RSSWhy the Zune HD needs the Xbox 360
By Tim Conneally | Published September 15, 2009, 3:06 PM
We're standing on the cusp of a new chapter in video game history: the era of microgames, where titles $10 and under take on a starring role, and attach rates (that is, games sold per console) skyrocket.
The charge is being led by Apple with its iPhone and iPod Touch, two devices without gaming as their stated purpose, both of which have found unmatched success in the downloadable gaming industry. The other video game consoles have their own "app stores," where games can be downloaded directly to the system, but none have reached the heights that the iTunes App Store has...yet.
At the annual iPod refresh last week, Apple's Senior VP of Worldwide Marketing Phil Schiller said, "When you think about the companies that came before us... when you played those other systems, they seemed so cool, but now when you look at them, they don't stack up against the iPod Touch."
Schiller cited the fact that there are 21,178 gaming and entertainment titles available on the iPhone/iPod Touch platform while there are only 607 for Sony PSP and 3,680 for Nintendo DS.
Daunting numbers indeed. But the big money isn't in selling downloadable games, and Apple is the only competitor in this field without a related home video game console.
What does this have to do with the Zune, again?
It's a well-known fact that the explosive growth of Mac in the PC market is intrinsically related to the popularity of the iPod: As sales of the portable device increased, so too did sales of the "parent device." This halo effect has been observed since 2004, and Apple has managed to transfer it from the iPod over to the iPhone. As the iconic iPhone takes an increasing share of the mobile phone market, Macs have enjoyed a gradually climbing share of the PC market.
Pairing an iPod with Mac iTunes is a simple and streamlined method of organizing and acquiring music and video content. Similarly, syncing a Mac with an iPhone helps users simply organize contacts, calendars, and communications in addition to entertainment content. But when marketing the iPod Touch and iPhone as gaming devices, what benefit do users gain from pairing with the Mac, a platform traditionally bereft of games?
Not much.
Today, the Zune HD portable media player -- Microsoft's answer to the iPod Touch -- officially launched in retail; and for the first time, Microsoft has a chance at cracking the personal media player market wide open. In addition to the PC compatibility with Zune's desktop Software, the device is compatible out of the box with Xbox Live.
Though the integration plans currently only include sharing of high definition and streaming video and not gaming, Microsoft made sure to highlight the Zune's abilities as a gaming device today.
"Later this year, Zune plans to release...fun 3-D games such as 'Project Gotham Racing: Ferrari Edition,' 'Vans Sk8: Pool Service' and 'Audiosurf Tilt.' Games can be added to Zune HD via Zune Marketplace over the Wi-Fi connection or when connected to the Zune PC software."
Nintendo and Sony have portable devices which pair up with their related home consoles; but due to weak integration, this has not proven to be a significant selling point for either the handhelds or the consoles. Consequently there are only two major releases for Wii that feature DS integration, and PSP remote play is poorly supported at best.
Since Microsoft does not have a dedicated handheld video game system, and an increased amount of attention has been turned on the iPod Touch and iPhone's video gaming capabilities, the company is standing over a market ripe and ready for Zune/Xbox Live integrated gaming.
Were Microsoft to hitch the Zune wagon onto the star that is Xbox 360 (in August it still managed to outsell Sony's PlayStation 3 despite the PS3's 300% increase in sales), it would have an audience of more than 31 million interested users, creating an entirely different Halo effect.
The first thing my 20+ year old son said to me when I asked him what he thought of the Zune HD was that he would consider getting one ONLY if it had good integration with the Xbox 360. (His favorite game console) Otherwise, he'll stick with the iPod Touch. So perhaps hitching the Zune wagon to the Xbox 360 would be a good marketing move for Microsoft.
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|I wonder when they'll really take off with this Zune/Xbox integration thing... right now it just doesn't seem to be there...
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|Ah, I meant to add my 4th rebuttal, the most important one:
The iPod halo effect doesn't occur because integration between Macs and iPods is much better than Windows and iPods. iTunes performs worse on Windows but there is zero functional difference.
The halo effect took hold because people who previously would never consider Apple at all for anything realized they produced a quality, seamless product that worked brilliantly, and they became curious about seeing whether that was true with other products.
One can force an analogous situation on Xbox/Zune I suppose, but it would be very tenuous and not very believable. Are XBox owners really the type of people not to have previously considered MS products? Is the XBox experience so gamechanging that people are interested in MS products they hadn't considered before? Doesn't really make much sense.
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|The reason the Ipod took off is because apple offered it to Windows, it did terribly on the Apple platform. Apple was able to make it because they had little competition and there needed to be a new model.
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|And that success seems to really piss you off because I didn't say anything about why the iPod was successful nor does it have anything to do with the topic. The topic is: can the iPod halo effect work for the Zune. The premise presupposes that the iPod is a success. The question is: how does that success translate into additional growth for a different device.
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|Term:
"The reason the Ipod took off is because apple offered it to Windows,"
You:
"because I didn't say anything about why the iPod was successful nor does it have anything to do with the topic."
Which is funny because you basically said *the exact same thing* in different words regarding how the iPod became successful/got people to think about Macs.
You (in original post):
"people who previously would never consider Apple at all for anything"
Implication: They were Windows users. (They never considered Apple for anything)
Implication: It became popular because it worked on *their* platform. (they weren't already using a Mac)
So...you basically said it took off because Apple offered it to Windows. Which is exactly what term said.
So I guess you're both guilty of stating the obvious? ;)
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|I said nothing about WHY it was a success. IT WAS AND IS A SUCCESS. Patently obvious and irrelevant to the dicsussion. If you want to infer that I was suggestion some reason or another for that success, fine. However, what does that have to do with whether or not the Zune can become successful on the back of the XBox's success? Nothing whatsoever. But a bitter fanboy has to chime and say, "well, well, well... okay, I have to concede the iPod is a success, but, but, but... it's only because of Windows compatibility.... so, so, so it's really Microsoft's success!"
