Microsoft Studios Exec Cautions Valve on Launching Hardware

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J Tyran

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Foolproof said:
J Tyran said:
Foolproof said:
J Tyran said:
Foolproof said:
try to look up how much of the market in terms of console sales Gamestop actually represent.
Whatever their chunk of the market actually is the fact remains that its dwindling, fast.
For games, yes, for consoles, no. THe fact remains that people are not buying their consoles online, they buy them from brick and mortar stores.
I am not trying to call you out on this, I am genuinely interested in finding out more but can you provide sources. Sources for more than one Country in particular. Because I had to really wonder why people would choose to buy consoles from game specialist retailers at all, never mind the online Vs brick and mortar debate. The deals they offer are generally the worst, the prices are consistently higher and they dress up crappy bundle deals by including rubbish and cheap 3rd party accessories with the games noone really wants. Other retailers, whether its online or brick and mortar have far better deals far more frequently. It is pretty bad when I can walk into a supermarket, buy some eggs and some bread and grab an Xbox or a PS3 for less money than in Gamestation or Game.
Unfortunately, I read the article I got this from a year ago, and didn't bookmark it - I'm afraid I cannot find it presently.

As for the why, thought, one major reason is trade in deals, store credit and the like. Gamers are more likely to buy a new console if they can trade in their old one to get it signifigantly cheaper. Another is advertising of the deals themselves. A third reason is a much more friendly and focused attitude - there is a lot of personalised help in finding the right console for you in specialised games stores, that simply is not there online (unless you like immediately getting swamped with people talking about the PC master race), or in Walmart.
I believe you, your point matches consumer behavior. Most consumers are useless and need their hands holding. Instead of taking their time and checking out the available deals they prefer to go into a store and let someone talk them into buying the products that are over priced.

Here is a quick example. Same console a basic low end PS3, the cheapest one yet check out the price difference:-

Game, £184.99 [http://www.game.co.uk/en/playstation-3-12gb-slim-186884?categoryIdentifier=10468]

Amazon, £149.99 [http://www.amazon.co.uk/Sony-PlayStation-12GB-Super-Console/dp/B009DL2TBK/ref=br_lf_m_1000675123_1_1_ttl?ie=UTF8&m=A3P5ROKL5A1OLE&s=videogames&pf_rd_p=363911507&pf_rd_s=center-3&pf_rd_t=1401&pf_rd_i=1000675123&pf_rd_m=A3P5ROKL5A1OLE&pf_rd_r=02WK2KY2ZZFJMSTX12KP]

For Game the online price is usually the same as the online price. The £35 price difference is pretty significant, that's enough to buy a game or something. Why anyone would buy from Game when other retailers are cheaper? I answered it earlier, consumers are useless.
 

Vigormortis

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Foolproof said:
Azo Galvat said:
If anyone can break into the console market and make it work, it's Valve.
Please tell me which retailer will distribute and sell a digital only hardware.
First, you're making the massive assumption that the Steam Box will be digital-download only. Which, based on what Newell said in the Verge interview, is way off base.

Second, Gamestop, Bestbuy, GAME, and several other retailers already sell Steam Wallet cards at cost. So, even if the Steam Box was digital only, it's not a stretch to foresee these same retailers selling Valve hardware. (besides, you'll still likely be able to use disc media on the Steam Box given it's not a closed system)

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Ridiculous, over-reactions from BOTH sides of this argument aside, what exactly was the point of Harrison making this "precautionary speech" in the public space? It certainly wasn't out of "concern" for Valve's well-being. And, it certainly wasn't to offer a helping hand.

Most likely, it was a PR statement used to drum up arguments and controversy (apparent in this thread). Of which was likely used to veil a slight "threat" on MS's part.

Something akin to, "Don't make a console or things will get rough for you. *wink* *wink*"

Regardless, I'm anxious to see this "Steam Box". The idea of a unified hardware environment for gaming and an open software environment sounds rather exciting to me. Especially if they go the "modular computer" route as seen in the Xi3 machines.
 

