Xbox CEO Slams Sony’s Online Offering

Ballmer knocks PS3 strategy.

Posted by Staff
Xbox CEO Slams Sony’s Online Offering
Microsoft big cheese Steve Ballmer has criticised Sony’s plans for online PS3 gaming. The Xbox CEO, speaking to Investor's Business Daily late last week, made it clear that he thought Microsoft would beat Sony this generation and that, "Sony has no strategy for an online service."

"We're off to a very good start," he told Investor's Business Daily last week, going on to repeat Peter Moore's claim that Xbox 360 will ship between 4.5 and 5.5 million units by the end of June 2006.
However, Ballmer remained realistic about the opportunities for Xbox 360 in the difficult-to-crack Japanese market. Commenting on the console’s disappointing start in Japan, he said, "I'm not sure we're going to beat Sony in Japan this generation. Maybe."

Xbox 360 launched in Japan on December 10 but has been eclipsed by sales of all the other consoles available, especially the Kiddy-Crack Wonder Toy Nintendo DS, which has seen record sales over the past month, with many stores selling out.

Ballmer remained bullish when discussing the launch of the PS3, quipping that, "Nobody knows when PlayStation 3 is going to come. The rumours are it will come out in the spring, but only in Japan. And nobody knows what PlayStation 3 is going to cost. PlayStation 3 has a [Blu-ray Disc] drive built in, so who knows what the heck they're going to charge for the thing, because those are very expensive drives. Who the heck knows what the games are going to look like for PlayStation 3?"

And then he goes on to deliver his killer blow: "Sony has no strategy for an online service." Take that, Sony!

SPOnG would like to remain somewhat more impartial on this issue, as we really have to remember that the installed base worldwide of PS2 users, even the installed base of PS2 users playing online PS2 games, far outstrips the installed base of Xbox users. Microsoft have a lot of catching up to do this generation, and it would seem that their superb online offering with Xbox Live is the key element in their global gaming domination strategy.
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Comments

fluffstardx 16 Jan 2006 10:28
1/14
It's true what he says, though, and many people not drawn in by Sony would agree. Cost is a scary issue, what with figures like $500 being bandied around and some even saying $750.

I personally have lost all interest in the system, and a good price could have drawn me back in. Having had a taste of Live, though, a good online infrastructure would be nice; even Ninty seem to have bitten on the subject. To find the system looking overpriced and devoid of online structure, the small inkling of interest I had has died totally. It would now take the total death of its rivals to draw me in.
Viclo 16 Jan 2006 10:42
2/14
Quite honestly you can attempt to twist this story any way you want, but any way you look at it no one is even close to touching Xbox Live. Sure Sony has more people online, but that includes 56k users (worthless), and a down right horrible infrastructure that almost makes me cry. Xbox live has been very well established, and it's been made clear that if you want to play online you'll have to pick up an Xbox.

Hell, this article is just pathetic...Who are you trying to convince?
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config 16 Jan 2006 10:46
3/14
Ah, and Xbox fanboy. Welcome, my friend.
OptimusP 16 Jan 2006 10:58
4/14
The point maybe is... Microsoft screwed up their chance of getting so much ahead Sony can't catch up... and MS knows it so now they're like little children saying their daddy is stronger then yours, nanananaaaanaaaa...
Besides, Nintendo just has to launch Mario Kart Revolution online and Xbox Live pales in comaparison... yes, by a Mario Kart game... it will! Maybe... *plays more Mario Kart DS*
realvictory 16 Jan 2006 11:24
5/14
Yeah, I totally agree. What he said is true. The XBox 360 has done reasonably well, however, you have to take into consideration that two more next generation consoles are still to be released. They could still overtake the XBox 360. If the XBox 360 does well, good for them. Otherwise, it's their own fault anyway, so I won't feel sorry for them.
tyrion 16 Jan 2006 13:20
6/14
I do like the way Steve "chair chucker" Ballmer says that nobody knows anything about the PS3 in one breath and then turns around and says Sony has no on-line strategy for the PS3 with the next. That's uncertainty and doubt covered, lets get a bit of fear in there, Steve. Oh, sorry, fear is covered by the price issue. Yup, bog standard MS-FUD.

