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Larry Magid: Microsoft Admits Xbox Rollout Was Flawed

SAN FRANCISCO (KCBS)— This week is a video-gamers' paradise in Los Angeles as the Electronic Entertainment Expo, better known as the E3 conference got underway. Microsoft is making headlines by announcing that last year's roll-out of the Xbox One was flawed.

The company made a big deal about the Xbox One being bundled with Kinect, the camera and controller that recognizes you when you walk into the room. You can also use it for video conferencing or to control your games' voices and hand gestures.

Larry Magid: Microsoft Admits Xbox Rollout Was Flawed

They also made a big deal out of the Xbox being the center of your living room. I was kind of excited about that because I love the idea of a living room computer that plays games and does everything else. But the reality turned out to be that hard-core gamers weren't on board. They also didn't like the idea of paying $100 more for the Kinect bundle. Microsoft would eventually have to unbundle it and lower the price to match Sony's PlayStation.

Console games are serious business. Gamers aren't your casual players of iPhone games or apps like Angry Birds. We're talking about games like Halo. Meanwhile, Sony PS4 is doing really well and is outselling Microsoft. The PS4 came out at a competitive price and a game-centric approach and Microsoft has found themselves having to copy that.

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