RedDeadFred

Illusions, Michael!
May 13, 2009
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ROFL at everyone going: "ooooo Microsoft is scared." Yes the gigantic multi-billion dollar company is scared of the much smaller company that only has it's fingers in on part of media at the moment. I hope they can compete because competition is always a good thing for the customers but I kind of see this crashing and burning with only huge Valve fans picking it up. Never know though. They could surprise me.
 

Zen Toombs

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Saulkar said:
Timothy Chang said:
However, he hesitated to use Steam as a benchmark of success. "Xbox Live as a foundation, the reach we have and the experience we deliver is a great place to build on."
I am not quite sure I understand this statement. It seems to innitially imply that he wants to use an example of success but at the same time seems to endorse XBox Live as a place to build on... for... the... Steam Box?! Or he is implying that its foundation was what allowed them (Microsoft and its second console) to succeed in the current market?

I am completely lost, someone is going to have to break it down for this dumbass (me).
You're fine. If this hasn't been addressed, he means "OMGs, Steam ain't no big thang. We totes better!"

I too had that sentence catch my eye, for reasons that began with confusion and ended with fits of laughter.
 

Zen Toombs

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Foolproof said:
Isalan said:
Four words. Games. For. Windows. Live. Once you sort out that syphilitic tumour upon the face of PC gaming, then you can hand out advice, Microsoft.
Do you know what an Ad Hominem is?
...I'm sure Isalan does.

As you implied, just because Microsoft has shown several instances of dismal ideas and actions does not mean that their advice will be bead.

However, as Isalan implied, their several instances of dismal failure means that their advice should be taken with a grain (or heap) of salt.

 

CpT_x_Killsteal

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Well as long as they don't have overpriced DLC and don't want me to pay $100 for online services filled with crappy advertisements then I'm in.
 

Chaos Marine

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He considers X-Box Live to be a bigger success than Steam? Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha *Deep breathe* ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha!

I feel dizzy now.
 

Chaos Marine

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the.chad said:
Still don't understand the gaming hate for Windows 8.

Doesn't stop anyone from installing their own programs ie. Steam and every other game in the world.

Been using it for the past few months and have only browsed the app store to see what was in it. Definitely not killing my Windows 8 or gaming experience...

Steam is still my one stop shop for games and good bargains :)


Best of luck to Valve though, the more the merrier!
It's not that, that most people don't like it for. Well, the App styled interface is supposed to be balls annoying and my own mom who's been using computers longer than I have despises it with a passion for that reason alone. What people don't like about it stems from it heralding a direction from Microsoft in which they turn into Apple with their walled environment that pretty much removes one of the better things about Windows. Just about anything will fucking run on the thing and run well at that.
 

ungothicdove

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Well if there's one thing I know, it's that Valve is often rushing into things without much planning or preparation. I had barely beat HL2:E2 before HL3 was being shoved down my throat.
 

J Tyran

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Dec 15, 2011
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Foolproof said:
J Tyran said:
Foolproof said:
J Tyran said:
Foolproof said:
J Tyran said:
Foolproof said:
try to look up how much of the market in terms of console sales Gamestop actually represent.
Whatever their chunk of the market actually is the fact remains that its dwindling, fast.
For games, yes, for consoles, no. THe fact remains that people are not buying their consoles online, they buy them from brick and mortar stores.
I am not trying to call you out on this, I am genuinely interested in finding out more but can you provide sources. Sources for more than one Country in particular. Because I had to really wonder why people would choose to buy consoles from game specialist retailers at all, never mind the online Vs brick and mortar debate. The deals they offer are generally the worst, the prices are consistently higher and they dress up crappy bundle deals by including rubbish and cheap 3rd party accessories with the games noone really wants. Other retailers, whether its online or brick and mortar have far better deals far more frequently. It is pretty bad when I can walk into a supermarket, buy some eggs and some bread and grab an Xbox or a PS3 for less money than in Gamestation or Game.
Unfortunately, I read the article I got this from a year ago, and didn't bookmark it - I'm afraid I cannot find it presently.

