Techcrunch and Microsoft: Two WTF? moments…

Two items appearing in my Google Reader subscriptions almost led to me exclaiming WTF? on a crowded Monday morning commuter train. (Post now updated due to more info – see below)

First up was the strange experience of seeing Michael Arrington and Techcrunch complain about someone posting a video of the Crunchpad which ‘was not a sanctioned or official video‘. And which has since been taken down. The video was of the CEO of Fusion Garage, who are partnering with Techcrunch on the Crunchpad, unboxing the last prototype.

Let me repeat. Techcrunch has complained and taken down video which was ‘not sanctioned or official’.

Techcrunch.

On the plus side, it’s relegated the Mike Arrington call to end handshakes to the second most bizarre thing I’ve read on Techcrunch.

On a more positive note, Techcrunch also revealed a major Microsoft marketing blunder.

If you download Internet Explorer 8 through this specific site, Microsoft pledged to donate 8 meals per download to a group called Feeding America.

As MG Siegler pointed out, there’s a slight problem. For each download, Microsoft pledged to donate $1.15 to a maximum of $1 million.

‘Only complete downloads of Windows® Internet Explorer® 8 through browserforthebetter.com from June 8, 2009 through August 8, 2009 qualify for the charitable donation to Feeding America®. Microsoft® is donating $1.15 per download to Feeding America® up to a maximum of $1,000,000. Meals are used for illustrative purposes only. Meal conversion is effective until June 30th, 2010.’

Which means that each ‘meal’ would be $0.14.

*update 1pm*

As revealed in the comments below, the figures for the cost of meals is actually directly from Feed America’s figures, so it’s incorrect to state that Microsoft set the cost of a meal at $0.14. Rather, it’s bloody impressive Feed America manage it!

I’d still argue that $1 million is a relatively small commitment comparative to the other marketing campaigns etc which Microsoft is running – and that the IE8/Feed America donation is definitely part of a marketing plan.

Oh, and for the record, I’m an MS fanboy if anything as a PC person over Macs, and an Xbox fanatic!

*end of update*

As MG has gone on to explain in an update, it’s a good thing that Microsoft has pledged money to a good cause – it’s just that $1 million is somewhat dwarfed by the $80 million that is being spent on Bing promotion – and linking it so tenously to the number eight is marketing gone mad.

You can imagine the meeting:

“Why don’t we do something with social responsibility – how about donating some money when someone downloads IE8?”

“Yeah, but how does that promote us? Where’s the brand? Hang on, why don’t we donate 8 meals per download, and that way it promotes IE8″

“That will cost us a lot, though”

“Yeah, but if we limit it to $1.15 in the fine print, noone will notice, and we’ll look like we’re as nice as that company who do no evil”

Lesson 1:

If you’re going to embrace the idea of social responsibility properly, it’s probably better to be honest and open about what you’re actually doing, and build on that goodwill, rather than trying desperately to tie it into your brand message and then looking like a bunch of cheapskates.

Lesson 2:

And as a journalist, I’m well aware of the need to offer companies a ‘right to reply’, and the benefits of going through official routes to fact check etc – but I’ve also lost count of the Techcrunch stories which get put out as quickly as possible, and then updated as facts are checked to ensure speed of information, and a fast placement on news aggregators.

If you’re going to live by the sword of fast tech blogging or social responsibility, then you also have to be willing to accept a few flesh wounds…

The Xbox could rule the living room with bundled internet access

Since I questioned Microsoft’s change in marketing strategy for the Xbox, I’ve been thinking about positive suggestions for boosting the market share of the Xbox 360. And I think I’ve got a good one, although it might be bit odd – as always I’m hoping your comments will aid my thinking.

The idea came to me as:

Microsoft’s Xbox 360 is a major attempt to ‘own the living room’ with a device which converges gaming (especially online gaming), videos, and other entertainement and community building.

Xbox Controller by A_Hermida on Flickr (CC Licence)

Xbox Controller by A_Hermida on Flickr (CC Licence)

The Xbox Live service is a major selling point for the Xbox.

Videos on Demand were one step towards convergence.

Then integrating with Netflix was the next step to boost the pretty measly catalogue of videos on demand. (Sadly still unavailable in the UK).

US broadband suppliers are starting to limit data. Meanwhile in the UK, far lower limits are normal. In fact, one major reason for my decision to go with Zen Broadband was that they offered a decent data limit for 2-8Mb connections, unlike most other ISPs (It’s the maximum speed I can get in my area). But even with a 20GB limit, I’m getting closer and closer to hitting the data limit every month, as more and more of my media usage is online.

