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Opinion: Aggregation Vs Portals: Where Microsoft Is Going Wrong With Xbox Live
by Tadhg Kelly
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May 30, 2008
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[In this impassioned opinion piece, Lionhead and Climax veteran Tadhg Kelly examines the recent Xbox 360 Live game de-listing changes, suggesting three major problems and six notable solutions that would silence the 'death knell' for Microsoft's digital download service.]
In perhaps the most interesting news of recent weeks, Microsoft have announced that they are going to start de-listing games from Xbox Live Arcade based on two criteria: Sales and review scores.
In their view this means that they are trying to bring some overall quality back to the product line, probably because they've had consumer feedback that says they are tired of wading through lots of mush in order to get to the good games. In my view it's likely the death knell for Xbox Live Arcade as somewhere to go for great games and is leaving the door open for Sony or Nintendo (or someone else, Apple perhaps) to take their crown.
It's also a move that's been a long time coming. If anyone has spent any time browsing through the interface of Live in the last few months, it's becoming an increasingly sodden experience. There are long, poorly maintained lists of product in there. There are a few notable remakes making the headlines (such as Rez HD) but also a lot of really very bad product (such as the Battlestar Galactica game, or the port of Marathon) and the service has lacked focus for quite some time.
But why is proposing to remove the crap a death knell move? On the surface it sounds like a sensible plan because it means that the consumer experience would be improved. Indeed. But the problems are threefold:
1. Any such system is going to be wide open to collusion, politicking and will reward only those companies who are more sales-driven and ruthless about getting good review scores.
2. It reduces consumer choice.
3. It doesn't solve the main problems.
Let's tackle these in turn:
1. Collusion.
The unfortunate truth of the retail games industry is that it relies on a lot of wheel-greasing, which is why it tends to favour higher-end publishers and developers with deep pockets. It's no great secret that review scores can often be bought indirectly through the means of exclusive interviews, junket goodies and even potential job opportunities for reviewers to become game developers. It's also no great secret that reviewers tend, as a group, to have certain in-built prejudices against certain types of game, and they tend to think and award scores like a community.
This behavior is arguably necessary in a retail environment where the buying power of the retail chain is largely concerned with what bulk orders for volume they can place. With only limited shelf space up for grabs, a publisher looking to maximise its shareholder returns has to take the view that they need their product in prime position.
Indeed it would be irresponsible of them as a company not to do that, and so the only questions become whether what they're doing is legal, and whether they have genuine ethical concerns about some of the tactics that might be deployed. In most cases the answer to that second question is "maybe, but not enough to make them stop doing it". Publishers are not evil, but they operate in a difficult environment.
So this behavior model will clearly also translate across into Xbox Live Arcade. XBLA is already a constrained retail model (see point 3 below) and the threat of de-listing only intensifies that pressure. So what will happen is that sales-oriented developers will behave like retail publishers and start taking steps to get those high review scores. They will also continue to establish their personal relationships with members of the Xbox team so that they can have a champion inside the platform itself, because it's easier to de-list a game from someone anonymous rather than from your friend at developer X who'll phone you hurt and angry.
Lastly, and far more seriously, it means that the developers will increasingly pitch for products that they think Microsoft will like, or products that Microsoft themselves might think should be on the service, and so XBLA will become a much more for-hire service. While this is a valid model for a smaller digital service like interactive TV (and is basically what I do for a living), I'm not convinced that it's a model that should be applied to a console gaming audience.
2. Consumer Choice
Clearly this move affects consumer choice. Less games available for sale means less games available for browsing, which means more of a hit-driven mentality in an online space. This will mean less sales. I don't want to bore my readers too much with talk of the now-cliché Long Tail effect, but the fact remains that Amazon, Itunes and Netflix all consistently report that they see more sales as whole from their long tail aggregate than they do from their hits.
The problem here is not that channelling consumer choice is a bad thing, it's that channelling choice should only be engaged in where it is necessary. In retail it is necessary because of the physical costs of distributing product and maintaining stores with high rent. In television it was necessary because the physical constraints of the technology meant that all interests simply could not be served (though this is now slowly changing).
In the online space it is not necessary. The cost of distribution is negligible and there are no technical constraints of broadcast technology. Ultimately an XBLA game as a product is just another small portion of data on a disk space on a RAID rack somewhere in Redmond that gets called up and downloaded as required. Delisting such product saves practically nothing and gains the consumer nothing. (And it doesn't answer the question of what happens to the consumer who bought a game which was subsequently delisted, only to have their Xbox hard drive fail at a later date: How do they get their game back?)
Which leads me nicely into:
3. The Main Problems
The real problems that Microsoft have (which de-listing is not going to solve) are all to do with key choices that they have made in the construction of XBLA for Xbox 360, and how those decisions are driven by portal-based thinking rather than aggregator-based thinking.
