Sunday, December 1, 2013

Is Xbox One’s Plan To Conquer The Living Room Profitable?

November saw the release of Sony’s Playstation 4 and Microsoft’s Xbox One, two gaming consoles that, along with Nintendo’s previously released Wii U, make up a new generation that will continue to push game creativity and design to greater limits. While Sony and Nintendo have gone the more traditional route of offering devices built primarily around games, Microsoft has thrown down the gauntlet on the “war for the living room,” hoping to be the only set-top box a family needs to play games, watch television, Skype, and more. While the Xbox One is an impressive piece of equipment, the overall changes in the modern gadget market—many of them brought on by mobile devices—may make the Xbox One’s offerings less attractive than Microsoft hopes.

Live Television Viewing Is On The Decline Around The World

One of the most impressive aspects of the Xbox One is the ability to change television channels with voice commands. No longer needing to pick up the remote and constantly switch between inputs, the Xbox One lets you pause a game with your voice, then seamlessly call up live television. If you’re feeling particularly antsy, you can split the screen between live TV and gaming, jumping back to Forza or Dead Rising during each commercial break.

While this is an impressive and wonderfully futuristic feature, the reality is that live television viewing is on the decline in the industrialized world, with more consumers than ever before using recording devices such as TiVo and dvr, as well as streaming video via Netflix, Hulu, and others. The developing world fares even worse for the traditional cable market, with many areas bypassing television entirely to favor video streaming on mobile devices as the sole access for television and movies. If the number of cable subscribers continues to decline in the upcoming years—and the remaining consumers continue to favor dvr recording to live television—Microsoft may find itself with an impressive feature in need of an audience.

Skype Is Already Wildly Popular On Mobile Devices

Another oft-touted feature of the Xbox One’s Kinect camera is the ease with which it allows a user to Skype on their giant living room flatscreen. Will this feature find a market with consumers who’re interested in pausing their gaming or television-watching to videochat on their 50-inch Samsung? It certainly remains a possibility, but with the ever-present availability of Skyping via smartphone, tablet, or laptop—along with the increased privacy these devices afford—Xbox One’s ability to video conference in your living room may be another feature that’s appreciated from a technological standpoint but rarely utilized.

Xbox One Strives To Be The Dominant Set-Top Box In A World That Seems to Be Moving Away From Boxes Entirely

While it’s unlikely that the mobile revolution will de-centralize the living room completely, the fact remains that consumers are attracted to increasingly portable and personal devices for their entertainment needs. Regarding the set-top boxes that are still in popular use in the living room, they appear to be smaller, streaming-based devices (such as the Roku player, Google Chromecast, and others), or dvr recorders (which the Xbox One can’t as of yet replace). Being able to ditch your digital cable box is certainly nice, but with the size and weight of an 80’s VCR, the Xbox One won’t win any space-saving awards anytime soon. As the world’s tech becomes increasingly smaller and more mobile, Microsoft’s newest console sometimes gives the appearance of being the futuristic fantasy of an older, extinct decade.

As consumers gear up for another round of console wars, Microsoft has been clear from the beginning that the Xbox One offers more than just gaming. But only time will tell if the goal to conquer the living room is a goal still worth having, or if the all-in-one multimedia box is a throwback from a simpler, gentler, non-digital era.

Author bio:


John is a blogger who still remembers the first time he streamed Netflix through his Xbox 360. He writes for gadget insurer Protect Your Bubble, who can give you an extended warranty on your new Xbox One, even if you never use it to Skype with.