Microsoft EU: "Blu Ray Reminds Us Of Betamax"

[JTK]

http://service.spiegel.de/cache/inte...411855,00.html

INTERVIEW WITH XBOX'S EUROPEAN MANAGER

"Blu Ray Reminds us of Betamax"

Chris Lewis is the Microsoft executive in charge of the European market for the company's Xbox gaming consoles. In an interview with SPIEGEL ONLINE, he makes digs at competitor Sony, he laments the trouble his company has had with the Xbox 360 in Japan and discusses the tastes of German gamers.

SPIEGEL ONLINE: How many Xbox 360s have been sold so far world-wide?

Chris Lewis: By the end of June we will have sold between 4.5 and 5.5 million units worldwide. We were in 19 countries when we launched, we're already in 30. We'll have 80 high-definition games on the market, including games downloaded from our online marketplace "Arcade," by the end of June. It's great that Europe was right up there with the United States and Japan for launch. Europe is the most critical geography to our worldwide success.

SPIEGEL ONLINE: The market you're probably least happy about is Japan. In the first weeks of 2006 more PS2s and Gamecubes were being sold there than Xbox 360s.

Lewis: It's a tough marketplace for us. It's critical for us to get out there with the right games. We're making steady progress, but it's tough. We are making sure that we have the right content, the right people, the right marketing in Japan.

SPIEGEL ONLINE: Sony's French management recently announced -- and then retracted -- a price point of about €600 for the PS3 in Europe. Would Sony have a chance with a price that high?

Lewis: We don't want to get, nor are we, distracted by what they announce or don't announce. We both know that what they say may not become reality. It's interesting, but from our point of view we're focused on what we're doing. I don't really care when they launch. I'm confident that we're on a good journey. The rhythm we're dancing to is our own. The consumers are voting with their wallets. We have the next generation console, it's here now, in high definition, with great content. Let's wait and see what actually comes through.

SPIEGEL ONLINE: But the PS3 will contain a Blu-ray DVD-player -- which might actually attract customers ...

Lewis: Blu-ray right now reminds us of another technology from Sony: Betamax. A bit like VHS -- we think that HD DVD is the format that consumers, film studios and publishers will embrace. As you're mentioning the cost of Blu-ray -- we think it's about giving consumers choice, we think it's about not necessarily asking them to pay over the odds for a technology that, at the moment, is unproven. It's an interesting bet to play -- we're watching what goes on, but I think we're offering a broader, more flexible choice that doesn't burden the consumer with a cost element that may be wasted.

SPIEGEL ONLINE: Is the HD-DVD-drive for the Xbox 360 still in the pipeline?

Lewis: Absolutely, yes. We'll say a little bit more about it at E3. It will give people access to HD DVD.

SPIEGEL ONLINE: But the 360 doesn't have an HDMI-Interface -- so you won't actually be able to watch any HD DVD Movies on it because the obligatory copy protection mechanisms are missing.

Lewis: All I can say to you is -- there are interesting developments in the pipeline. We will make sure that the HD-DVD-peripheral device will meet all the requirements for consumers to enjoy high-definition DVD playback.

SPIEGEL ONLINE: Meaning, you will be able to watch Hollywood movies in HD through your Xbox?

Lewis: Yes.

SPIEGEL ONLINE: So the drive will have its own interface?

Lewis: You will hear a lot more about that question at E3.

SPIEGEL ONLINE: Some Web sites have published images from a Microsoft brochure allegedly handed out at the recent Game Developers Conference, images of a camera similar to Sony's EyeToy. Almost simultaneously, Sony has announced that the PS3 will feature videoblogging functionality. Are you planning the same for your online service Xbox Live?

Lewis: Again, we're not making any announcements at this stage. All I can say is "watch this space."

SPIEGEL ONLINE: Eyetoy is very successful in Europe and Japan, and so is Nintendos DS, the "Buzz"-button-controllers for the PS2, etc. People seem to enjoy different modes of interacting with games than the classic controllers -- which Nintendo is banking on with the Revolution console. Has Microsoft missed an important development there?

Lewis: I agree with the statement that people have a strong appetite to work with peripheral-based gaming in the way you've just described. We're aware of that and we'll make the right developments to capitalize on that desire. It's important for us to appeal to all types of gaming genres, family groups, younger players, older players, men and women. Our investment in the types of areas that you're talking about will be critical for our success.

SPIEGEL ONLINE: Can you give me a rough estimate on how many people actually do log onto Xbox Live with the 360?

Lewis: With the first Xbox, about 10 percent of customers logged onto the network. With Xbox 360 about 50 percent are connected to Xbox live. Ten-million pieces of content like trailers, game demos, music videos and Xbox Live Arcade titles have been downloaded from the online marketplace since launch. That's a faster level of download than iTunes had when it launched. That shows how central online gaming is to Xbox and how enthusiastic people are about participating in that. And the whole online entertainment thing is not just about games. It's about music -- we've just announced an exclusive partnership with Epic Records for example.

