Microsoft backtracks on Xbox One DRM policies

Can we start calling it the Xbox 180 now? Microsoft has seemingly caved into gamer backlash and reversed its decisions on Xbox One DRM policies, bringing it in line with the current environment on the Xbox 360.

The key changes, as confirmed by Microsoft SA:

No internet required to use the Xbox One (initial online setup required).
Trade-in, lending, gifting, and game rental remains as with Xbox 360.
Encryption on disc, not on cloud (same as Xbox 360).
No region restriction on console or games (we are in an HDMI world now).
No 10 family member limit of access.

Fittingly, the man who lead the charge for Microsoft and its DRM policies at E3 2013, Don Mattrick (President, Interactive Entertainment Business), was the one to break the news over on Xbox Wire.

Today I am announcing the following changes to Xbox One and how you can play, share, lend, and resell your games exactly as you do today on Xbox 360. Here is what that means:

An internet connection will not be required to play offline Xbox One games: After a one-time system set-up with a new Xbox One, you can play any disc based game without ever connecting online again. There is no 24 hour connection requirement and you can take your Xbox One anywhere you want and play your games, just like on Xbox 360.

If you choose to download your games, you will be able to play them offline just like you do today. Xbox One games will be playable on any Xbox One console — there will be no regional restrictions.

Trade-in, lend, resell, gift, and rent disc based games just like you do today: There will be no limitations to using and sharing games, it will work just as it does today on Xbox 360.

The sharing of games will work as it does today, you will simply share the disc. Downloaded titles cannot be shared or resold. Also, similar to today, playing disc based games will require that the disc be in the tray.

Xbox One Family

The DRM debacle

Ahead of E3 2013, on 7 June Microsoft revealed its Xbox One DRM policies, which many gamers and media commentators alike labelled as restrictive, invasive, and generally a pain in the arse.

Sony masterfully capitalised on the situation, and during its 10 June E3 presentation revealed that the PS4 would work in the same way as the PS3 – I.E. no recurring Internet authentication requirements, disc-based ownership, and the freedom to sell and share your physical game discs. To add insult to injury, the PS4 came in a whole US$100 cheaper than Xbox One (US$399 versus US$499).

The gaming press and gamers alike hailed Sony as a hero, although they were simply maintaining the status quo. Microsoft’s alternative was apparently just so unappealing that Sony’s approach seemed like a master-stroke in comparison. What followed must have been one of the most painful public relations debacles for Microsoft since Windows ME launched.

The company seemed determined to stay the course, as the suits on the floor fielded an onslaught of negative press and consumer backlash during their E3 showcase week. Only days ago while E3 was simmering down, on 14 June Don Mattrick said Microsoft wasn’t backing down on its DRM policies. He also doesn’t think the price is bad considering what you get.

Well, something has changed – the collective uproar in the wake of ill-received DRM policies and a competitors apparently more appealing offer must have been a veritable brown-note for Microsoft. The company has done a complete 180 on its DRM policies. Will this be enough to calm the angry hordes and halt the momentum of the Internet hate machine?

I’d go so far as to say this is a defining moment for consumers and their relationship with console manufacturers and game publishers – this incident will come to define the next generation of consoles. For the time being, disc-based console game ownership is here to stay. It remains to be seen if that is actually a good thing – Gizmodo doesn’t seem to think so: The Xbox One Just Got Way Worse, And It’s Our Fault

Here are some parting words from Don Mattrick:

Since unveiling our plans for Xbox One, my team and I have heard directly from many of you, read your comments and listened to your feedback. I would like to take the opportunity today to thank you for your assistance in helping us to reshape the future of Xbox One.

You told us how much you loved the flexibility you have today with games delivered on disc. The ability to lend, share, and resell these games at your discretion is of incredible importance to you. Also important to you is the freedom to play offline, for any length of time, anywhere in the world.

We appreciate your passion, support and willingness to challenge the assumptions of digital licensing and connectivity. While we believe that the majority of people will play games online and access the cloud for both games and entertainment, we will give consumers the choice of both physical and digital content. We have listened and we have heard loud and clear from your feedback that you want the best of both worlds.

Thank you again for your candid feedback. Our team remains committed to listening, taking feedback and delivering a great product for you later this year.