Xbox One's 'take over your living room' strategy harder in NZ

Microsoft previewed the Xbox One this morning NZ time, at a Seattle event.

The new console will be on the market at an un-named time later this year (setting the stage for Christmas showdown with Sony's coming PlayStation4). No price was mentioned.

Fans who tumbled out of bed at 5am to watch the webcast seemed impressed by the gaming tech specs, down to the vibrating triggers on the controller and the support for 4K ultra high definition.

You'll be able to use the Xbox One for Skype calls, too.

And there will be a ton of cloud features - although Microsoft allayed fears you'll have to be always-connected to the internet to play single player games.

The latest games from hit franchises like Forza and Call of Duty will be available in Xbox One versions at launch. But there was also a surprise, which drew some immediate negative reaction on social media: you won't be able to play Xbox 360 games on an Xbox One console (there were confused reports from journalists on the scene on this point, but it's spelt out in Microsoft's official Q&A here; independent site The Verge has full force coverage here; you can watch Microsoft's official event video here).

Microsoft wants the Xbox One to "take over your living room" by ramping by extending the console's role as a home entertainment hub (a project well underway with the Xbox 360, whose Live service offers New Zealanders a decent gob of ondemand movies, and an excellent selection of streamed music).

The company wants to take things to the nex level in the US by giving the Xbox One the ability to replace the box from a pay TV provider, and become your main conduit for live television. Comcast - the largest cable TV provider in the US - was name-checked at today's launch.

The Kinect 2 - also due later this year - wowed all-comers. "Assuming you’re not creeped out by it (I’m not), the new Kinect - which can read your expression, pulse and tiny movements - is really cool," tweeted Time's Harry McCracken.

Xbox meets set-top box
There's some cool stuff happening here, especially when the Xbox One was demo'd with the Kinect 2. Voice commands can be used such as "Show me what's on HBO," 

Microsoft has also signed a major deal with the NFL for American football games to be available live for Xbox One owners.

That's all smart strategy, but it's tricky to see how it will translate to this part of the world.

As ever, technology developments have to take a back seat to commercial and political scraps.

Here, Sky TV has a lock on HBO content, and is not about to give it up. And it's difficult to see Microsoft NZ going toe-to-toe with the pay TV broadcaster to wrestle off rights to All Blacks games.

When the Xbox One launches later this year, the electronic programming guide (EPG) and other live TV overlay elements will be US-only.

Microsoft says it will work with TV broadcasters and over-the-top internet content providers (like Netflix and Quickflix) all around the world for Xbox One content, but adds it till be a long and complex process. 

In NZ, it's hard to see it gettiing off first base. A Commerce Commission investigation into Sky TV's content deals, and whether they prevent new market entrants from gaining a critical mass of content, drags on endlessly (worse, it's only really an investigation into whether to have an an investigation - and even if it pushes ahead, some year, and recommends change, there's no political will in the Beehive to implement it). And the issue of anti-siphoning laws - used in some countries to prevent a pay TV broadcaster gaining a monopoly on sports coverage - is not even on the table here.

Still, I agree with Telecom CEO Simon Moutter that, over time, technology advances are going to change the way content companies like HBO think the next time they renegotiate their multi-year content deals with Sky. At some point they will decide to cut out the middle man, or at least remove his monopoly. 

Change is gonna come.

Follow @ChrisKeall

ckeall@nbr.co.nz