The thing is, there is nothing stopping Sony doing what they have done with the PSP and providing a central place for news, firmware updates (you know they will), bonus content (a-la Wipeout Pure) and the rest, but still have the publishers run their own servers for on-line play. Just because they don't want to sink billions of dollars into a service like Live, doesn't mean they don't have a strategy.

In fact, a distributed service may be just as simple to use as Live from the end user's perspective. Each publisher updates the central site with the services they want to provide, the PS3 amalgamates those services for the user and presents them as one integrated offering. You download your trailers, demos and arcade games from the publisher's servers, but your PS3 finds out about them from the central station service.

Sony would run the buddy list/messengering system on its servers, but providing the gaming servers would be down to the publishers. They could even centralise the billing to make things easy on the users.

Not impossible, doesn't require huge investments in hardware and bandwidth by a central system and has the flexibility and ease of use that people want from an on-line service.

If anything like the above is to be put in place, I'd say the latest we would hear about it is at the Games Developers Conference (GDC) in San-Jose, March 20th-24th, unless the PS3 isn't bound for a Spring launch, then E3 would be the place.
thane_jaw 16 Jan 2006 13:58
7/14
The only real problem i can see with the strategy outlined by tyrion, is the question whether publishers would be willing to host servers and provide extra content for no return? (given sony's previous commitment to free online gaming). Given the diminishing returns of games (unlike films where you can charge £12 for the rerelease, games prices plummet like a big bag of elephant dung within 2 months of release) I don't understand the incentive. If they turn round and start charging they need to provide an equivalent service to live. And they're going to be playing catch up very hard.

I'm afraid Xbox live is the complete package. It's really well though out and implemented. I think the advantages of having a centralised system (buddy list that works (take that steam), everything centrally updatable (live goes down once in a while for a day, we're warned in advance, and then it comes back up again and everythings hunkydory), one single payment to make a month/year, cohesive online experience) far outweighs a non-centralised system. If anything went wrong with a non-centralised system, there would be a lot of buck passing in my opinion and issues would take ages to address.

Whilst tyrion addresed these points, I can't see sony providing anything as cohesive as what he suggests, let alone coming close to live in terms of functionality, ease of use and reliability. Certainly MS are being slightly pre-emptive is slating sony's online system, but i'd feel pretty confident about having the best online functionality if i were an MS CEO.
crs117 16 Jan 2006 16:06
8/14
I am not gonna muck words but Steve Balmer is correct. There is no way a non-centralized online system would ever be able to touch the functionality of xbox live. For those dismissing xbox live, obviously you have not seen it in action for yourselves on a 360. It, to me, is a more important feature then even games that have currently been released up to this point. It has provided a means to connect with and game with friends (real life and virtual) around the country completely effortlessly and to be able to stay in contact regardless of which game either of you are playing.

Say what you want about the current vapor ware that is the ps3, but I got what i want and need in next gen graphics gaming with the x360. I will also purchase a revolution, but I doubt even nintendo will be able to touch the fluidity of xbox live.

Christian
DoctorDee 16 Jan 2006 17:22
9/14
crs117 wrote:
It has provided a means to connect with and game with friends (real life and virtual) around the country completely effortlessly and to be able to stay in contact regardless of which game either of you are playing.

Completely effortlessly my arse. OK, it may be if you are an Xbox gamer coming to 360 knowing both your GamerTag and your password. But if, like me, you didn't have a GamerTag, but you WERE registered with Micrsoft Passport and had forgot that you were, trying to register with Live gets you stuck in a loop that you can only get out of by re-booting your Xbox 360.

