Xbox 360 IM, just a ploy to sell peripherals

Blake Snow, Monday, April 9, 2007 at 11:00 AM PT Comments (36)

Microsoft’s Windows Live Messenger for Xbox 360, announced earlier today, might sound cool to some, but to us it seems like a ploy to sell more high-margin peripherals, like keyboards, thereby boosting company’s game division revenues. After all, that tactic has worked well for Apple and its iPod line-up.

controllerxbox.pngIt is a wily move by Microsoft - after all, to instant message someone you would need a QWERTY keyboard-based device, which no surprise, Microsoft will start selling later this summer at an undisclosed price as an attachment to existing controllers.

Unless the first 10 million 360 adopters upgrade their controllers, don’t expect ubiquitous IM use from them. Even then, it’s unlikely what is being sold as a game machine will transform into a secondary messaging box over night – if ever.

In the interim, gamers will need to rely on the cumbersome on-screen virtual keyboard to communicate with friends. Yeah right – trigger happy gamers are going to do that.

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36 comments so far

April 9th, 2007
11:47 AM PT
Bob said:

Umm–you DO realize you can plug any USB keyboard in, right? I guess that sort of ruins your whole point.

April 9th, 2007
11:51 AM PT
Mark said:

what are you talking about? it plugs in to the headset jack in the controller…no need to buy a newer controller!!!!

April 9th, 2007
11:53 AM PT
drew said:

I don’t own a console; but I think this post is a little over the top in terms of making accusations at MS? I find it a pretty interesting development and its certainly an extension of the 360’s overall capability.

Gee, it might also be nice to be able to have a qwerty pad to do other non-gaming, non-IM type features on the 360. Like search for media or TV shows.

April 9th, 2007
12:16 PM PT
Blake Snow said:

Bob/Mark/Drew,

Points taken. But Xbox 360 owners will still have to purchase the add-on (as noted in the post) to realistically chat with others.

Sensational headline aside, it’s unlikely that Microsoft can gain significant traction to truly facilitate a healthy chat community on Live despite their lofty living-room ambitions. Doing it this late in the game only compounds the challenge of having people actually use the chat service, especially considering the already working and easier-to-use VOIP.

It’s difficult for any company to implement text features after first launching without a keyboard. Microsoft will only face the same challenges. Yes, it’s nice, but is it really that important (read: will it significantly help the 360’s chances)?

If it’s just “nice,” then its being sold as a value-ad with nice profit margins.

April 9th, 2007
12:20 PM PT
tim said:

if Microsoft does it, it’s a ploy. If Apple does it, it’s a cool new peripheral.

I agree with Drew that this peripheral is handy for a whole host of reasons. the console is begging for a keyboard. search for movies and tv shows (music?) ftw!

April 9th, 2007
12:22 PM PT
Om Malik said:

I don’t Microsoft is doing anything wrong: concerted company effort to make more money by selling more peripherals, and there is nothing wrong with that.

It is a smart business ploy on their part.

April 9th, 2007
12:39 PM PT
Phil Rack said:

I disagree with you Blake. I think this will sell like hotcakes! Considering the media ambitions (HD-DVD) that MS has and that it’s going to be likely placed in the living room, a keyboard is just another logical extension to the system. I would love to see a wireless keyboard for the Xbox 360.

I also would be happy to bet you that many of the Xbox 360 owners already have an MSN Live account so signing them up is no big deal.

April 9th, 2007
12:42 PM PT
Om Malik said:

Phil,

no disagreement there - it will sell, and as we said, going to make money for microsoft. which is a good thing because microsoft is a for-profit enterprise.

April 9th, 2007
12:44 PM PT
Om Malik said:

Tim,

Ploy is a strategy and no where does blake suggest that there is anything wrong with it. As far as Apple is concerned, he does make a point that it worked for Apple. Similarly it should work for Microsoft too.

April 9th, 2007
1:03 PM PT

IM is a killer app in the Xbox audience. Adding the Xbox as yet another presence location will help MS messenger immensely.

I am more interested in what other applications happen once the Xbox has a keyboard.

April 9th, 2007
1:12 PM PT
penn said:

its a peripheral, an optional attachment, a convenience for those who find the current set up inconvenient.

I dont use msn messenger on xbox or windows. So the virtual keyboard is all i need at present. if I do decide to use msn messenger…then this is the way to go for me.
I dont want to have to keep a keyboard at my side just to text people.

It looks good, it works well with the controller. The buttons are a good size (a little bigger than standard qwerty phone keyboards….

April 9th, 2007
1:38 PM PT
ErneX said:

You totally missed the point of this accessory. This keyboard goes along a new feature of the spring dashboard update that will allow you to text the contacts of your Messenger account. And be able to do that without quitting the game or having to open the dashboard.

There will be a new floating dialog in which you will be able to quickly text people without disrupting gameplay.

