Speculation on why Microsoft changed it's mind as I don't think it's because of gamers...

GrayGhost79

I was thinking to myself after I read the news... 

"Didn't they just have a conference with used game retailers?" 

 

... and of course that got me thinking. What if the reason they back peddled was due to places like Gamestop decided that since the PS4 and Wii U didn't effect how business is currently ran why would they cater to Microsofts Xbox One demands? Why bother carrying it at all? If they had to pay fees to sale a used game it becomes less profitable for them and less budget friendly for gamers. 

They are forced to buy games at an even lower price and sell them at an even higher price to make a profit. This pretty much kills the point of dealing with used games. Those games take up a lot of real estate and many eventually get sold for less than they paid for them. 

 

So why bother with the Xbox One at all if it is contradictory to their main source of revenue? 

 

I could see places like Gamestop and others that Microsoft will be relying on to sell the console simply saying "Here's our counter offer... we won't carry the system or games". Retailers don't generally make much on a console sell if they make anything at all, some even take a loss. Where the money comes in is through games and accessories. There is a reason most companies similar to Gamestop have gone out of business. There is little money to be made. The used games have become their bread and butter. It's not like the Xbox One was overly popular after E3 anyways lol. 

 

If you could walk into a store and pick up a Wii U and PS4 as well as games and accessories but had to go to Microsofts website to order an Xbox One and accessories as well as games then Microsoft would lose a great deal of revenue due to the other systems convenience. 

 

In the end Microsoft managed to alienate gamers, indie developers (Some with very big names. Imagine if CU was suddenly coming to console, which one do you think they would pick since they are looking to self publish?), and the very retailers they are relying on to sale the system and accessories. 

 

Those are my thoughts on the matter, what are yours? 

 

Mikeha

Microsoft changed there plan simply because they saw it would make them more money. The way people spoke out showed just how strong the Xbox brand really is. Special thanks to Sony for hearding all the sheep.

Kaijin2k3

They reversed because they were severely lagging behind in preorders. It's really the only thing that drives company to make a completely drastic change like this; when they can no longer deny that it won't be anywhere near as profitable as they expected it to be.

Though yeah, I'm sure Gamestop and Amazon had a "small" hand in that happening.

Beatnik59

I think the retailers had something to do with it.

I think this new console gen--more than any other console gen previous to this--is under a lot of pressure to sell itself to a recalcitrant public.  And they are going to need every ally--from the retailers, to the gaming press, to the fans--to make this launch come off well.

The economy ain't stellar.  Most of the console's functionality is already done by the current generation, and the new functionality (the Kinect features in particular) has got to make its case.  It's like when the iPod dumped "the wheel" in favor of touch screen. 

Of course, Apple saw the iPod as a gateway to the iPhone, and conceived of it as an app deck more than an MP3 player.  But for those who wanted--even needed--the iPod to work in the car, or at the gym, the touch screen actually made the iPod Touch lose functionality over the previous model.

So what did they do?  Apple launched the iPod Classic.  Believe it or not, this inferior machine, "obsolete" wheel and all,  sells for more than the more advanced iPod Touch.  Because it simply does what the consumer wants it to do.