The other Microsoft-Apple battle

Everyone likes to talk about the battle between Microsoft and Apple on the OS front, but that seems like old hat to me. Sure, there's certainly a battle being waged in that space, but is it really as hotly contested as some want to believe? Call me when Mac OS X hits 20 percent market share.

The Xbox 360 is the Apple TV killer

(Credit: Microsoft)

But there is one battle raging between Apple and Microsoft that many people don't even see. No, it's not in the MP3 player market where the iPod reigns supreme, it's in the home entertainment business. More specifically, the battle being waged pits the Apple TV against the Xbox 360.

Now I know what you're thinking -- "isn't the Xbox 360 a video game console and the Apple TV is a media device"? Yes and no. The description of each device may be correct, but the Xbox 360 description doesn't say enough about the console. Aside from its gaming capabilities, Microsoft's product performs many of the tasks already found on the Apple TV -- streaming entertainment, music, movies and TV show viewing and a hard drive that can store your favorite material.

And with an installed base of over 18 million that easily eclipses the Apple TV's 1.7 million installed base, there's no reason to suggest Microsoft can't win the battle and finally deal the Apple TV its death blow. And here's how it should do it:

Xbox Live Marketplace is an extremely compelling feature on Microsoft's console. Unlike every other console to-date, you have the opportunity to acquire and enjoy movies, music videos and TV shows. Right now, the service has over 300 movies to watch on the marketplace and well over 340 options for TV shows.

Realizing this, why hasn't Microsoft done more to promote the Xbox Live Marketplace and contend that it's a place for people to be entertained without the need for DVD players, extra set-top boxes or even Apple TVs?

Perhaps it's because Microsoft is in a strangely dangerous position. And to make matters worse, the company doesn't want to create an identity for its platform that mimics Sony's mistake when it tried to make the Playstation into more than a gaming console.

In the gaming industry, hardcore gamers usually don't respond well to consoles that try to do too much. Let's face it -- before Sony told the world that the Playstation 3 is really a gaming console, gamers looked at all of its features as the center of the home and asked why they would pay for something that was overpriced and didn't focus enough on gaming.

Aside from that, the Wii is a fantastic case study that shows exactly what the gaming industry is all about. Instead of outstanding graphics or TV shows, most gamers decided that games are the most important element of a video game console and went with the Wii. Left in its dust was Microsoft and Sony -- the two companies that wanted to do more than gaming.

So what's really going on? Is it that people want to only play games on their consoles or is it simply that Microsoft has been incapable of promoting its services better? The answer is probably a little bit of both.

Hardcore gamers are most likely to play games and not worry about TV shows or movies. But as the Xbox Live Marketplace continues to grow, the casual gamers and less-hardcore players will find something they like and propel the service to a more important standing in the business. But alas, word of mouth won't be enough for Microsoft if it wants to supplant the Apple TV and every other media extender in the business.

Instead, it should start promoting the Xbox 360 as the Apple TV of gaming. Instead of ignoring it and watching it grow organically, Microsoft needs to find a way to jump start sales and marketing may be its best bet. Let's face it -- most of the future Xbox 360 owners are looking for something more than gaming and Microsoft is the only company that can provide it.

If nothing else, the Apple TV has shown that some people want the kind of functionality it provides. But if given the chance to eliminate one box in their home entertainment center in favor of an Xbox 360 that does everything an Apple TV can do, wouldn't people choose to do just that?

Microsoft is on to something with its media extender capabilities and the Xbox Live Marketplace. But until it starts telling the world that its console can do everything an Apple TV can do, it'll be the forgotten platform in a growing market. And when the market finally booms, Microsoft could be behind the pack if it doesn't change its tactic and get moving.

[ghbuchholz]

The ability to purchase/play digital content is starting to get some penetration. Now it will be interesting to see if consumers jump on and start using these services en masse.

[djfelix512]

Here's the problem with this proposition. My parents would NEVER buy a gaming system. Regardless of how big a push Microsoft made, they would never buy one. It's that simple.

My parents would absolutely buy an Apple TV though. They already have iPods, use iTunes, and have a good feeling about Apple. The Apple TV has a very easy to use interface, and a tiny, easy to use remote. There is no way that anyone could convince my parents to buy a gaming console and use a gaming controller to watch movies. It's just not going to happen, even if it was as easy to use as an Apple TV, which it isn't.

[revolver777]

Exactly. People who lack the experience with technology simply assume everything they hear about Apple products without realizing that they're never innovative, hardly work as well as promoted, and are generally one of the bottom of the pack products in their specific genres.