Portal-based thinking is basically the headset that tries to take the retail and magazine-based view into the internet. Portals try and push selected content out to their readers in a managed fashion. It inherently is driven by the assumption that consumers need to be sold to, and consumer-experience needs to be guided with studies of "journeys" and so forth. Portals worry a lot about managing the user expectations. Yahoo is a good example of portal-based thinking.
Aggregator-based thinking is the reverse. It's the headset that tries to provide the best tools for the readers to find what they want. In the aggregator model, the consumer and his friends are the sales people and the "journey" is unimportant. What's important is that there is enough content to be found, and that it can be accessed easily. Digg is an example of aggregator-based thinking.
Microsoft clearly have always thought of Xbox Live as a portal. This has led them to a number of decisions:
1. They have always throttled releases. This is a leaf taken out of Nintendo's old playbook with the NES, wherein you manage the release pattern of games so that every one gets the chance to shine. This results in a lot of developers clamouring to get in the door, and a lot of collusion-driven behaviour as a result. It also results in Microsoft starting to try and direct traffic in order to raise quality, which results in a highly managed catalog full box-checking (as in they fulfil perceived genre or other criteria) bad games. In short, the throttled release decision is largely responsible for the poor quality of XBLA content.
2. They have focused the whole experience on the Xbox itself. You buy Live games from the Xbox 360, you find them through it and use it as your gateway into the wider world. This was an understandable but incredibly stupid decision made a time when they were trying to sell the new console.
At that time it probably seemed to them that they really had to get people to look at their dashboard to get into the brand, but the problem is that using a console joypad as a primary means of finding and sorting large quantities of content simply sucks as an experience. It leads to short, stubby menus, long tedious scrolling lists and a general touchy-feely air to the design (remember, portals think "journeys" are paramount). It is simply not suited, nor will it ever be, to presenting large volumes of content.
Imagine if Apple had created the iPod platform without iTunes and insisted that we all bought our music through the click-wheel interface and small screen of the iPod itself. That's largely what Microsoft have done with insisting on tying games purchasing to the Xbox itself.
3. The points system. XBLA points are a good idea, not dissimilar to pay-as-you-go phones and other similar models, and they allow gamers under the age of 18 (and therefore sans credit cards) to participate in the network, buy games that they want with their pocket money and so forth. The problem is that points are compulsory. In trying to manage the customer journey again (thinking like a portal) they have created a barrier for consumers who simply don't want the hassle. Also the fact that the Gold subscription for online play does work with credit cards but the purchasing of games does not probably creates consumer confusion and therefore aversion. It should be as easy as one-click to buy a game on XBLA.
It should be noted here that I don't think Microsoft are trying to be evil or mean about who gets to make games for Live. There is, after all, the example of XNA that shows that they are at least trying to embrace with the content in some shape or form. I just think that they can't seem to get the portal model out of their heads, and that's what's killing them.
So Is It Too Late?
Is it too late for XBLA? Well I hope not, but I suspect it is. Microsoft increasingly have competition from Sony (whose online play is free after all) and now Nintendo - who have announced a very interesting scheme for WiiWare that is squarely aimed at the sorts of innovative small developers that Microsoft wanted to attract but ultimately repelled with their portal structure.
Microsoft had an early-market advantage with XBLA 3 years ago, but their competitors have now matched (and may supercede) their offering. And with sales of the 360 console itself being caught by PS3 and out-classed by Wii, I would imagine there isn't much of an appetite in Redmond for large-scale changes to the system.
Ultimately it comes down to whether Microsoft as a culture really has the ability to think in an aggregator mindset, and whether they have a continued appetite to be in the console business at all.
Solutions
If I were to propose some solutions, they would be these:
1. Build a web portal that allows consumers to find, buy and recommend games to each other. Change the Xbox 360 Dashboard to allow syncing of web activity and Live activity such that if I buy a game via the web portal, my 360 will download that game automatically the next time I log on. Decoupling game purchases from the console dashboard is the one problem that they really need to solve.
2. Allow consumers to buy games via their credit card directly. This ties into the web portal idea, with the overall approach being to allow easy purchases with as few clicks as possible.
3. Don't de-list content. Instead provide better filtering tools on the Xbox's portal.
4. Provide a simple means for users to rate games directly rather than relying on professional reviewers. Tie this in with the filtering tools in suggestion #3.
5. Stop throttling releases. It is likely that throttling has built up a regular enough audience who now check back every week for the new game, but that is small potatoes compared to the damage that throttling causes.
6. Simplify the distinctions. At the moment there at least two strands of Live's online games proposition (Xbox Classics and XBLA) and soon XNA will be a third. These are pointless distinctions that make lots of sense to a marketeer or someone who works for Microsoft (again: it's "journey" based thinking) but make no sense to consumers.
