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Microsoft to Lockdown Xbox 360 Peripherals - 11.8.05

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Xbox 360A contract between Microsoft and a third-party peripheral maker has shed some light on an MS plan to control exactly what accessories can connect to the Xbox 360.

According to a report on C|NET, the Xbox 360 will feature a security system that allows only authorised peripherals to work on the machine; to be placed on the authorised list, manufacturers will have to shell out royalties to Microsoft.

Microsoft's explanation for locking down what connects to the console was simply that they wanted to "make sure the customers are getting the best experience possible", the reasoning being that only companies that make high-quality products will be willing to pay the royalties.

The alternate view of the plan however is that Microsoft see this as a way to squeeze even more profit from the console:

The new royalty program could be part of Microsoft's goal of turning a profit with Xbox 360, something the company was not able to do with the prior generation console, said IDC analyst Schelley Olhava.

"Microsoft has made it very clear that it's all about profitability" with this generation of console, Olhava said. "Maybe this is a way they are looking to make additional revenue off of the Xbox."

Digging profits out of Xbox

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By Rob (Email: Rob at igniq dot com) 



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