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Xbox Going Strong
Microsoft’s entry into the game arena has proved to be exciting and successful, says Robbie Bach, Senior Vice-President and CXO of Microsoft Games, the Chief developer of the Xbox. Robbie’s job has been to manage the entire Xbox effort. He is a veteran in software development, joining Microsoft in 1988.
 “Microsoft is now focusing on empowering users through great software on an anytime-anyplace- and on-any-device basis,” Bach said. “This has made the Xbox and video games possible from Microsoft. This is a big shift from the fundamental way of doing business, in terms of focus and direction.”
“By re-inventing Microsoft, we have gone from the PC to the network to the new world of the Internet, which will make using these devices and systems easier. This will be connected to the Internet, and the complexity of this new world is Microsoft’s challenge,” he continued. “We are making changes that are hidden from users to provide a global set of services at home, at work, and on the road.”
Bach talked about the “Digital Business Revolution that has occurred. I worked for Morgan Stanley back in 1985 doing spreadsheets and I did not have a PC. The process of producing those documents was heavy and time-consuming … it’s amazing how far we’ve come.”
He next took his audience on a tour which showed a change in how people think about entertainment. “Music has become a digitally-produced experience. Video games are a digital medium, and Microsoft thinks it can advance this medium successfully. Video games are a $10 billion/year industry, larger than the movie box office annually … 50% of homes have video games, which matches how many homes have one or more PC’s.”
The Xbox strategy is all about producing great games. “We are partnering with people to design games from around the world. Flextronics is a company that produces the box. Suppliers from every part of the world have shared in the development. Partners are key. Innovation is important. We have spent quality time to build Xbox brand. A half billion dollars has been spent in marketing. The Xbox awareness factor today in the U.S. is 96%.”
Bach told how the Xbox was launched on November 15 and has sold 1.6 million units in the U.S. alone, with an average of 2 games per box. Sony is the industry leader with their PlayStation I, with an average of 9 games per station. There are 40 games available now for Xbox, with 150 games set for release by the 2002 Christmas holiday, with subjects like racing, fighting, skating, and snowboarding. Developing software for the games is “much like working with a cross-section of Hollywood and Silicon Valley, like a movie environment. Technical people have to make the games come alive on Xbox,” Robbie observed.
The audience saw a video of a sample of Xbox games. It was agreed the representation was very realistic. The next launch for the product will be in Japan on February 22, with all games completely different. Xbox comes to Europe on March 14. One of the features available in the future will be offering play across the Internet. Using a basketball example, a person with four other people may form a team, be in a league, and compete with others. This will take console game experience. It will also take time to develop and will require a broadband connection. The key to this concept is communication and interaction.
Bach concluded that “it’s the Microsoft difference of leadership and vision that has vaulted the company so rapidly into this new arena. We have incredible software people. We have taken a long-term approach to this development. We have patient capital and a results-oriented, self-critical culture. Video games take a long time to develop as a business … up to five years for the big results.”
In the Q & A session, Bach was asked: ”Do people over 40 play video games?“
A: This is a challenge for the developers: how to enable a larger audience to play. Now focusing on 15-25 year olds but always trying to expand that.
Q: Violence? How to handle?
A: Every game has to be rated. You’ll see E, T(een) and M(ature). We enable parental control on the box, so kids can play only what their parents want them to. Xbox also plays DVD movies, where a rating system applies.
Q: Are their educational titles?
A: We have stayed away from that area initially. We are working to establish ourselves with the ”hard-core set of gamers.” In the interest of expanding, you’ll see some “edutainment.”
Q: Susan Harrison wanted to know if Xbox is planning a Mall Shopping video game.
A: PC Video games do have a high usage by women … nearly 50% of the total users. (But, if shopping is reduced to a video game, Susan, you won’t be able to drop by and get a hug from Dick Brown!)
Thanks to Rourke O’Brien for his introduction. For Robbie’s presentation, he received a certificate purchasing 600 pounds of food for needy families through Rotary Food Harvest.
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