Microsoft backs down

Microsoft has been beat up over its recently announced (and very unpopular) policies that restrict how its Xbox One videogame discs are traded, resold or rented – and the fact that users would be required to have an Internet connection to play their games. In face of a public firestorm, Microsoft has backed down, saying that an internet connection will not be required to play offline Xbox One games, and users will be able to trade, lend, resell, and rent disc based games – just like with the Xbox 360.

The reversal reflects the fact that Microsoft is sensitive to the competition – specifically the upcoming Playstation 4. Sony was openly courting gamers by touting a lower price and Microsoft’s draconian DMR policies.

Microsoft’s handling of the Xbox One launch, in hindsight, bordered on a disaster. The company knew Sony was releasing the Playstation 4 at the same time. Simple research would have shown gamers distaste for the restrictions on selling, sharing and renting disc based games. The Internet should have been buzzing about the features of the Xbox One – instead it was one negative story after the other.

One area Microsoft hasn’t relented – price. The $499 price tag for the Xbox One stands.

Both the Xbox One and Playstation 4 will come out at Christmas time.