Microsoft Corporate VP Says Xbox One Can Reshape Marketing

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Microsoft Corporate VP Says Xbox One Can Reshape Marketing

xbox one kinect

Microsoft has conflicting viewpoints on how to use Xbox One's Kinect in regards to marketing research.

Many potential consumers have worried over the Xbox One's Kinect -- whether it will always be on, what information will be collected, and what Microsoft will do with that information. Microsoft set out to rectify the situation, assuring people that the Xbox One was not designed with advertising in mind. However, Yusuf Mehdi, Microsoft corporate VP in marketing and strategy, delivered a speech at the Association of National Advertisers Masters of Marketing Conference in Phoenix, Arizona, contradicting Microsoft's earlier statements.

In the speech, Mehdi hinted at the possibility of Xbox One user data being made available for market research. Trade publication Advertising Age published a report based on the speech over the weekend. The report said Mehdi's speech addressed possibilities in increasing consumer expectations for production values in advertising due to Xbox imaging technology. Examples included gamification of advertising and consolidating attention that is currently spread out among several technologies (games, TV, and internet). Mehdi said the Xbox One could help in understanding a consumer in the "360 degrees of their life."

"We have a pretty unique position at Microsoft because of what we do with digital, as well as more and more with television because of Xbox," Mehdi said. "It's early days, but we're starting to put that together in more of a unifying way, and hopefully at some point we can start to offer that to advertisers broadly."

This news comes after Albert Penello, Microsoft director of product planning, responded to questions on NeoGAF about the company's plans for advertising. Penello said although the Xbox One Kinect features could be used for advertising, nobody was working on that. "If something like that ever happened, you can be sure it wouldn't happen without the user having control over it. Period."

Source: Advertising Age via Eurogamer

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Never thought any differently, Microsoft were always going to sell customers information to third parties. It's a business and they're going to do anything to get money, other companies sell your information, so why not Microsoft?

Just the world we live in

Not even a chuckle. This somehow wasn't as funny as I thought it would be, guess I'll just have to wait for more Microsoft fail.

This instantly jumped to mind.

omega 616:
Microsoft were always going to sell customers information to third parties.

Facebook makes their money on selling user information. Difference is, Facebook doesn't charge you $50 a year for the privilege of selling your information. :P

It's like Microsoft heard the phrase, "If you're not the consumer, then you're the product." And then thought, "Why not both?"

Another day, another Microsoft contradiction/about-face.

roseofbattle:
Mehdi said the Xbox One could help in understanding a consumer in the "360 degrees of their life."

On the face of it the bullshit phrasing of this sentence hurts my head, then I realise Microsoft is actually a generation late with this sentiment. Surely now they should be aiming to understand the consumer in the One degree of their life..

"Mehdi said the Xbox One could help in understanding a consumer in the "360 degrees of their life.""

So the Xbox 1 is a controlling stalker boyfriend? I-no, I can't even make fun of this anymore. This stopped being humorous a long time ago. Go fuck yourself Microsoft.

roseofbattle:
Mehdi said the Xbox One could help in understanding a consumer in the "360 degrees of their life."

This is simultaneously the most hilariously cringe-worthy and horrifyingly cringe-worthy thing I've read all day. Well done M$.

It's really odd that Microsoft would out their lie to the public so soon, but then I remembered that different parts of the launch team have no idea what's going on with each other.

image

No words can describe my feeling.

You might as well emboss this onto the Kinect at this point.

image

Only instead of watching for thoughtcrimes it's to sell you sh!t.

Whoo, glad to see the snarky, biased comments have already arrived.
Honestly, I don't see what the big deal is. Of course it's going to reshape marketing, for better or for worse. The service bases and customer feedback influencing the product so far has proven that.

To be perfectly frank, the majority of Microsoft are making the best of the bad situation they were given. They're removing things based on customer feedback (DRM restrictions), adding new things just because (headset), bettering the product at high cost (CPU boost)...
Seriously, they're fixing all the shit their bosses made them push out. Why are people still so against them?

Klagermeister:

Why are people still so against them?

People don't like to be spied upon in their own homes. Plus people are even more cautious and aware of this kind of thing going on in their homes thanks to the whole NSA thing.

That and their competitors product doesn't spy on anything and is $100 cheaper (maybe if they didn't insist on a Kinect in every Xbox then they could put better hardware in) , has apparently better hardware and didn't have to reverse shitty management decisions to make their product competitive.

Klagermeister:
Whoo, glad to see the snarky, biased comments have already arrived.
Honestly, I don't see what the big deal is. Of course it's going to reshape marketing, for better or for worse. The service bases and customer feedback influencing the product so far has proven that.

