was designed to be secure. However, that security was compromised, and the Xbox now has "mod chips" available for it to allow pirates to play pirated games. Considering this is Microsoft's first attempt at a console, they wanted to make it secure. You don't earn a very good reputation when your uncrackable console is cracked. Microsoft knows this, and they told nVidia to update the chip in the Xbox to foil hackers. This forced nVidia to throw out millions of dollars worth of chips to change the design, resulting in a quarter loss. Now, the Xbox "v1.1" is out with the new hardware, and it has again been compromised by hackers. This is a slap in the face for not only Microsoft, but nVidia, who bore the burden of switching hardware designs.

The ultimate goal for the Xbox may not be lost, however. Microsoft's long-term goal is to get their computer attached to every living room television in the world. They decided to start with the Xbox. Soon enough they will be releasing a new version of the Xbox that has TiVo like functions. Again, I reiterate the fact that Microsoft should have equipped the initial Xbox units with this functionality. If the next generation of Xbox PC/console hybrid machines do in fact sell, it will make no difference for the fate of the current Xbox, as it's still a failure. The new computer-like features of the next generation of Xbox's will appeal to many more consumers than a pure gaming machine. Believe it or not, you can have the best of both worlds.

Another problem in the Xbox is the design. Microsoft chose to put a 10GB hard drive in every Xbox unit. This is a very neat idea, as it allows users to store their own music on the Xbox and all the saved games they can muster. However, it also costs a lot to implement. For the average Xbox user, 99% of the space on the hard drive goes unused. Microsoft could have accomplished the same game-saving abilities of the 10GB hard drive if they bundled a $20 memory card with the console instead of a hard drive. This hard drive could be put to better use had Microsoft put PC-like features into the unit, however that will never occur with the current generation of Xbox consoles.

Microsoft gambled on the Xbox and they lost. The Xbox has not sold, and is completely dominated by the Playstation 2 and GameCube in every part of the world. Microsoft has invested billions in the development and production of the console, and they still are losing money with every console sold. The recent price cuts only further the dent in Microsoft's wallet. The Xbox is not a computer, and it's not a good gaming machine. What is it? I'm not quite sure.. but what we can be sure of is that it will never be anything, because Microsoft has not enabled the machine's software to be upgraded, although hackers have hacked full Linux distributions onto it.

After a year on the market, the Xbox is in the prime of its life, and frankly it isn't much of a prime. Microsoft bet the bank on this baby, and it will suffer because of it. Even the Xbox's own creator left Microsoft. Maybe Microsoft will get it right the second time around.

Let this retard have it guys,

Reviews@icrontic.com

The owner has already answered a bunch of emails from TXB members in a very a sshole manner, resorting to name calling and stuff.

-jarvis

**faceoff508** · 10-21-2002

hmmm i didnt read the whole thing but he seems to be a fanboy

**Evil_Dr_Beefy** · 10-21-2002

C'mon ....not everybody a fanboy..the box is getting rip left and right......i was suprized about how many people dislike the xbox. Well, a few AAA titles should shut a few people up...

**Jarvis** · 10-21-2002

Originally posted by Evil_Dr_Beefy
C'mon ....not everybody a fanboy..the box is getting rip left and right......i was suprized about how many people dislike the xbox. Well, a few AAA titles should shut a few people up...

Come on, not everyone [is] a fanboy. The Xbox is getting ripped [up] left and right. I was surprised about [the] [number] of people who dislike the Xbox. Well, a few AAA titles should shut a few of those people up.

Read the article. Post your thoughts about the article (maybe throw it through a spell-checker first).

-jarvis

**Nat** · 10-21-2002

That's a crock of **** if I ever heard any.

**Demon-X** · 10-21-2002

Originally posted by Evil_Dr_Beefy
C'mon ....not everybody a fanboy..the box is getting rip left and right......i was suprized about how many people dislike the xbox. Well, a few AAA titles should shut a few people up...

PS2 came out a year before XBox

Xbox has been out in the market for less than year.

You also forget to mention that GC is also getting ripped left and right.

Xbox numbers and GC numbers are only about 300,000 apart WORLDWIDE.

Do your research first before posting.

**Nameless** · 10-21-2002

The owner has already answered a bunch of emails from TXB members in a very a sshole manner, resorting to name calling and stuff.

Well this may be why...

Let this retard have it guys

If you resrt to name calling so will he.

Now, why do you people care so much what other people think of the Xbox?

**Jarvis** · 10-21-2002

Originally posted by Nameless

Well this may be why...

If you resrt to name calling so will he.

