Multiple channel gaming network Machinima has settled the charges pushed by the Federal Trade Commission (FTC) over allegations of unfair practices that resulted to deceiving customers through a paid video released to promote Microsoft's Xbox One.
The controversy arose when Machinima allegedly paid two YouTubers to create a video that promotes Xbox One games as a personal opinion, but was uncovered later on by the Federal Trade Commission that they were in fact paid by Machina to the tune of $15,000 and $30,000, respectively.
FTC also disclosed that according to the YouTubers, Machinima asked them to create a content which will showcase the Microsoft Xbox One in a very positive light but was instructed by the company to not disclose the compensation for it.
The Federal agency also commented that this practice is common but what separated it from the legally made promotions was the fact that it was put in a way to purposely deceive the public by projecting the notion that it was the YouTubers' personal opinion not Machinima's.
That being said, Machinima was required to publicly disclose their future relationships of the similar nature or any similar promotions in the future and was barred from paying their YouTube partners unless they do the transaction within the bounds of the FTC regulation.
At this point, the Federal Trade Commission already closed their investigation because of Microsoft's quick reaction on the issue and promised to take and ensure that proper disclosures will be made in the future, most especially the promotions that is leaning or will be leaning towards their Xbox One series and anything that is related to the console game device.
In related news, Microsoft is currently considering to extend the backward compatibility of their Xbox One the first Xbox released in 2001. According to Microsoft's Phil Spencer, what drove the backward compatibility up to the original Xbox was a question posted to him by a fan. Although he did not confirm that it will happen, the possibility for the team to look on the idea is a giant leap, considering that the console is 14 years old.