To be perfectly frank, the majority of Microsoft are making the best of the bad situation they were given. They're removing things based on customer feedback (DRM restrictions), adding new things just because (headset), bettering the product at high cost (CPU boost)...
Seriously, they're fixing all the shit their bosses made them push out. Why are people still so against them?

the reason for the headset is because SONY is giving them away with every PS4, the CPU boost is due to the PS4 as well. essentially people were like "if SONY is doing this why aren't you guys?"

Toilet:
This instantly jumped to mind.

Wow, this image made me very sad.

OT:
Well I've always preferred Sony's choice of using advertising. In which I mean, I like the fact that there is very little advertizing at all, and this is someone who doesn't mind watching commercials.
I'm curious to see if the XBox 180 is going to be as much of train wreck as everyone saids its going to be.

Edit:

Phrozenflame500:

roseofbattle:
Mehdi said the Xbox One could help in understanding a consumer in the "360 degrees of their life."

This is simultaneously the most hilariously cringe-worthy and horrifyingly cringe-worthy thing I've read all day. Well done M$.

lol

Klagermeister:
Whoo, glad to see the snarky, biased comments have already arrived.
Honestly, I don't see what the big deal is. Of course it's going to reshape marketing, for better or for worse. The service bases and customer feedback influencing the product so far has proven that.

You see here's the problem:

Oct 4: no, the Xbox 1 isn't designed around marketing
Oct 7: HEY GUESS WHAT WE DESIGNED FOR YOU, ADVERTISERS

I think we all really knew this around E3 when another (or the same) Marketing VP stated that the marketing department only gets a "few" pieces of biometric data from it.

This is an interesting scenario. On the one hand we hate Microsoft for being sneaky about this and we value our privacy, but on the other this would result in spam that no longer feels like spam. Ads about products you actually care about that would be valuable to know about.

It just depends on what side of that fence you're on. I personally don't want me being watched or monitored for any reason. I'm quite content with marketing companies grasping at straws when trying to address me. I'm also firmly on the side of the fence that Microsoft shouldn't be sneaky about it. They should show us exactly what opting into or out of it would look like. If we don't like it, is this something some games would require us to activate to be able to play? Like that poker game that is supposed to let people play while seeing eachother for effective reading/bluffing. Will it make you enable it like so many other products do?

We'll see. But this is absolutely a dream marketing tool and it's time for Microsoft to stop being sneaky.

Wasn't planning to get an Xb1, EVER! even before this announcement.

MinionJoe:

omega 616:
Microsoft were always going to sell customers information to third parties.

Facebook makes their money on selling user information. Difference is, Facebook doesn't charge you $50 a year for the privilege of selling your information. :P

It's like Microsoft heard the phrase, "If you're not the consumer, then you're the product." And then thought, "Why not both?"

Microsoft is charging $560 to sell your information to advertisers. In fact, I would say that Microsoft is selling YOU to advertisers.

So far Sony' s marketing stratergy of just letting Microsoft dig their own grave is working well for them. Xbox One step forward, two steps back.

I only hope Sont takes this backlash on board and leave the PS4 relatively ad free.

If Microsoft was full of people who spoke frankly and off-the-cuff, going wildly off the message their corporate masters wanted to present, that would be one thing. If Microsoft was full of people who were rigidly on-message, steering every question back to a narrow script of pre-approved answers, catchphrases, and corporate double-speak, that would be another.

It's the combination of the two that's threatening to drive me absolutely @#$%ing bonkers.

Klagermeister:
Whoo, glad to see the snarky, biased comments have already arrived.
Honestly, I don't see what the big deal is.

The big deal is that Microsoft have a device that can record everything that happens in whatever room you place it (usually main living room) and sends all that information to marketers, and they themselves have no bloody idea of how they are going to use this information. They tell the public privacy is their top priority, then they tell their shareholders Xbox One is designed for advertising. Then they tell their customers Xbox One isn't designed for advertising, then they tell their potential advertisers basically all our personal information is up for grabs.

Meanwhile they are patenting adverts that won't turn off until you interact with them (see McDonalds spoiler above) and DRM for movies/games depending on how many heads they can see in the room, and they have not yet stated that 24 hour check-in won't worm it's way into the console at a later date!

These things are what the big deal is about, and they are a big deal. This is a device with the potential to invade the personal privacy of our homes like no other device in history, and the makers of it are openly flaunting our personal data to advertisers and marketers, while telling us they won't do that?

That is something I won't stand for, and I'm pleased to see other people feel the same way.

Another example of over bloated companies contradicting themselves.

You'll never understand them, you can just try to deal with them if you choose.

So the left hand doesn't know what the right hand is doing. Not surprising really. And while the left hand is trying to reassure consumers, the right hand is jerking off advertising companies. Joy.

Ed130:
image

No words can describe my feeling.

You might as well emboss this onto the Kinect at this point.

image

Only instead of watching for thoughtcrimes it's to sell you sh!t.