As for the why, thought, one major reason is trade in deals, store credit and the like. Gamers are more likely to buy a new console if they can trade in their old one to get it signifigantly cheaper. Another is advertising of the deals themselves. A third reason is a much more friendly and focused attitude - there is a lot of personalised help in finding the right console for you in specialised games stores, that simply is not there online (unless you like immediately getting swamped with people talking about the PC master race), or in Walmart.
I believe you, your point matches consumer behavior. Most consumers are useless and need their hands holding. Instead of taking their time and checking out the available deals they prefer to go into a store and let someone talk them into buying the products that are over priced.

Here is a quick example. Same console a basic low end PS3, the cheapest one yet check out the price difference:-

Game, £184.99 [http://www.game.co.uk/en/playstation-3-12gb-slim-186884?categoryIdentifier=10468]

Amazon, £149.99 [http://www.amazon.co.uk/Sony-PlayStation-12GB-Super-Console/dp/B009DL2TBK/ref=br_lf_m_1000675123_1_1_ttl?ie=UTF8&m=A3P5ROKL5A1OLE&s=videogames&pf_rd_p=363911507&pf_rd_s=center-3&pf_rd_t=1401&pf_rd_i=1000675123&pf_rd_m=A3P5ROKL5A1OLE&pf_rd_r=02WK2KY2ZZFJMSTX12KP]

For Game the online price is usually the same as the online price. The £35 price difference is pretty significant, that's enough to buy a game or something. Why anyone would buy from Game when other retailers are cheaper? I answered it earlier, consumers are useless.
Well, first off, with shipping, you'll notice its $173. So only $12 cheaper.

Second, valuing convenience and timeliness is not exactly a bad thing - some people would prefer to pay slightly extra to get the console that day, and not to wait for shipping and postage, and the like.
The Amazon price is fluctuating, its bouncing between £140 and £170 as the deals and offers change, both have a free shipping option too.

Foolproof said:
Its roughly the equivalent of saying "You're a world famous and critically acclaimed director, but your music career was severely panned, so who the hell are you to give advice on directing to someone who had a successful music career?"
Microsoft got the first XBox totally right, it wasn't a massive commercial success because it was up against the monster that is the PS2. Coming second place to the PS2 is nothing to ashamed of, the PS2 and its price point and game line up where beyond impressive.

However Microsoft got everything almost perfect in the Xbox, the machine was reliable and it had its own impressive line up of PC ports and its own exclusive titles. It was also more powerful than the other consoles and games looked great. In online gaming terms Xbox Live smashed the online on the PS2. They didn't make a misstep at all, they where just to late to the party and Sony had clutched the market with the PS2.

The release of the XBox 360 is when M$ shit the bed.
 

VeneratedWulfen93

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Micrsofts service has never seemed that bad for me. From the looks of the internet I'm just a lucky 1 off case or something. Steambox is...meh. While new things are always fun, I won't be buying it. I'd rather have the next xbox. Steam has never been a big deal for me since all my friends who use it talk about how much money they go through.
 

JFrog84

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The one thing that Valve have with Steam over anyone else is cross platform compatibility. Buy a game once and install it both on Mac and PC, I'm sure that they will carry this trend on so you can have the same game on your Steambox aswell (providing theres a compatible version). Just think of how many games are available on Steam now, if just a small percent were made compatible with whatever flavour of linux Valve use we could see one of the biggest console launches for years.

I also wonder how much the console will be a sealed unit where you buy the Steambox 2 in a few years or wether they will allow some upgrading of the hardware. Not really sure how something like that would work.
 

Vigormortis

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j-e-f-f-e-r-s said:
Is Valve going to require developers to spend money and time porting over all their games to Linux in order for the Steambox to be able to play them? Surely that's going to be a massive headache, especially for older games where the developers may not even be around any more. It took Lucasarts eight friggin' years just to bring KOTOR 2 to Steam. Are they going to want to waste time and money making it compatible with Linux, given its eight years old and they never liked the game anyway? Last I checked, Steam only had 15 or so games compatible with Linux. That's not even a fraction of a fraction of their library.
As it stands, they are supposedly building their own distro of Linux. So, for all we know, it will be one compatible with the DX environment.