Um, okay. What does that have to do with anything I said or anything this article is saying?
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|"However, what does that have to do with whether or not the Zune can become successful on the back of the XBox's success? "
Everything? How can *anyone* talk about a comparison intelligently unless they know what they are talking about?
To guess at whether or not the Zune could gain success in the same way the iPod did, one *must* at least have some idea of how the iPod became successful. Yes?
We cannot simply say, "No, it can't happen the same way" without having any clue as to how it happened int he first place....can we?
Personally? I couldn't care less. I have no preference because I don't own either of them, nor will I in any foreseeable future. But just saying "it can't happen for MSFT the same way" without discussing how it happened for Apple in the first place seems a tad ludicrous.
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|Um, no. The thesis of this article is that the success of the XBox and its userbase will fuel the Zune as the iPods success and large userbase has fueled Mac growth. Again, the thesis presumes iPod success. It doesn't question it, it doesn't explore, it doesn't need to understand it. THe idea is that it's success led to other success.
Not sure why you aren't getting it: just because iPods and Zunes are in the same space, they aren't corollating in this analogy. If this was on the SATs, it would be iPod:Mac::Xbox:Zune. Not iPod:Zune::Mac:XBox.
Getting it yet?
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|(My comments are relating to the history of why the Ipod is king and how it was able to get there.)
Had MS had integration direct with the xbox360 and released it with all the updates that the 3rd firmware update gave it could have been a different game. So with the Zune HD they are trying what they already had but with all the current features that the previous 3 offered with some enhancements.
Bitter? Try again, its a fact. If ipod stayed firewire and mac only it would have been a failure.
Another fact when Ipod came out there was not much of a market. The current lineup was clumsy and the software to purchase said songs was little to non-existent. Add in a device that could ONLY use Itunes initially and songs purchased from that service could only be used on an ipod you can see that people had little to no choice but to stick with their ipod.
It wasn't until recently that has changed but still you have to pay money to have the drm removed which a lot of people have extensive collections and don't want to.
Because of the recent changes in the drm model and MS offering better integration with their other products it makes sense that people would consider the Zune if they own an xbox360 and it integrates with everything they do.
Their success pisses me off? I own an ipod so wrong again.
Zune is limited by its USA only and works only for Windows. Also add in that since Ipod has such a huge market there is little accessories and add-ons for Zune.
And no it was not a success when it first started out, it came out in 2001
it did not start becoming a success until 2005.
That is 4 years
No idea how you got its Microsoft's success out of that...
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|I don't know why you think you are saying anything relevant by giving a seven year history lesson. Is their an iPod Halo Effect for the Zune? No. That's my point. Seven years of success for Apple doesn't change that point.
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|A penny for your thoughts, but:
1. We know quite specifically that Microsoft hasn't even inched very much closer to this integration that Microsoft supporters have been screaming would come any day now for almost four years. Zune gains movies that's it. XBLA was mostly dropped for Zune (with the abandonment of the rest of the line and the announcement that current games are using a different in-house-only API). Game development for the (old) Zune was different than XBox Arcade games because of the squircle. Current Zune HD development is different from that in supporting multitouch. Where does small-device/multitouch meetup with XBox Arcade games? And the fact that WM development remains on its own track? Every Zune announcement Microsoft claims more integration and yet I barely see it as anymore integrated than it was on day one.
2. What is the halo effect potential of a 30 million user-sized market? Actually, XBox IS international, and the Zune HD is NOT so... what potential does very, very limited connectivity with 20 million other devices really mean? There are already 45 million iPhones/iPod Touches on the market. If every XBox owner was forced to purchase a Zune HD tomorrow, they would still be two years behind the iPhone platform.
3. If the XBox inherits features from the Zune and vice versa, what is the benefit in pairing them? Very little. Remote or augmented controller, that's it. Apple's Remote app and other alternatives are cool; DS integration with Wii is a cute toy... But I don't see either of them actually being the deciding factor in theory.
I'm sure Microsoft is very much thinking what you are. Unfortunately, I think both of you are overestimating your own enthusiasm for market realities.
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|Well they both use XNA for development - so there is some integration there, its rumored that you will be able to watch it on your xbox360 and if you are about to leave or whatever you can transfer it to the zune and continue where you left off. Might not be much but its growing. Plus your xbox live id works with the Zune service and points are transferrable between the two.
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|Everything you mentioned, excepting when pure speculation or wrong, has been there for two years. Are you saying that 25+ million XBox users got Microsoft over the 2 million hump and Zune would have fared much without the halo effect?
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|Poor integration is a result of the lack of imagination of the developers too... Think if you had a game like Empire: Total War, and you just started a game but has to go of, for the ones who played the game, it's a fact the the first turns are almost only management and strategies, so what about you managing your empire from a "tatical screen" on zune HD and then, when the game go into some of that High Detailed battles, or you use autoresolve or pause and wait until you get home to play it on XBox...
Integration is not just a question to microsoft, but to the developers too...
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|It'll be a sad, sad day if gaming is reduced to only this.
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|I doubt that will ever happen. As much as users LIKE the idea of watching videos on a portable device it's not exactly worked thus far. Gaming has a better chance. Considering games on a portable device thats NOT a game system has been fairly crappy up til the iPod Touch debuted. hardcore gamers will still flock to their Consoles/PCs for years to come. On the other hand casual gamers may prefer having a few games on their Touch, iPhone, Blackberry, Zune, etc.. as something to pass the time. It's just an expansion really. Will it fair better than portable video has thus far? We'll see...
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|More viruses for macs? Cool. :P
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