To a consumer it's all just "games" and it's better for them if Halo and Hexic are sitting beside each other in the list than having to understand Microsoft's logic in order to be able to overcome their own aversion. This especially applies for XNA, which, going on the current model, is likely to only ever be of interest to XNA members owing to the levels of aversion that it will cause.
7. Fix the developer deal. Royalty-changes were an accounting-based manoeuvre but they have proved horrendously unpopular with the development community. Now that Microsoft has real competition from Nintendo and Sony, developers are looking elsewhere to see which network offers the best deal. And that doesn't even begin the cover the possibilities if developers look even further afield to iPhone, Facebook and many other markets that offer a much better cut of the action.
Conclusion
As you can see, Microsoft have effectively hoisted themselves by their own petard when it comes to XBLA. In trying to manage consumers and overcome what they believed was an image issue, they have created a network that organisationally can't actually sell a lot of games. Their solution is to reduce the catalogue, but this is essentially an admission of failure on their part.
With the 360 probably having peaked in terms of overall appeal and other console providers and technology companies now delivering credible alternatives, it is up to Microsoft to rethink their whole strategy and decide whether this is a sector of the business that they really want to be in any more.
[Tadhg is the senior game development manager for an interactive TV platform based in the UK. He has previous worked as a lead designer at Climax and scene designer at Lionhead. Tadhg also writes irregular articles for his industry blog.]
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The main body of the article has 3 points:
"1. Any such system is going to be wide open to collusion, politicking and will reward only those companies who are more sales-driven and ruthless about getting good review scores."
-It's hard to see how you can use "collusion" and "politicking" to cause a game to have high attach rates and good reviews. If that's possible, then the entire industry is already screwed. See recent controversies like Gamespot employees being fired for giving bad reviews. This is an industry problem, not an Xbox Live problem.
"2. It reduces consumer choice."
-Mostly wrong. Customers (via conversion rate) and the industry (via reviews) are both given a chance to express their opinions. If the game sells well regardless of reviews, it stays. If a game had good reviews regardless of sales, it stays. If a game both sold poorly and got terrible reviews, it's hard to justify saying consumers are somehow hurt by the removal of this game when they're already voting with their wallets that the title isn't worth purchasing, and on top of that there's still the review safeguard to boot! Also, yes there is a cost of distribution in the form of the constant license re-negotiations Microsoft has to go through. For example, they're currently swinging a solution to the DRM issue into place that required they basically repurchase the rights from every single supplier to sell the game a second time. As Major Nelson said on his podcast, this was neither easy nor cheap. I suspect an extra reason Microsoft is de-listing some titles is to reduce their overhead, and we could argue all day about overhead versus consumer experience.
"3. It doesn't solve the main problems."
-It does and it doesn't. This will get rid of some of the clutter, but it's very true that Xbox Live in general needs to have better systems for sorting content. De-listing is one tool for improving the way the service lists titles, but it's certainly not a magic bullet that will completely solve the issue.
A final two points, on just how broken this article is:
1. The article suggests there needs to be a way for the community to have more say in the sales and approval of games. Microsoft is already doing this with the XNA rollout this holiday season. Was the article written before this announcement?
2. The article says 360 has "peaked". I'd like to know exactly what this is supposed to mean. Since the release of GTAIV, 360 has once again passed PS3 in sales in European markets, meaning the console still has plenty of "leg" to carry on. The amount and sale of content over Xbox Live grows and breaks records almost every day. 360 looks to challenge sales records yet again this holiday season with titles up to and including Gears of War 2. What exactly has "peaked" about 360 or Live?
But I stopped taking anything you had to say seriously when you suggested that the Marathon: Durandal port was bad (which it wasn't)
Microsoft has every right to control the content on their platform as they do. There have been so many direct ports from companies like Digital Illusions of really old games like "track & Field" that simply don't belong on XBLA.
Microsoft has been cutting back on the amount of titles they let through. It used to be 2 titles every Wednesday, now its about 1 every week or so.
Microsoft has good intentions with making moves to avoid these direct ports in favor of quality content with real value.
I recently went through the XBLA submission process, and MSFT is really serious about only letting titles that offer something new to the gamer.
And as far as not being able to buy games with the credit card, are you referring to the purchasing of Microsoft points that are in turn used to purchase the title?
Also the 360 dashboard is so freaking slow, but I guess what can you expect from a company that doesn't know how to make a decent OS. Who wants to find games in a list when the list has to be refreshed every screen or two, and takes forever to refresh? Not I!
That said, as the Producer and Project Lead for Marathon: Durandal, I must ask why you felt it necessary to attack my game? On your own blog, you state it's Unplayable. I would like to hear why you feel that way.