Still, though, until they say more we can only speculate. However, I can't see them releasing a system that would be incompatible with 95% of their own services catalog.

I also don't understand why Gabe Newell is so anti-Windows 8 and its more fenced in approach, when everything about Steam and seemingly the Steam Box is going to be fenced in. It'll basically be a PC which either requires Steam downloaded or retail-bought Steam games to play. How is that not fenced in? It's essentially a walled in, reduced-function PC.
Thing is, the Steam Box will NOT be "fenced in".

This is the one thing that's been bugging me since they first announced it. Everyone's been reading too much into misinformation or not reading enough of what's been said.

It's a unified hardware unit. The software end is completely open.

The Linux build, as far as I'm aware, will provide a ground-work from which devs can optimize their games. However, if the user wants to install another operating system, or their own media (disc based games or what have you), they can. The system isn't "locked down".

So if you want to install Origin on your Steam Box, go for it.

So on topic: I think Phil Harrison is just giving some honest advice. Console are super expensive. Micorosoft sunk $5 billion into the original Xbox alone, and much as I loved it, it hardly set the world on fire. That's a huge amount of money, enough I'm sure to sink a smaller company like Valve. There are a lot of Steam users out there, but I seriously doubt that there's a huge market of Steam users who also want a console, but are unhappy with what the Big Three have on offer. People that unhappy with consoles tend to stick with building their own PCs anyway. Microsoft knew who they were targeting with the original Xbox: western gamers who wanted console games with the graphical polish and online multiplayer of PC games. Even then, the brand didn't take off until the 360. Sony were able to come into the console market at a time when Sega was on hiatus, and Nintendo were the only other company with any major stake in the console market. The PS1 and N64 was a two horse race, so it was easy for Sony to pull ahead. And Nintendo have been making consoles since forever, and aren't likely to stop anytime soon.
I actually agree. At face value, it does seem like sage advice.

But as I said previously, I have to question the purpose of saying it in the public space and not directly. It seems more like a threat; a rattling of the sabers if you will; rather than a precautionary warning.

Especially as Harrison seems almost dismissive of Valves impact on the gaming space with Steam.

Where does Valve fit here? There isn't an easy opening into the console race, it's already pretty crowded. The Big Three not only all have current gen consoles out, they've started bringing out their next gen consoles too. The Ouya has managed to get a lot of attention on the side by offering an Android console. The Gamestick and Shield are now trying to muscle in on that same territory. What is Valve's schtick? What is it they've got that will allow them to elbow their way into the hardware race, and not get trampled by everyone else? That's essentially what I think Harrison is trying to say, and it makes me facepalm that so many people are so quick to jump on the anti-Microsoft bandwagon because he dared slate precious Valve.
They have several things that may allow them to "elbow in" to the console space.

First: We are already on the verge of a new generation of consoles. As such, many gamers are eagerly awaiting new hardware with which to game on. Likewise, almost as many are growing tired of the limited services and feature sets the "big three" are offering.

Second: There are several companies entering the gaming hardware space, with varying success, that have little to nothing to do with "the big three". Which tells us that your average gamer isn't necessarily single-mindedly devoted to one console or another. As such, just going by this only, Valve has just as much a shot as any other company currently entering the game system space.

Thirdly: They have a distribution service with a user base greater than that of Xbox Live or PSN. And, while many already have their own gaming PCs with which to play, just as many don't have "top-of-the-line" rigs. Taking this into account, I imagine quite a few of them would be interested in a gaming system that would all-but guarantee they could play any game in their Steam library. Or, in the very least, one that is dedicated from the ground up to work with Steam.