Pretty shoddy for an otherwise exemplary on-line system.
LUPOS 16 Jan 2006 18:57
10/14
DoctorDee wrote:
trying to register with Live gets you stuck in a loop that you can only get out of by re-booting your Xbox 360.


bah... your lack of techinical prowess sadness me doc. i actually set up my gf's gamer tag yesterday... and found out... suprise surprise... she was part of the passport network already... so i says "hun, you a memeber of xbox.com?" "i dunno." "coudl you check?" 30sec..... "yup!" "whats your password?" enters password... *bing* done.

no loop , no problemo... and that was with her havign forggotten her pass and gone through the retrevial process... admitedly after entering everythign a second time i was yearnign for a spare usb keyboard... but other wise it was very easy.
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crs117 16 Jan 2006 20:18
11/14
All I know is I have a passport because I am a MSDN Developer, and not for any other reason, but it was cake to set up my xbox live account with my passport. If you dont have a passport you can easily get one online before you try to get a live account and save yourself time and effort of typing with the pad (or finding a usb keyboard).

Anyway it would be quite sad to judge your whole xbox live experience based on registering because your forgot your password. I do not know a single other person that has any problem registering (save for the typing with the pad), and it is absolutely effortless to find and connect with friends.

Christian
DoctorDee 16 Jan 2006 20:36
12/14
LUPOS wrote:
bah... your lack of techinical prowess sadness me doc.


That's as maybe. But in this case, iyt was not my lack of technical prowess, but MS poor QA that caused the problem.

Both you and another user have told me how, under different circumstances, registering would have been easy. But, I wasn't under different circumstances. Under the circumstances I was in, I got the 360 into a loop, the only way our of which was to re-boot it. You can all go on about your different circumstances all you like... you can tell me that I should set up another Passport, using a different email address (that I don't want to use), you can say what you like. But in the circumstances I was in, the Xbox 360 got stuck. I can replicate it.

There can only be two reasons... either Microsoft don't give a s**t about people in that set of circumstances (unlikely)or they did not test for that set of circumstances.
LUPOS 17 Jan 2006 06:55
13/14
please to pardon any offense i ment only to amuse... im not doubting you got fenagled in soem weird looping circumnstance... and i do entirely agree that it should not happen... but the vast majority do not have this issue... does that excuse its existence? not at all... but there has yet to be released a flawaless program in ... atleast not since the good old punch card days. when it coems to things liek this there are levels of screw up im willign to accept... it just comes with the territory... perhaps its the years of pc gameing that have softened me... but when a console very very rarely has a little hickup... i hardly see fit to cry foul.

now they could have probably ironed out the particual issue... but the sad truth is that ms is banking heavily on their"first to the fight" strategy... and anythign that woudl delay that to sevearly is patachable... especially when it soemthign that deal direvtly with live.

anywho... i and most people have had no probs with live whatsoever. ive no doubt your prob was real, but it certainly isnt daming evidence of ms inedptiude.
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DoctorDee 17 Jan 2006 08:29
14/14
LUPOS wrote:
ive no doubt your prob was real, but it certainly isnt daming evidence of ms inedptiude.
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I am on the fence about that. Live is extremely impressive, and if Microsoft does overtake Sony this generation (something I doubt, but it COULD happen) Live will be 85% of the reason why.

Butt he fact that MS didn't QA script and test the scenario I ended up in was all the more jarring when compared to Live's otherwise silkiness. IMagine, I had just got the worlds hottest console, long before most other people in my country, and in the face of huge supply shortages. I had attached it to my 24" widescreen Dell monitor, and the picture quality was awesome. I had gone through getting it on line, and there were some issues with out firewall that needed to be resolved. Then Live registration seemed to be simple and painless. But due to my (rather special) cicumstances, I ended up in a loop I couldn't get out of. But the solution was SIMPLE, all MS needed to do was put a "restart registration" button on every page - that way they didn't need to envisage and test every scenario.

PS. Don't worry about offending me, I don't give a flying foot what people think of me.
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