Now, why do you people care so much what other people think of the Xbox?

i'm calling him a retard because of how he:

1) wrote an article with has no credibility, validity, or accuracy
2) replied to simple questions about the article with outright name calling
3) he is a "journalist" and should have a thicker skin

We "people" care because those MS slander/falsifications could have an effect on people who are interested in purchasing an Xbox. If the article would have been written with an ounce of truth or research then I would have no problem with it. I do have problems with outright lies and assumptions on the part of this journalist.

Now, why do YOU care so much what we "people" think of this guy? Get off my back and go back to gaming age or make constructive posts.

-jarvis

**bballmaniac15** · 10-21-2002

<i>Playstation 2 has more games, and more importantly more good games</i>

whose to say that ps2 has better games? One person might love GTA3 while another might hate it... that shows you how "fanboyish" this article is

**Jarvis** · 10-21-2002

Some dialogue between TeamXbox forum users and the owner of this site (yes, he sounds like he's 15, i know!) Really doesn't sound like a journalist at all, let alone the owner of this website.

Fan:

Just wanted to point you to this article recent article:

http://money.cnn.com/services/ticke...55848.07953.htm

How can Xbox be deemed a failure if Microsoft's profits actually rose since it was released? Obviously folks are buying games, otherwise they'd have seen monumental losses. Apparently that expensive hard drive you mention has paid for itself. And, if you'd ever actually spent any extended periods of time with an Xbox, you'd realized that it's uses go far beyond services to save games.

Also, much of that Adrenalin Vault article is conjecture. MS is beating GameCube by a hair's breadth on the worldwide scale, though the recent increase in sales for the GC thanks to Mario Sunshine are making it look like the GC is the hotter console. And how can they say what sales will be like at the end of the year? Trust me, wait a week -- Xbox sales will be way up thanks to their new bundle and Xbox Live... which you don't even mention. Oh, and Xbox sales are about 10 million worldwide, compared to about 25 million for the PS2. That's not a bad deficit considering how poorly the Xbox is doing in Japan, and the fact that the PS2 had a year's head start.

Anyhow, your article is obviously based on opinion, which is fine, but I'd encourage you to also get your facts straight in future pieces.

-tim xxxxxxx

Response:

Your letter is so grossly inaccurate I don't quite know how to respond. The PS2 has sold over 40 million units worldwide. That is a fact.

Microsoft is a huge company... in case you didn't know, they existed before the Xbox. The losses incurred by the Xbox didn't make Microsoft as a whole lose money.

Anyhow, your article is obviously based on opinion, which is
fine, but I'd encourage you to also get your facts straight in future pieces

Wow. Get your facts straight before emailing me please. You have no clue what you're talking about.

-Keith "Mortin" Whitsitt
www.Icrontic.com

Fan:

Can you please point me to a story saying that the PS2 has sold 40 million units world-wide? To my knowledge Sony has never said how many units it has sold, only how many units it has shipped.

Response:

http://news.com.com/2100-1040-958600.html

-Keith "Mortin" Whitsitt
www.Icrontic.com

Fan:

Read the title:

"Sony has shipped 40 million PlayStation 2 game consoles worldwide, after passing the 30 million mark on May 5. "

It says SHIPPED. Sony has never commented on how many consoles have been sold. If you walk to your local retailer you'll see 5 or 10 PS2's sitting on the shelf. All those are included in that 40 million figure.

Yet again, please get your facts straight.

-tim

Response:

God you are such a moron

-Keith "Mortin" Whitsitt
www.Icrontic.com

New TXB Fan email to him:

I just read your article and some of your responses you gave to a recent e-mail you received.

You can check what they posted here:

http://forums.teamxbox.com/showthread.php?
&threadid=142293&pagenumber=2

I don't know if he's posting all the facts correctly, but if he is, then I suggest you and your team start meeting on how to handle e-mail responses. You are a website that many people visit. A website that is entitled to opinions from your readers. I ask you, what kind of website are you running when someone asks a question, and you respond by calling them a moron? Doyou consider that professional? There are some great, informative gaming websites out there...many of which I'm sure you and your team have looked atin hopes of becoming one day. Do you think they became the sites they are today by treating their readers with such immaturity? So, he disagrees with your article, and asks that you clarify some things...so what? Does that give you the right to jump down his throat? Maybe so, but you and your staff will NEVER get the respect you want through actions like that.

Response:

Constructive criticism is always welcome at Icrontic however, being a
tard and a half is not. We will lay the smack down if you troll.

-Keith "Mortin" Whitsitt
www.Icrontic.com

Fan:

Hmmm....well, I just looked at what he posted, and, unless there were some things he didn't include, I don't see where the guy was acting like, as you say "a tard and a half". From what I saw, you called him a moron after he pointed out the number of PS2 units shipped, not sold. How is that being a troll? I'm not asking out of defensiveness, I'm just wondering. Oh, and that's the kind of stuff I'm talking about. You want credibility in the industry? Don't blindly use words like "tard" to people that you don't even
know. It's definitely not a respectable way to talk to people.