SPIEGEL ONLINE: You've just bought Lionhead development studios. Will Peter "Populous" Molyneux stay on board? After all, he's already left his own company once before after it was bought by Electronic Arts.

Lewis: Peter loves working with us. We've worked with him for some time already. He's going to remain working at the head office here in Guilford as head of Lionhead studios and he's as exited about it as we are.


SPIEGEL ONLINE: Is this move -- after having bought studios like Rare ("Goldeneye", "Kameo") and Bungie ("Halo") -- a step towards securing exclusive content for the Xbox 360 -- in other words -- are you learning from Nintendos restrictive licensing policy?

Lewis: Great, exclusive content is critical for us to win. One of the key lessons we're learning all the time. That appeal is different in different parts of Europe. The German market has slightly different tastes to the market in the UK or the Spanish market. It's important for us to map content in the right way.

SPIEGEL ONLINE: What's Microsoft's view of the German gaming population?

Lewis: Clever fun is right up there in terms of priorities. We do very well with our strategy game franchise "Age of Empires" there. You've got a huge, enthusiastic following for that genre. We are very specific about understanding what's important in each marketplace, and Germany's a great example of that.

Interview conducted by Christian Stöcker.

Now you get an idea where the lies and propoganda on certain forums comes from, as if there was ever any doubt.



Ok Chris, I get that they are the competition, but let's not say things we can't take back. Let's not write checks that you're not willing to cash.

Isn't this cute?

Sony should shoot back with a "Remember Windows ME? Yeah, we don't either..."


Finally, I will concede that Blu-ray does indeed have one striking parallel to Betamax:

It reminds me of Betamax as well, since it's a superior format and is being criticized by idiots looking to make a quick buck instead of siding with consumers.

At the head of this pack is, of course, Microsoft, followed by an ever more pitiful and desperate Toshiba and RCA/Thompson, who wouldn't know quality if it bit them in the ass.

HD-DVD wouldn't even be here today were it not for Microsoft. It would never have survived the debacles of IFA 2005 or CES 2006, and rightfully so.


Also, Betamax and Bluray are just better names than VHS and HD-DVD.

And again: What does Microsoft even know about home theater?

[zombie]

More desperation on the part of HD DVD. Quite sad really.

[JTK]

Originally Posted by nyg

More desperation on the part of HD DVD. Quite sad really.

Pathetic, actually.

Kind of reminds me of this: http://www.intellectualloafing.com/a...darguments.htm

[zombie]

If Microsoft thinks name calling is going to win it for them they're in for a big surprise! Look at all the companies in the BDA who could take jabs at them if they wanted to.

[JTK]

Originally Posted by nyg

If Microsoft thinks name calling is going to win it for them they're in for a big surprise! Look at all the companies in the BDA who could take jabs at them if they wanted to.

MS is used to playing dirty and being the big kid on the block in the computer world, but going against the combined might of Apple, Dell, Sony, Panasonic, JVC, Pioneer, Samsung, LG/Zenith, et al seems quite unwise to me.

I've seen enough of their tactics and rhetoric officially and unofficially on certain forums and the like that I just wonder when/if the BDA will finally get sick of it and consider some kind of action.

I wish they would. I'm thinking "shock and awe."

[zombie]

Originally Posted by JTK

I wish they would. I'm thinking "shock and awe."

LOL!

[georgir]

sad and pathetic to you, but to me it seems just irritatingly dumb coming from microsoft - they _should_ have nothing to do with hddvd/bluray at all. them taking sides, especially in such stupid statements, actually manages to make me angry. weird me huh?

[JTK]

Originally Posted by georgir

sad and pathetic to you, but to me it seems just irritatingly dumb coming from microsoft - they _should_ have nothing to do with hddvd/bluray at all. them taking sides, especially in such stupid statements, actually manages to make me angry. weird me huh?

No, heck, I understand exactly what you mean and I agree with you.

I'm a big stickler for truth, accuracy, and facts. I've long since grown to feeling the way you do with the lies, spin, misinformation, propoganda, and rhetoric like what we're seeing in the quoted piece, on certain forums, among other things.

[Xanog]

I don't know why, but it seems like most of the HD-DVD camp is just being extremely childish.

I mean, MS says that Blu-Ray=Betamax simply because they seem to be taking the videogame console market more seriously than the OS market. Blu-Ray is the better for entertainment, something that Windows has always strived off of, and it was Windows that made Bill Gates $80 billion, not the Xbox.

Universal Studios is being childish too! They jumped on the bandwagon for UMD, investing more money than even Sony did. Since UMD isn't the most successful format ever (not surprising since it's only supported on the PSP system), Universal puts all the blame on Sony, and is just supporting HD-DVD, because they have fully convinced themselves that Sony is bad.

I have to say, complaining doesn't help you win a format war, nor does comparing a format which lost because of lack of support with the format with the most support out of the new disc formats.