[Commandoclone87]

Do you have an Xbox? Or are you just one of those types that complains about MS at every chance? My family actually has 2 360's and ordering from the Live! Marketplace is as easy as 1,2, and 3. also the 360 does have a remote control add-on and Live! doesn't even require a monthly subscription. Just sign up for a free account and you get full access.

[djfelix512]

You have missed the point of my comment. The Apple TV is a video device. Whether it is as easy to use as a 360 or not is a moot point. People like my parents are not going to purchase a gaming console to watch downloaded video. The Apple TV has a single purpose: Movies, Videos, and Music in your home entertainment system. They already have Apple iPods, already use iTunes, and are already comfortable with Apple. The perceived reality here is that an Apple TV will be as easy to use as their iPod and as a single purpose system, will perform that function well. That's my point.

Even if you have a family with kids who play the 360, why would the kids give up their time on the 360 to watch episodes of Scrubs or the latest Hollywood movie? The answer is, they won't.

This has nothing to do with Microsoft vs. Apple. I'm no fanboy, but it is impossible to ignore Apple's success with an objective mind.

[brandonh33]

Is this just a poorly written advertisment for Xbox? It sure sounds like it. Microsoft does advertise the xbox as a media extender. Also, may I mention that the PS3 has almost all the functionalities of the xbox when it comes to wirelessly sharing media between your console and your computer. Sony has never even mentioned this feature. Sure it doesnt have a great interface on the ps3, but is fairly easy to use considering its layed out like browsing files in explore. I have all my music, videos, and recordings able to stream over to my ps3 and 360.

Now about those comments in the article about the ps3. Over priced? Are you kidding me? When the ps3 came out Sony was losing around $300 on every console. A few months ago they got the price to break even with the 40gb $400 version. You want to go into talking about over priced? Fine here is a little math problem for you. $450 120gb 360+wifi $100+Possible blu-ray drive $200+bluetooth $40+1 year xbl $50. That totals to $840. $400 ps3 + $100 250gb hdd on newegg. Total $500 dollars.

You might question me on putting the blu-ray drive on there so let me explain. The NUMBER ONE thing that puts the ps3 into the tru next gen category is disk capacity. Aside from being able to play 1080p movies, the disk is needed for the future of gaming with the current 50GB capacity (expandible to 200GB in future with firmware upgrade). Look at the soon to be released game Metal Gear Solid for ps3. Because of the sheer size of the game, the online play feature will have to be on a separate disk. Dont even try to fit the over 75gb of data on DVD's for the 360. Then you have to factor in that even if Microsoft did get blu-ray, they could not use it for games. There are several reasons but the main point that is fairly easy to understand is that you cant just start making games for the select people that buy the drive and leave everyone else out in the cold.

You might have some conflictions with my pricing for the system but first of all I was just getting the 360 as close to spec as I could with the ps3. If you wanted to remove some items from the list or use different versions of the consoles the ps3 will always come out cheeper by a significant amount.

You also mentioned some opinions about the ps3. I dont believe you should use your personal opinion so strongly against a device acting like this is the way everybody feels, because that is simply not true. It is a minor opinion of yours and nothing more than that, an opinion.

Ok sorry about my rant that was slightly off topic but the truth must be told! :) Thank you for your time. (As if you really read this all the way through)

[brandonh33]

Sorry about the long ugly post, but once I posted it all of my paragraphs disappeared

[revolver777]

Ps3 is dead.

[revolver777]

[http://Also, may I mention that the PS3 has almost all the functionalities of the xbox when it comes to wirelessly sharing media between your console and your computer. |http://Also, may I mention that the PS3 has almost all the functionalities of the xbox when it comes to wirelessly sharing media between your console and your computer. ]

I have a ps3, and a 360 and home will never live up to Live. There are several reasons for that but first and foremost is because Home is free, and Live is not. You get what you paid for, simply put.

I don't think that Microsoft promoting this service will really do too much for them in defeating the Apple TV. Most people who buy an apple tv only do so because they are uneducated apple fanbois. For the majority of people who would buy one for the functionality of it already realize that there are far superior products on the market, or simply acquire their media "other ways."

[brandonh33]

@Revolver777 uhh what? Is it just me or did your post not make any sense? Then you comment on my post "The ps3 is dead". If you are going to argue with me I would prefer that you speak english and use FACTS. So please I urge you to come back with some solid facts of why the "ps3 is dead". In my opinion statments like that just mean you are scared or something similar. So please, again, I urge you to tell me why my ps3 is dead. I wouldnt want to falsly accuse you so I am giving you your chance to redeem yourself. To anyone else feel free to talk in his place.