So why doesn’t Microsoft bundle internet access with the Xbox 360/Xbox Live accounts?

There may be issues around conflicts of interest etc, but if Microsoft wants to own the living room, particularly outside the U.S, then perhaps becoming an ISP, or partnering with an existing supplier might be the best move they could ever make.

1. If they offered the highest data limits in the market, they’d give an added incentive for families to pick the Xbox.

2. Increased data limits would encourage the download/renting of full films online – as it is, a handful of films would mean no more internet for a month for me.

3. They could ensure maximum compatability, and also work to reduce issues with lag and connections. There are still many issues with online gaming, especially given the speed differences between U.S and U.K for example.

4. They’d be in a position to stimulate broadband improvements, and drive down prices by subsidising the costs with the increase in revenue from an uptake in sales, Live Accounts, and VoD. Plus it may stimulate more innovation in the services being offered. And they’d also be able to benefit from offering services from the entire Microsoft business to families which are likely to have other internet-enabled devices alongside their Xbox.

5. It gives an added incentive for people currently using/considering a PC as a media centre to use the Xbox instead.

It seems to make sense, but in my enthusiasm I may have missed some reasons why this would be difficult/impossible – so please do help improve my thinking through the comments.  Maybe we’ll end up with better broadband because of it!

Has Microsoft made a major marketing mistake?

I downloaded the new Xbox Live Experience and Dashboard for my Xbox 360 last night, and while the functionality is taking a little bit of time to adjust to, I’ve already decided I don’t like a major part of the strategy. And more importantly, it may be a big mistake for Microsoft.
Badgergravling on new Xbox Live

Everyone in the world knows the success that Nintendo has had with the Wii – which ignored the graphical arms race to focus on party games and family friendliness, plus little WiiMii avatars etc.

But I didn’t buy an Xbox 360 for those reasons. I bought it because I loved the Xbox Live functionality, enjoyed fairly mature games, and saw the potential for digital music and film distribution.

I liked the fact the Xbox was seen as slightly more hardcore than the family Wii or the trendy PS3. I liked the fact it was more of an unusual choice, and that in my opinion it looked quite stylish. I like the fact the dashboard system was quite simple and functional.

But with the new dashboard update, Microsoft has essentially forced me to turn my Xbox 360 into a less fun Wii.

And suddently the Xbox looks more like a copycat than a leader. That’s the marketing mistake.

The two incarnations of the Xbox did something different to the rest of the market by concentrating on online gameplay, and becoming the first console to make good use of broadband. That was the Purple Cow. It’s what built a following for both Xbox and Halo.

It’s what made me tell friends and colleagues why they should get an Xbox and meet up online. Why I talked about how Microsoft were being brave enough to blaze the trail for online gaming. And why people talked about Sony killing their brand. There was talk about convergence, and owning the living room. And as someone who grew up with videogames and has now reached middleage, it was a sign that the average adult could engage with gaming on their own contemporary level, rather than as a childish indulgence.

All that’s now gone.

Not because now I’m forced to represent myself as a cute little fella in a suit and comedy hat.

But because I’m forced to admit MS has copied the success of Nintendo in the cute market, and forced consumers who paid for a different brand and image to copy as well. It’s no longer a hardcore choice, or a Purple Cow. When two competitors start chasing the same ideas, and Nintendo already has the lead and a price advantage, it’s a battle the Microsoft brand can’t win.

Have you upgraded to the new Xbox Live experience, and do you agree or disagree? More importantly, how do you feel about the avatars, and the fact it brands Microsoft as copycats, not tech innovators – and could a brand with the legacy of Microsoft ever compete on that level against Nintendo?

Note: edited a reference to prices, as I incorrectly priced the 360 as more expensive than the Wii.

A market crying out to engage your brand?

Last weekend my willpower collapsed and I bought Xbox 360 blockbuster Halo 3. I’d tried to resist, but when 31 friends are online, and 30 are playing one game, it’s near impossible to hold out.

On Sunday evening, over 900,000 players were online, and numbers have topped 1 million. That’s people online at any one time, and people that have paid not only for the game (Up to around £49.99 for the limited edition version), but have also most likely spent out on buying an Xbox Gold subscription for 12 months of online gaming.

Now imagine if your brand or publication had access to a code to make the main character in Halo3 run faster, take more damage, or even a special character design?

Think the chap that has paid £40 to get a game on release, rather than waiting for a discount, would find it easy to resist? Especially with the peer pressure of 30 of his friends waiting to be impressed by his new skills?

And whatever the brands, there’s a likely game to tie in. Whether it’s a racing game, an adventure game, a sci-fi shooter, or something oddball and cute like Viva Pinata.