Personally given a choice I'd rather have it watching for thought crimes.

Wasn't going to buy one, so no biggie. Haven't been keeping up though, do you need an X Box Live account to play? I know they dropped the compulsory online check in.

As for Kinect always on... no thanks. Tempted to buy a PS4 to make a statement, but I can't go back to PS Controllers.

Klagermeister:
Whoo, glad to see the snarky, biased comments have already arrived.
Why are people still so against them?

I am biased, and happily so. I am biased against companies that talk out of both sides of their faces on a near-constant basis, promising me one thing while promising the exact opposite to someone else. I am biased against transparent BS and companies treating their customers like they are too lazy or incapable of even basic reading comprehension. I am biased against companies that sell me a product who's features are not designed with me in mind, but that of its advertising partners, and then pretending as if it's the same as a company that gives its product away for free. And finally, I am biased against companies that try to monetize every facet of their product without regard to how badly that will effect my experience as a user.

Do they think Halo is really that good? This stuff makes the WiiU look decent.

I can honestly say, the ease and casualness with which that Microsoft VP basically described spying on their users and then selling those users personal info to other companies so that those companies can exploit the Xbox One to target their advertisements genuinely disgusted me. It's appalling. It's even a bit frightening.

I know there are a lot of companies that have similar practices, but the audacity of Microsoft to just come out and say it in public, and so shortly after they just got done saying the thing won't be for adverts, is flabbergasting.

What...the...fuck...Microsoft? Just....what the fuck?

Klagermeister:
Why are people still so against them?

No. The real question is: After the near continuous string of bullshit surrounding the Xbox One, since it's reveal, why are people still defending them?

THAT'S the question that has me baffled.

lacktheknack:

http://www.escapistmagazine.com/forums/read/7.830193-Xbox-One-Is-Not-Designed-With-Advertising-In-Mind-Microsoft-Says

http://www.escapistmagazine.com/forums/read/7.830418-Microsoft-Corporate-VP-Says-Xbox-One-Can-Reshape-Marketing

Please make up your mind, Microsoft. I don't know which reason I should be mad at you for anymore.

Why pick and choose? Go the gluttonous route. Pick 'em all!

This is one of the rare occasions where being greedy might actually be a good thing. ;D

At this point I guess you will be statistically correct in most cases if you just assume everything microsoftian to be a lie.
That means I'll just do no business with them until I get reliable info from someone who doesn't constantly lie to me.

I think I'm starting to feel sorry for Penello in this. Working Microsoft's PR must be a fucking nightmare. I wonder if he knew he was lying, or if he's just their next fall guy...

Either way, this is unsurprising... though you'd think they would realize some consumers now pay attention to what is said in advertising conferences and are willing to raise a stink over contradictions.

Klagermeister:
Whoo, glad to see the snarky, biased comments have already arrived.

What's biased about them? So far, they have addressed the facts of the matter. Microsoft says one thing, then contradicts itself. What's biased about calling that out?

Microsoft is genius, creating the adbox a system where people actually pay to get advertised and spied on.

Okay, if a company wishes to give away something without expecting cash in return, yes, I can see that company taking information on the recipient and selling that information. After all, the company has to make book somehow.

If a company wishes to charge for a product, fine by me. Whatever is in the box didn't magically appear in the company's lap, so it's only fair to ask for value.

However, if a company wishes to charge for a product and then not only expect information on the purchaser but a constant, steady, unending stream of information on that purchaser and anyone who enters that purchaser's home, said company can sit on a spike and rotate. Especially if that company lies about the practice, certainly if the company's product is of dubious quality (remember, we live in an age where Microsoft views day one purchasers as unofficial beta testers), and definitely when there will be another product out there with a lower price, less invasive manners (yes, Sony might sell a gamer's purchase information, but that's all Sony'll get), and at least a moderately better advertising campaign.

Mr. Gates, please come and tell your company to stop. I realize that you're busy being obscenely rich elsewhere but this is beyond stupid. It's sad.

Klagermeister:
Whoo, glad to see the snarky, biased comments have already arrived.
Honestly, I don't see what the big deal is. Of course it's going to reshape marketing, for better or for worse. The service bases and customer feedback influencing the product so far has proven that.

To be perfectly frank, the majority of Microsoft are making the best of the bad situation they were given. They're removing things based on customer feedback (DRM restrictions), adding new things just because (headset), bettering the product at high cost (CPU boost)...
Seriously, they're fixing all the shit their bosses made them push out. Why are people still so against them?

FYI, overclocking the hardware costs nothing, their just telling the CPU that its allowed to go faster. I'd also note that doing so generates more heat and thus both shortens its life, reduces stability and increases the risk of RROD repeat. I wouldn't thank them for that.

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