The coming of the next generation Xbox is upon us. As a new set of consoles get ready to launch, what will Microsoft need to do to ensure a successful launch, paving the way for five, six, or even seven years of next-gen dominance? Being successful this time around will not be easy. There are four things Microsoft will definitely need to succeed against its rivals:
1. Double-Down on Kinect
The popularity of the Nintendo Wii changed the face of the video game industry forever, bringing forth an era of motion control gaming that is sure to excite casual gamers for years to come. This change forced Microsoft to launch its own motion control peripheral for the Xbox 360 called Kinect, the device proved to be a hit in the first 60 days of launch having sold 8 million units.
As of February 2013, Microsoft as shipped 24 million Kinects: Not bad for a device that only has one killer application, Harmonix' Dance Central. While there could be other successful games, they'd most likely find a home with casual gamers.
That's ok, though, because casual gaming is the market that's growing. With the ever growing popularity mobile franchises like Angry Birds and Temple Run 2, Microsoft will have little choice but to make Kinect a central part of the next generation Xbox. It is the perfect tool to attract the eyes of the casual market, because from experience, Kinect games do not require a learning curve, just jump in and play to your heart content.
Recent rumors of the next generation Xbox suggest Kinect 2.0 will be bundled with every unit. With motion-based gaming being the best way to tap into the casual market and the success of the first Kinect device as a standalone device, a whole new set of developers will be chomping at the bit waiting to design games for the Kinect when every Xbox user has one..
2) Finding The Right Price Point
The Xbox 360 did not succeed because it had a one-year head start on Sony's PS3, it's because Microsoft priced the console just right. The PlayStation brand is powerful and so is the PS3, but not powerful enough to get users to ignore the console's $600 price tag. By launching the next generation Xbox at a price point that everyone deems as satisfactory, Microsoft could maintain its repuatation as the more reasonable console to own in the eyes of gamers for the next 5-8 years.
Rumors have suggested a starting price as low as $299, along with a monthly subscription based model at $199. If you were living with your head under a rock for the past couple months, you may not have known that Microsoft is currently testing the waters with a $99 Xbox 360 where users are asked to pay $15 per month. Given the timing of the offer, it would make perfect sense that Microsoft had used the plan to introduce Xbox users to the idea of buying a console with a payment plan.
With increased competition from iOS and Android devices, Microsoft needs to do everything it can to maintain a competitive price point. With their massive install bases and the ability to sell games for incredibly low prices, game developers are finding tablets to be a great means for achieving success: Just take a look at Temple Run 2 for example, that game surpassed 50 million downloads in just 13 days. If Microsoft price the next gen Xbox too high, the giant from Redmond could potentially miss out on this frutiful section of the games industry.
3) Xbox Live's Liberation
Ever since Xbox Live came on the scene, there has been this daunting pay to play online subscription model that Microsoft chose to throw at gamers. It got even worse, when the company began to add certain services such as Hulu Plus and Netflix, only for Xbox owners to find out the only way they can use these services, is if they have Xbox Live Gold membership.
If Microsoft can find a compromise between making money from Xbox Live, yet allowing gamers to play online for free, the next Xbox could gain some new audiences. Sony has found a way to do this with PSN and PS+, one is free to play online, while the other is a subscription model that give subscribers added bonuses like free games and timed exclusivity to certain contents. No doubt Microsoft needs to follow suit, $60 per year just to play online is very close to being draconian.
4) Quality Launch Titles
You know what's worse than having an expensive console at launch? Launching a great console with no software support. The Wii U came on the scene without the number of quality games one would have expected from a Nintendo console. As successful as the Xbox 360 has been, Microsoft is not Nintendo: The company cannot afford spend its brand's capital draging gamers to a new console.
Ideally Microsoft will welcome new users with a good balance between hardcore titles and Kinect games for casual users, but quality is just as important as quantity. We don't want another Perfect Dark Zero fiasco where the hype was strong in the force, but the game did not deliver.