JamieG Analysis

The Xbox has sold well this Christmas. I good sign on this is the Xbox-Live servers straining under the load.

Also this christmas, Xbox and PS3 both began to support DivX. Xbox being the better and more compatible version. (Sony can not do a thing right with the PS3)

I also got my hands on both consoles to have a look at the DivX functionality. I personally like PS3 better, and especially how it has a built in browser that works quite well for a TV experience. But really they are very similar.

With the support of DivX, as what appears to be happening, and what I have always suggested, the Consoles will take of more then ever.

I know this as, when I was over at a friends place, a guy who is a general consumer, has a computer to surf the net, read email, and like I always said, everyone is doing this, he is apparaently also downloading torrents. He was showing how great it is as he can turn on his Xbox and watch the video on his projector system as easy as flick of the remote control. He was VERY happy. So much so, he wanted to show it off to me.

This is the formula for massive growth in console sales.

I persoinally am not that happy with Xbox as it makes you purchase a new computer and an expensive version of windows to be able to also watch TV. And its not Blu-Disk compatible. (Again I must mention, HD-DVD has lost. It has 94% of the Australian Market. And for good reasons. Come on U.S. smell the coffie.)

The Xbox360 is becmomming a very good all round media device. Best Games, well designed, well packaged (Ie, comes with media centre remote control). All you need to make it a great digital media hub out of the box.

Microsoft know this. They simply want as many of these boxes in as many homes as possible. And the reason they want this is because.. Its all about the Games. They appear to have given up bending to the will of the incumbent content gatekeepers and make it difficult to watch Torrent content. Make it easy, sell Xboxes. Saturate the market. Be the dominent gamer platform.

Have people started to notice how all the new games have far less single player time. Less then a day to finish Halo3. Same with Call of Duty4. That is not much entertainment for the price of a game. The point being here is that the game is about online play. (That’s what they say) But I believe its about having to play $10 per month to USE the game online.

This is the NEW fronteer of making money with digital media. DRM does not work with Audio (As the blogesphere and the current incumbents have established) and as such its not going to work with Video either.

So, if your a big media company looking at the next big proffitable trend. One you CAN CONTROL. It is online gaming. Services where a membership IS REQUIRED, and you cannot get around it. A business where DRM “DOES WORK”.