Fourthly: They aren't planning to assume control of the entire gaming community. Sony, Microsoft, and Nintendo can fight over that. Valve, as Newell has explained, simply wants to have their own hardware solution in the market space. If users and developers like it, then win/win. If it's not as popular as they hope, then at least they can appeal to a niche market. Which may be perfect for a company of their size.

Yes, Valve are a great games company. No, they are not infallible. They can make mistakes the same as anyone else. When Steam first launched, it was a legitimate steaming pile of crap. It had the benefit of several years worth of overhauling and updating to become the service it is. That's not the case with consoles. A crap launch can destroy you. Microsoft and Sony were able to get over their rather lacklustre launches because they had enough money to just keep throwing at their consoles. The same can't be said for Sega, Atari or the many other companies that have dabbled in gaming hardware, only to get their whiskers singed as a result.
Who's saying Valve is infallible? I've only time I've ever heard anyone mention the concept of Valve being "infallible" is in comments very much like yours. As in, claiming they're not.

And yes, we're all aware of how bad Steam was in the past. Believe me, I can attest to it. I was there from the beginning.

We're all also aware that a "crap launch" can ruin a company. Sega alone is testament to that. However, I can't imagine Valve, at this point anyway, attempting to release something as significant as a "console" without taking extraordinary precautions. I'm not saying it will be flawless, not by any stretch of the imagination, however I seriously doubt they're going into this blindly.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

I'm not saying Valve is perfect or faultless. They've done, and sometimes still do, some things that have bothered and irritated me to a great degree. Even so, for every person that's already blindly praising this Steam Box concept, there's at least one other person already attempting to ring it's death knell.

Which, I must say, I find particularly amusing as many here in the Escapist community practically jump down someones throat if that person starts speculating on what the next gen consoles will be like. They insist the person is foolish for making presumptions about the next gen before any solid details are released. Especially if that person questions how powerful or underwhelming the hardware will be.

Yet, when it comes to this Steam Box thing, those same people are already jumping on the "what's the point" and "who wants this" wagon.
 

Vigormortis

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Foolproof said:
A Valve steam wallet card is the size of a card. A console is the size of a console.

THis has been todays episode of "Foolproof needs to explain the obvious to people who seem to have forgotten it". Tomorrow? We'll be talking to wrestling fans who still think its real.
Wow, way to go being dismissive AND not addressing the point. If this is the usual format for "Foolproof needs to explain the obvious to people who seem to have forgotten it", then it may very well be the greatest comedy ever. If the most hypocritical.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

So we're going to argue store-front space now? Seriously?

I guess you've never heard of a warehouse before? Perhaps the "back room" of a shop, even?

Or were you under the impression that the only stock a store keeps is on the shelves up front?

Something you need to understand: If a company can sell a product and turn a significant enough profit from it's sale, they really don't care from where or from who the product beckons. If it's making them money, they'll peddle it.

Unless it involves human rights violations. Then they'll just sell it discreetly.
 

viranimus

Thread killer
Nov 20, 2009
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Well, first Ive heard of a confirmation of the steambox. Words cannot properly express just how much of a catastrophic failure I hope this ends up being.

However I think this is only going to serve to hurt things like the OUYA out of the gate. Eventually it might overtake one of the big 3, but that will easily take most of a generational cycle if not more. I would be relatively OK with valve booting Sony into abandoning hardware for all the atrocities they have committed this generation, but valve has its own problems on that ledger.

Sadly... illogical and rampant fanboyism will at least initially inflate this things viability. Heres hoping that "the bigger they are, the harder they fall" comes to pass here, for the good of all gamers.
 

Upbeat Zombie

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Jun 29, 2010
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What he's saying is true regardless of the reason for Harrison making the statement. I hope Valve have this console fully thought out, and all their bases covered. I would hate to see them take a big loss over this.
 

Brainwreck

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Look. Valve will inevitably take over Earth in about 2 years. They'll probably conquer the first extraterrestrial race in a decade. By next century, they'll own this universe, and a few parallel ones to boot.
Resistance is futile. You will be assimilated.