Response:

Boo hoo. Cry me a river.

-Keith "Mortin" Whitsitt
www.Icrontic.com

Totally unprofessional. A journalist always has to stick with logical well-formed arguments. You need to have to be able to concede points while bringing up new ones for yourself all the time. The quickness with which the writer starts name calling shows immaturity.

-jarvis

**robnyack** · 10-21-2002

oh wow, a microsoft basher!

another person hoping for a microsoft failure. what a friggin surprise.

*yawn*

tell him to come see me in 2005.

**Nameless** · 10-21-2002

Originally posted by Jarvis

Now, why do YOU care so much what we "people" think of this guy? Get off my back and go back to gaming age or make constructive posts.

-jarvis

I actually do not care what you think of him. Do not tell me to make constructive posts when you wasted time in posting this drivel and telling ppl to email him

.

**Jarvis** · 10-21-2002

Originally posted by robnyack
oh wow, a microsoft basher!

another person hoping for a microsoft failure. what a friggin surprise.

*yawn*

tell him to come see me in 2005.

I suspect you'll be very correct in 2005 my friend.

-jarvis

**FuNkY mOnK** · 10-21-2002

Wait till Microsoft buys most of the game developers. Money talks bulls hit walks. and theres more money than bulls hit with Microsoft.

**EHWfedPres** · 10-21-2002

That story is 300% bullshyt.

If people hate Microsoft so much, tell the idiots to stop using Windows and get a damm Mac, because im sure some of these immature retards have no idea what they are talking about...

**Game_Geek** · 10-21-2002

Originally posted by EHWfedPres
That story is 300% bullshyt.

If people hate Microsoft so much, tell the idiots to stop using Windows and get a damm Mac, because im sure some of these immature retards have no idea what they are talking about...

**Reclaimer** · 10-21-2002

Some of you people are insane I'd like to let you know that.
Some people are taking this way out of context. Look. Jarvis wanted to show us that there is an article written by a journalist that is completely unbiased and utterly wrong. There is nothing worse then bashing, yes, but it's worse when you try to make your opinion and backed it up with false information and baised notions. Here is an opportunity to let this man know about his article he wrote. A chance to let him know that you can't write garbage and expect everyone to fall before your feet. I'm going in. I'm going to enter the battle and let him know he is wrong. Of course I will try to remain diplomatic, but if I have to sling mud, then so be it. I encourage you all to participate in this. You are supposedly an xbox fan, that's why you are at this site. You have the system, then you should stick up for it. Here's the chance, the internet as our conveyence. Let's roll.

**ZooLaBuS** · 10-21-2002

My letter to him:

This is in accordance to your article “The Xbox Failure”.

I would like to just point out a few ideas that I thought you might consider in your future opinion. I respect you current opinion but there are a few things that I believe you are not taking into consideration.

First you are talking like Xbox is already dead and there is not a chance in the world that it will ever be any good. Obviously you are not an Xbox Live beta tester! You need to see that the Xbox has not even been out a year and its largest project, which the Xbox was built upon, is about to launch. Xbox Live is what the Xbox was made for, the online dream for consoles. I agree with you, if there was no Xbox Live/online, then I would have to say Xbox sucks. How can you judge the console yet if it is not even doing what it is fully potential of or what it is built for?

Second you complain about Xbox’s security? How can you do this? PS2 has the worst security ever known. A large amount of gamers for PS/PS2 own Mod-chips and copied games. Mod-chips were released a lot sooner for PS2 than for the Xbox. Sony does absolutely nothing to stop Mod-chips from being sold. They don't care. I respect MS for at least trying and slowing down the process. Without their security Xbox would run Windows XP and people would be able to buy a gaming machine for $200. MS is doing a good job so far, including shutting down the largest Mod-chip website.

Last is the Xbox hard-drive. It is a major part of the Xbox. Without it many games would not be possible because of the amount of space they require, the cache they use, and content they store (ex. Blinx, Halo, Morrowind). Lots of gamers also use the HD for music and have full CD’s copied. It also plays a major role in Xbox Live, again, the basis of the Xbox. It will be used for downloadable content, including, new levels, maps, characters, updates, and much more. This would not be possible with a “$20 memory card”.

Just thought you needed to consider these factors first.

**Big Took** · 10-21-2002

Zoo, Very well said. I have to concur with people in this thread in echoing the opinion that the Xbox is far from dead. I'm a PS2 convert who bought an Xbox last Friday - the new bundle is a fantastic deal.

Now if someone can confirm that "The Two Towers" from EA will eventually arrive on the Xbox, my PS2 will get packed up for good and listed on eBay.