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  (Source: Paramount Pictures)
Many of the media center features are only unlocked once you purchase a $60 USD yearly membership

Remember that slick DVR system to allow the recording of gametime videos, the voice-controlled channel guide (OneGuide TV), and the SmartMatch game match pairing service for the upcoming Xbox One?  Well in turns out Microsoft Corp. (MSFT) is not intending those features for everyone.

I. Pay or Get Out

In order to "unlock" them, you have to pay an extra $60 USD a year for an Xbox Live "Gold" membership.  Xbox Live currently comes in two flavors -- "Free", which has no charges, and "Gold" which has an annual fee, but offers some unique perks (e.g. the free download of "Crackdown" currently available for Xbox 360 "Gold" level subscribers).  The Xbox 360 did set a somewhat similar precedent; it only offers access to the Internet Explorer (IE) browser to "Gold" customers and only allows "Gold" level customers to have access to their Netflix, Inc. (NFLX) account via their console [source].

Microsoft currently has 48 million Xbox Live users.  Of those an estimated 50 percent are "Gold" subscribers (Microsoft doesn't release statistics on the number of "Gold" subscriptions).  For them this won't be an impedement.

Xbox Live
Here's a list of some of the features Microsoft is placing behind a "Gold" subscription paywall.

But for the "Free" members or those who don't use the Xbox Live network at all -- which account for an estimated 24 million + Xbox Live "Free" users, plus the estimated 30 million some Xbox users [source] who don't subscribe to either service, your console will lose some of its key selling points.

Microsoft's console, which launches in November, is already priced at $100 USD more than Sony Corp.'s (TYO:6758) PlayStation 4.  
Xbox One
The Xbox One

II. Xbox -- Controversy in a Black Box

Other controversies are also still surround the console.  Its "always on" 1080p camera, along with Microsoft's allegedly voluntary data sharing agreements with the U.S. federal government have some fearing the new console will act as a "Big Brother" device, watching citizens' living rooms at all hours.  Microsoft has countered these claims saying it will include "robust" privacy protections with the Xbox One, however it stopped short of saying it wouldn't share video of you with the government.

Kinect 1080p
Microsoft's always-on camera feeds may be shared with the U.S. gov't.

Another controversy is over the cloud gaming features of the Xbox One.  The console has the ability to offload computations to the cloud, which Microsoft claims will make the console five times as fast, allowing for much better games.  Experts like John Carmack of id Software have called shenanigans on that claim, saying the Xbox One was on par with the PS4, even with cloud computing considered.  But what cloud offloading will certainly do is offer gamemakers an easy route to make their games unplayable offline.  One Microsoft executive was quoted as saying that he "hoped" gamemakers would use cloud computing to make their games unplayable offline.

PS4 devs in theory could also use cloud computing, and even potentially make their games unplayable offline.  However, it would be much harder to do so as Sony does not provide them with pre-packaged APIs for this purpose, meaning they'd have to write their whole offloading backend themselves.

Originally Microsoft also wanted to institute daily digital rights management (DRM) checks, which would effectively brick your console if it wasn't connected to the internet.  Former Xbox chief Don Mattrick (now CEO of Zynga Inc. (ZNGA)) fed the flames when he said that users with less than 100-percent reliable internet didn't deserve an Xbox One and should settle for an Xbox 360.  Facing a firestorm of criticism, Microsoft begrudgingly backed down, but still is standing firm on the controversial cloud computing drive.

In the good news column Microsoft did confirm that the Xbox One's latest hardware build received a GPU speed bump, which put it virtually neck-and-neck with the PS4's GPU.  That would explain where John Carmack's commentary that the consoles were pretty much identical in computing power came from.

Source: Microsoft



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RE: It figures...
By Reclaimer77 on 8/8/2013 5:52:14 PM , Rating: 2
Yeah but it was due to a criminal hack.

That's like blaming the power company for your losing electricity when terrorist fly a plane into the nuclear plant.


RE: It figures...
By retrospooty on 8/8/2013 6:22:49 PM , Rating: 1
I just dont get the blindly defending MS with the ridiculous crap they have been pulling with the XBO.

I get it if someone doesn't care about those things and wants to buy it, but to act like we are all stupid, cheap or paranoid for not liking the the huge laundry list of limitations, requirements and intrusions is just nutz... wtf?


RE: It figures...
By Reclaimer77 on 8/8/2013 8:10:04 PM , Rating: 2
I don't get it either. Here is a company, straight up, saying they want to screw you and - possibly - compromise your privacy. And people are lining up with money in hand lol.

I just don't get what's going on at Microsoft over the last 5 years or so. But someone needs to hit the eject button on this movie, it's painful to watch.


RE: It figures...
By retrospooty on 8/8/2013 8:45:52 PM , Rating: 2
If it were just pointless requirements, and limitations, it would be ok... But pointless requirements, limitations,AND intrusions? That is where I draw the line. LOL


RE: It figures...
By ianweck on 8/12/2013 3:35:57 PM , Rating: 3
I just don't get what's going on in Washington D.C. over the last 5 years or so. But someone needs to hit the eject button on this movie, it's painful to watch.


RE: It figures...
By Mint on 8/9/2013 12:24:09 AM , Rating: 2
Nuclear plants aren't expected to be online 100% of the time.

Sony, however, is expected to have sufficient security about personal info. ALL tech companies have that expectation.

That said, I agree he's beating a dead horse with little relevance for future action. If we're going to forgive MS for RROD, then we should forgive Sony for their moment of weakness.


RE: It figures...
By Reclaimer77 on 8/9/2013 9:05:16 AM , Rating: 3
Oh man I'm sorry for not using a perfect Mint-approved analogy. Please don't hit me!

All I'm saying is the network didn't "go down". It was TAKEN down, via a criminal act. And I believe we should blame the criminals first, I'm just that kind of guy.

If you don't think the lock on my door is good enough, that doesn't give you the right to kick my door in and steal my belongings.

(ps, that was probably another imperfect analogy, sorry!)


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