We took extreme steps to ensure it was not only faithful to the original, but had superior control. Bungie was kind enough to share with us their exact control scheme and math. We can guarantee the game runs at a solid 60 frames a second always. As a winner of IGN's Best of E3, I feel your comments are unfounded.
There are problems with Xbox LIVE Arcade, and even problems with Marathon, but "Bad" and "Unplayable" it is not.
The larger the inventory the more inevitable that there will be some games that nobody wants. Logically the failing and non-selling items should be removed. That does not imply the network itself is failing.
http://www.neowin.net/forum/lofiversion/index.php/t499043.html- Tadhg is upset because Sony released a product that is 'not ready.'
http://slashdot.org/articles/02/01/07/2034218.shtml?tid=99 - Tadhg is upset because Blizzard didn't release Warcraft 3 in time. They didn't release it because that it was not ready.
Now XBOX Live delist a few games, that nobody is even playing, and Tadhg makes a bunch of wild and unfounded assumption on it.
It seems Tadhg is one who will never be happy with anything in gaming. He should consider a new line of work. Exactly why is Gamesutra wasting space posting his opinions?
I have to disagree with most of what he said, although i do have a felling the xbox 360 is going reach its peak in a few years... when the next gen M$ console comes out :P.
Collusion: the point of using metacritic is that it provides a weighted score taken from multiple data-sources. This (in theory at least) makes it a lot harder to game the system - especially given the smaller budgets of XBL games (i.e. less payola available)
Consumer Choice: Reduced choice, reduced sales: I'd argue that this is only true where the sales mechanism makes filtering and searching easy. Which is clearly not the case with the current XBL system.
Equally, removing the limits on the release schedule introduces higher risks for developers. There's obviously a limit on how many games people are willing to buy in a given time period. Saturating the market may not affect Microsoft's overall revenues, but individual developers will generally get less money.
(this is also a question for the long-tail principle - how well does it work for game developers as opposed to the game aggregator? A slow trickle of money over 5 years may work well for a book author or musician: it doesn't work as well for a software development house which needs cash upfront to fund the next release, unless they have a large portfolio of existing titles to to feed on)
The main problems:
Portal vs Aggregator: this is true to a degree: I think XBL's main problem is that it needs to be usable on SDTV - an effective resolution of 640*480. This effectively forces XBL towards portal-style mechanisms, as it's obviously harder to include all the surround that an Amazon-style interface offers (recommendations, similar genre, best-sellers, other people's buys, etc).
I've already discussed release throttling and why it's necessary: therefore, what's needed is a better mechanism to filter out poor quality content before it arrives on XBL. The suggestions around XNA sound like a good way forward on this - i.e. have a large group of users decide what's worthy of commercial promotion.
Buying XBL games via a 3rd party system is bad for several reasons. First, it takes people away from their Xbox. Second, it's another interface to manage and keep in sync. Third, it's unlikely to be used by a large segment of the user population. It's akin to buying petrol for your car in cans and carrying them home to refuel. The iPod comparison isn't a great one either: unlike Xbox 360 content, you can do stuff to purchased media on iTunes: play it, tag it, define playlists...
Proposed changes:
1) True to a degree: something more like Amazon is required - preferably with the aid of aggregated stats (most played/most achievements/etc) to help promote popular games. Another key is to get better presentation and more information for individual games: fullsize screenshots, more text and in-game videoclips would go a long way to improving matters.
As per above, I think a web portal is a no-go.
2) Buying with credit card: I strongly disagree here. I don't like the points system (changes in exchange rates don't result in a change in price for non-US people like myself, Microsoft hold onto any unused points), but it's a working, standardised system which works across the globe: there's no need to translate prices into the local currency.
3) Agreed. Removing content should only happen when licencing agreements expire
4) Agreed: user feedback and ratings should be built in as part of 1)
5) Disagree - see above. As a developer, would you release a game knowing that there's 20 other titles simultaneously vying for first-week revenues? XBLA was perceived as a saviour precisely because it offered a walled garden away from the floods of software (free, cheap, pirated, etc) found on the internet. A better up-front filtering mechanism is required instead.
6) So: more filtering, but less distinctions? Not entirely sure how that's meant to work! I think the idea of 'it's all just "games"' is a silly one: something like Psychonauts is very different to Bejeweled. There needs to be categories (e.g. Xbox, XBLA, XNA) and genre definitions (arcade, action, puzzle, etc) offer a useful first-cut filter, but there also needs to be relationships between items, which XBL doesn't currently offer.
7) Developer deal: true, but quality assurance costs money, and it has to come from somewhere. The idea is presumably for high-risk content to bubble up via XNA, though this avenue is likely to become heavily saturated in quicker timescales than XBLA did.
Bruce, it wasn't out of spite I simply used the game as an example. I really didn't like the basic feel of the controls of your game, sorry. If you want to give me an email haranguing over it, my email address is on my blog (http://particleblog.blogspot.com)