April 9th, 2007
1:43 PM PT
Victor said:

Ridiculous. The Xbox competes directly with Microsoft’s customers (Dell, Sony, et. al.) in terms of media center computing. It may not look like a computer but it is. And I think you are VERY wrong about IM while sharing videos, music, and gaming. It IS FUN — and COMMON to IM while sharing online experiences. It makes PERFECT sense to have these devices available from BOTH microsoft and third parties. My only surprise is that Bluetooth isn’t just built right into it to begin with.

April 9th, 2007
1:58 PM PT
Andrew said:

I totally agree with this post….hahahah I can’t even type that with a straight face. This article is BOGUS. Really you have no clue, just look at the response.

Pending any real flaws like diminished battery life or adding 5 lbs to the controller, this product looks great. I hate virtual keyboards as I’m sure most people do. I would even venture to say people would buy this just as much as people would the 120 GB HD (as long as its not way over priced). and yes of course it will make M$ money.

In short this will be a good investment both for 360 owners as ell as it developer…..oh yeah and for the future…if you don’t know what you’re talking about….Shut The F**k Up

April 9th, 2007
2:53 PM PT
Evan said:

It looks cool in theory but the keyboard insert shown seems like it is going to screw up the natural grip points of the controller.

April 9th, 2007
3:19 PM PT
Dave said:

Ploy? You do realize you can already use a standard usb keyboard on the 360 right? What a dumbass article.

April 9th, 2007
4:35 PM PT
Dave Zatz said:

Of course it’s a ploy to sell more peripherals (more Xboxes too). Unlike a large percentage of Web 2.0 stuff, these guys have a business model and would like to make some money. ;) I think the keyboard controll add-on looks nice, but hey for those who don’t want to spend the money pick up a USB keyboard for cheap.

April 9th, 2007
4:50 PM PT
Blake Snow said:

With regards to USB keyboards in existence on 360, how many gamers keep a keyboard handy when playing games? If not a majority, It’ll be tough for Microsoft to get its userbase to adopt to IM, even with the add-on.

Regarding the “choice” argument, Microsoft will reap the benefits of selling additional hardware to whom wants it. As Om said, a for-profit enterprise is simply doing something to earn more money. This isn’t a charity.

April 9th, 2007
5:28 PM PT
Nick Hawkins said:

I’m sure this will move some units. Microsoft isn’t a big bunch of fools as everyone believes. The 360 is turning out to be a nice piece of hardware that’s expanded past gaming. And considering the amount of bizarre crap that’s being marketed as Xbox accessories, this is more welcome than most.

People are forgetting that Microsoft isn’t trying to go for quick wins. They’re going to for long and protracted battles for market share. Every little addon helps leverage their dominance at the home.

I would have liked to have seen Blake’s tone be way different. He comes across as more of a sniveling brat than anything. Somehow it’s not cool and this accessory will be shot down and somehow it’s bad for a business to make money? I don’t get it.

April 9th, 2007
5:39 PM PT

I’m one of the rare owners of an xbox360 who used a USB keyboard for messaging already, and I think the real boon for this accessory is the 360’s lack of mmorpgs. A keyboard accessory adds 26 buttons, perfect for additional programmability within games needing more than the standard 8 buttons.

Meta comment–

Why is it the gaming threads bring out the love/hate?

April 9th, 2007
7:33 PM PT
Victor said:

Blake,

I think you’re thinking pretty narrowly about games. Think G A M E S — the broad audience. Many many games go well with IM. Remember there is a gaming world on PC’s that VERY VERY mature and includes chat features. Blake — people have posted here that ARE XBOX users that do use chat.

-Victor

April 10th, 2007
5:00 AM PT
zuneone said:

Web Browser…
Web Browser…
Web Browser…

If Microsoft (or Firefox for that matter) can give us an Xbox 360 browser I won’t need to buy that fancy media center PC.

Count me in on this accessory!

April 10th, 2007
6:55 AM PT
Bob said:

You can plug a USB keyboard directly into the xbox360–you don’t have to buy this attachemnt. Like I said earlier. Which I guess you finally admitted. Lots of people have extra keyboards laying around. However integrating it into the controller is pretty smart.

Chat, chat within games. more controls.

Heck–if they include a browser than you have a decent little computer there. Browsing, webmail, wordprocessing/spreadsheets at google.

MS is giving the users more value for their money–you can bet a browser is in the works.

This isn’t a ploy to sell the keyboard despite what you might want to believe. They will sell the keyboard and make a profit on it–but that is secondary to the big picture–selling more xbox360s. This will help a little–by making it more compelling. That is the point.

April 10th, 2007
9:08 AM PT
Liz said:

I wonder if SweetIM will work on this new windows live messenger ! (on that case I can throw away my pc…)

Liz

April 10th, 2007
10:33 AM PT
Blake Snow said:

I think it’s obvious by the comment turnout that my original post could have been better worded. My mistake.

I still find it hard to believe that the masses will ultimately start using their 360’s as a messaging and text input device akin to PCs or Blackberries.

The million dollar question is if the move helps MS solidify it’s “game machine” as a legitimate and in-demand living room pc. Time will tell.