[twistedrc]

lets not get ourselves upset over this. the facts remain the same. blue ray is gonna womp all over hd dvd!!! 2 months and will all be laughing and drinking a beer watching a better quality!!!! so heres what i have to say to all the hd dvd supporters out there, "hahahahahahahahahahahahahahahahahahahahahahahahah ahahahahaha" ive got 2 kids im allowed to be childish on ocassion

[digital.view]

Originally Posted by JTK

Finally, I will concede that Blu-ray does indeed have one striking parallel to Betamax:

It reminds me of Betamax as well, since it's a superior format and is being criticized by idiots looking to make a quick buck instead of siding with consumers.

Also, Betamax and Bluray are just better names than VHS and HD-DVD.

There is one big difference. Beta didn't have capacity that VHS had -- and that's one of the big reason they lost. This time, Blu-Ray is taking a path of practical use. Not just technical superiority. Consumers don't care about pixels to the same level as practical use. I mean, could you imagine if Blu-Ray came out touting 1080p, cost more but held HALF the capacity of HD-DVD?

That would be following the same path of the Beta debacle.

Sony doesn't want to repeat those kind of mistakes. Thus, Blu-Ray holds the lead in capacity and technical superiority. And for that consumers will be more likely to pay just a bit more in cost because the total value is there.

Take away the larger capacity of Blu-Ray and it would lose that edge for the average consumer.

[JTK]

Originally Posted by digital.view

There is one big difference. Beta didn't have capacity that VHS had -- and that's one of the big reason they lost. This time, Blu-Ray is taking a path of practical use. Not just technical superiority. Consumers don't care about pixels to the same level as practical use. I mean, could you imagine if Blu-Ray came out touting 1080p, cost more but held HALF the capacity of HD-DVD?

That would be following the same path of the Beta debacle.

Sony doesn't want to repeat those kind of mistakes. Thus, Blu-Ray holds the lead in capacity and technical superiority. And for that consumers will be more likely to pay just a bit more in cost because the total value is there.

Take away the larger capacity of Blu-Ray and it would lose that edge for the average consumer.

The average consumer is not even a factor in this thing and won't be for many years to come.

[digital.view]

Originally Posted by JTK

The average consumer is not even a factor in this thing and won't be for many years to come.

Well, yes. But why not have them on our side from the start? That was my point. Don't give them a *reason* to look at the alternative. With Beta, the porn industry and consumer had *good/practical* reasons to choose VHS.

And do you want another aspect of the consumer?

How many times have we heard that HD-DVD is a familiar term because it contains "DVD" and that lexicon is relatively known by your average consumer? And because of this it will be a factor of luring consumer to buy HD-DVD over Blu-Ray. Right?

Well, my rebut to that argument is that the "average consumer" today is not the "average consumer" of yesterday. We have this thing called, the Internet.

And because of blogs, newsgroups, and greater and greater internet access from your average consumer. More people have access to information that wasn't as easily attained in the past. Research can be done by the click of the mouse. FUD by Microsoft, or any other entity, is pounced upon the moment it reaches the "airwaves." If PR used for nefarious reason. We'll find it.

So, I don't buy the argument that the term Blu-Ray can't be propagated to the consumer as a standard. We're much more technically savvy today versus yesterday.

Who knows? Sony might have won the Beta battle if there had been such a thing as the internet back in the early 80's. Fans of the company could have convinced Sony to change their ways for better of all parties. There was too much going on behind the scenes. And we all know how CEOs and board-member can sometimes make bad business decisions...i.e. superior technology alone doesn't always win unless there's more practical reasons to buy. Blogs and newsgroups could have vetted all that out, at least.

[zombie]

Originally Posted by digital.view

Who knows? Sony might have won the Beta battle if there had been such a thing as the internet back in the early 80's. Fans of the company could have convinced Sony to change their ways for better of all parties. There was too much going on behind the scenes. And we all know how CEOs and board-member can sometimes make bad business decisions...i.e. superior technology alone doesn't always win unless there's more practical reasons to buy. Blogs and newsgroups could have vetted all that out, at least.

You make an interesting point. The internet does play a factor in new technologies and that should not be underestimated. I think the internet was huge in providing people with the facts behind DIVX when it battled with DVD around '98-'99. No doubt it'll be an influencial for the BD vs HD DVD war.

[JTK]

Originally Posted by nyg

You make an interesting point. The internet does play a factor in new technologies and that should not be underestimated. I think the internet was huge in providing people with the facts behind DIVX when it battled with DVD around '98-'99. No doubt it'll be an influencial for the BD vs HD DVD war.

Agreed. Good points Digital View.

[AV_Integrated]

Originally Posted by JTK

The average consumer is not even a factor in this thing and won't be for many years to come.

I disagree with this completely. The first format to penetrate the average consumer's home and get the brand name and recognition will gain studio support.

PS3, by the end of this year, is likely going to be in 100 times more 'average consumer's' homes than HD-DVD. With only 40% of people using PS3 as a Blu-ray playback device... well, that still puts a ton of brand recognition out there right away into average consumers homes.

The average consumer won't just be a part of this format war, they will be the heart of it, I believe, and the reason why Blu-ray will be propelled to the top rather quickly.