Developer American McGee gives 5 reasons why Xbox One will fail in China

#1dnmtPosted 4/30/2014 10:47:17 PM
Taken from his personal Facebook:

It's a good thing Microsoft is rolling in cash, because they've just made announcement of a plan that's going to cost them dearly. Of course no one reporting on this is any wiser to the blunder than Microsoft, so here are my Top 5 reasons why Xbox One will fail in China:
1. Can't sell sand at the beach. Xbox One, PS4 (and all previous generations of consoles) are ALREADY IN CHINA. There is NO effective ban. Go to Taobao (www.taobao.com) and punch in "Xbox One" or "PS4." You will find (as will Chinese consumers) consoles and games available for next-day shipping to your doorstep in China.
2. The set-top box market is ALREADY SATURATED. "Set-top box" is the #1 selling point of the Xbox One in announcements related to the China launch - with BestTV as their local partner. XiaoMi and other local brands already control this business and offer better, cheaper boxes built atop Android-powered dedicated devices. Oh, then there's the fact that 99% of streaming content is consumed on mobile devices or PCs.
3. Piracy. If you've not seen it in China, you've not seen anything. It's massive, awe-inspiring, and will poke giant holes in even the best digital content plans.
4. Cultural/audience disconnect. The target market of kids/young-adults from middle-class/wealthy families don't have free time to spend on console games (or TV/movies). Between the ages of 3~22 years of age they are heads-down with study, school, and extra-curricular activities that will increase their chances of competing successfully against others in the super-hot Chinese job market. Those that aren't studying don't have money to spend on a console.
5. Censorship and restrictions on content. Any console shipped out of the Shanghai FTZ will be unable to play any games other than those approved by the Ministry of Culture (and other media oversight bureaus). That means content for the device will be limited and inferior to what could be had by purchasing a black-market console on Taobao. Chinese consumers are wise to hardware/software restrictions and prefer to purchase "rooted" devices whenever such restrictions are put in place. Back to point #1 and #3.
(I could make more points... Chinese consumers are addicted to mobile phones, gamers get their kicks online, consoles are dead, etc, etc... but there's no stopping a dinosaur. I'll just leave it at 5.)
Here's the slick promotional video from Microsoft and BestTV:
http://www.gamespot.com/videos/xbox-one-coming-to-china/2300-6418565/
Hey Sony, you know better than to follow Microsoft into this punji pit, right? Right? Sony?


What do you guys think? He makes some valid points despite being a notorious loon.
#2GambitbuzzkillPosted 4/30/2014 10:54:54 PM
Well if he said then I don't know what MS is thinking cause clearly he knows what he is talking about.
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#3TheeLeehamPosted 5/1/2014 4:08:23 AM
He should of made a top 5 reasons why all his games fail.
#4DojoMaxPosted 5/1/2014 4:12:06 AM
Who?
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#5Styrof0amPosted 5/1/2014 4:20:14 AM
dnmt posted...
What do you guys think? He makes some valid points despite being a notorious loon.

With virtually no knowledge of Chinese gaming culture, I believe #2 and #4 could be deciding factors.

Gaming is huge in China, and I can understand why any company would want a slice of that pie. only time will tell if MS was reeady for the land of F2P MMOs.


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#6-FryShakeWad-Posted 5/1/2014 4:23:36 AM
TheeLeeham posted...
He should of made a top 5 reasons why all his games fail.


Was gonna say that.
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#7InjusticeRebornPosted 5/1/2014 4:24:06 AM
DojoMax posted...
Who?


This. But having read those 5 points, I can see why dnmt supplied us with "notorious loon" at the end. Point 3 made me laugh the most.

Also, I wondered when this would show it's face on this here board. Surprised it took so long, actually.
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#8YumeOMiruPosted 5/1/2014 4:24:34 AM
As a frequent traveler to China, I can reassure you the things he says about consoles and piracy are accurate. The people that do buy consoles, they are in all cases rooted/chipped/tampered with to be able to play pirated copies of games.

The stores that sell these stuff even have a 24/7 phoneline to help/teach you how to play/download games for free.
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#9PoweredMilkManPosted 5/1/2014 4:26:59 AM
1st console allowed to be sold in china legally. I think it will sell decently there. There's a lot of people in china.
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#10nableetPosted 5/1/2014 4:28:01 AM
-FryShakeWad- posted...
TheeLeeham posted...
He should of made a top 5 reasons why all his games fail.


Was gonna say that.


Ok guys, someone posted some reasons why xbone (and probably any console) will fail in China, what shall we do?

A) Dispute his points in a sensible manner

Or

B) Attack him about something unrelated to what he is saying.

Well, as xbots we must opt for B! Attack! Attack! Attack!
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