April 11th, 2007
6:34 AM PT
Bob said:

I doubt the masses will move to xbox360 solely for IM. But I imagine that a decent enough number of xbox360 owners will use it for IM in the future. If they add browsing then it is possible that it could get bought as a “computer” if all one needed was email, surfing, light office work that can be done at google. Problem is that a “real” computer with monitor and printer can get had for considerably less than $480 (Elite).

But as they keep adding features it improves the value.

Any reports on how much the controller keypad will cost? I would guess $19.99–but that is just a guess.

April 13th, 2007
9:15 AM PT
Steve said:

I for one just want a browser. I don’t care what anyone thinks because I love my 360. I will probably just go with the usb keyboard because it is much easier to type on and I am sure it will be cheaper.

April 22nd, 2007
8:06 AM PT
Greg said:

u guys are idiots….this thing is gonna be tight and ur just mad cause u don’t have ne friends to talk to over it….so quit ur whining and go complain about the PS3….o wait that already sucks enough….

April 27th, 2007
9:13 AM PT
Joseph Wallis said:

I think what is going to make WLM killer on the 360 is the fact that the voice is configured for you already. One hurdle with WLM on the PC is the cumbersome configuration of video and sound. I think this is going to make voice chat on WLM more prevalent. If MS does the right thing and adds Live Vision camera support to the WLM client, 360 users can make video calls to PC users. That is the ultimate killer app and I think it will go a long ways to bridging the console PC gap they are aiming for.

April 27th, 2007
6:19 PM PT
Todd said:

Can you plug a wireless keyboard and mouse into XBOX 360?

April 27th, 2007
7:08 PM PT
Krisjuan said:

There are a few mistakes in this post and many bloggers blog on this one and amplified the effect.

  1. To talk to someone on WLM, you DON’T need this one. Get it? This is just a fancy toy for overpopulated virtual keyboard hater. This one release in unknown time frame in summer, while the update will release in early May, without charges, period.
  2. Microsoft did not disclosed the price for this one yet. But Blake suggests Microsoft would use “high-margin” strategy just like Apple would do. It’s a wild guess. Historically, most XBOX360 peripheral are not in this high-margin strategy.

If it’s really a ploy to sell peripheral this way, why Microsoft allows USB keyboard to use on XBOX360 and compete with this thumb keyboard? Why they don’t launch WLM and this keyboard altogether in summer?

Think again! If you owns a XBOX360, will you happy with this new firmware and keyboard? It’s definitely better than paying a few bucks for 802.11n.

May 29th, 2007
12:29 PM PT
Rich said:

I have used the messenger service since the update came out. I have a wireless USB keyboard from an old computer that was just collecting dust that works great with it. It’s nice if the wife is at the office working late or friends are not on their Xbox but their computers intead, I can message them and receive messages even when I’m in a game. A great addition for the 360. You can pick up a cheap wireless USb keyboard around here for $10-$15, so if you have friends on messenger go grab one. You won’t be disappointed, because it’s free! Another way to communicate with friends and family far away without any additional cost. Blake sounds like a disgruntled ex-Microsoft employee or something.

June 12th, 2007
11:36 AM PT
Kevin T said:

My solution is as the above comment

i bought a wireless usb microsoft keyboard for 9 pounds on ebay and it works great…

the whole point of the process is to cut out the PC by using the xbox 360 to chat from your sofa (for those of us who dont yet have a media center pc connected to their tv)

rumours say the Windows Live Messenger Controller add-on for the 360 will retail at 40 pounds

if this is the case, i’ve saved myself 31 pounds…

June 13th, 2007
12:11 PM PT
Chris said:

Ploy or not, I found this page because I’m looking for places to buy this attachment. I guess it’s not out yet :(

I hate getting a message because it’s a pain to respond with the virtual keyboard. However this would make it so much better.

And whoever said it looks like it’ll mess up your grip, you do realize it plugs into the headset jack. Which means it unplugs as well for when you want to game and not message.

June 30th, 2007
4:43 AM PT
JJ said:

I think it’s f***ing GENIUS IM to contact pc users that dont have an xbox? my friend’s list has grown ,i never used to find the time to IM people cos im playin xboxlive all the time!! now ive got both communities all in one place.
some people only use a pc for msn? HOW CAN SONY COMPETE? ive also heard that pc gamers will soon be able to play xbox gamers over xboxlive sony cant compete with microsoft in this market! bye bye ps3!

May 11th, 2008
11:14 AM PT
HHB said:

360 owners have always been able to add any USB keyboard to the system. Although this isn’t as close at hand as one attached to the controller. I’ve been searching Google, Microsoft, and many many review sites to find out it the MS MCE IR Keyboard will be compatible with the 360 (Elite). It would only make sense as the MCE remote is compatible so obviously the same IR instructions are shared. Can’t seem to find any info though. Bought a MCE keyboard 3 years ago and haven’t used it at ALL as I don’t use MCE 2005 and wasn’t told of it’s LIMITED compatibility! Grr.

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