Microsoft to charge royalties for peripherals

Ty

Roberta E. Lee
Veteran
Sorry, no link. Just read an email from one of our studio directors.

According to reports by Cnet, Microsoft is instituting a royalty policy for all Xbox 360 peripherals. This means that a peripheral manufacturer would have to pay Microsoft a fee for every 360 peripheral sold. This system, which is similar to the deals licensed third-party software manufacturers make with Sony or any other console maker, is unprecedented in its all-encompassing nature for hardware.

Quote mentions Cnet. Perhaps an article can be found there.
 
Wow.....I wonder how this will affect Third-Party companies..and there creating of peripherals. I usually buy stuff like that from the company that created the the system anyways...so it doesn't really affect me.
 
I don't care. I wouldn't buy a 3rd party controller or such anyway. I did buy two Madcatz xbox controllers, but those were for my PC, using a Lik-Sang xbox-to-USB converter cable. MS can charge whatever the heck they like from their peripheral licensees for all I care. :)
 
Ya I only buy first party stuff anyways.

I'm still kicking myself for buying the Mad Catz HD cables.

The article is a little misleading I think, they say it encompasses all hardware but I don't think all hardware is eligible for 3rd party.

From what I recall only certain things like controllers, keyboards, steering wheels etc where available for licensing, while many other peripherals will only be offered as first party.
 
I bought logitech controllers for my xbox which I'm quite happy with (for $14 a piece too!). It would suck if they ended up being a lot more expensive because of license fees.

Still, who knows if this will even fly in court. Using the DMCA to try to restrict people from creating hardware that interacts with yours is pretty far fetched. They risk having provisions of the DMCA thrown out if someone seriously challenges it, and that would bring the house of cards tumbling down.

Nite_Hawk
 
Hell ya I'd buy logitech.

One of the few hardware makers I would actually prefer over 1st party.

More specifically 3d parties can only create WIRED controllers, joypads and steering wheels and maybe some others, but will not be able to license wireless controllers, memory cards, or HDD's.

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Interestingly, the Mad Catz contract also specifies that the firm is only permitted to make wired controllers for the Xbox 360, seemingly locking it out creating other acceessories such as wireless controllers, memory units or add-on hard drives.
It's not clear whether Microsoft will allow other third parties to make a more expansive range of peripherals, or if it is planning to offer first-party versions of those accessories only
-----------------------------------------------
 
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Nite_Hawk said:
I bought logitech controllers for my xbox which I'm quite happy with (for $14 a piece too!). It would suck if they ended up being a lot more expensive because of license fees.

Logitech (and any other respectable 3rd party HW) was already licensed. This really only effects the really crappy unlicensed 3rd party HW.

Still, who knows if this will even fly in court. Using the DMCA to try to restrict people from creating hardware that interacts with yours is pretty far fetched. They risk having provisions of the DMCA thrown out if someone seriously challenges it, and that would bring the house of cards tumbling down.

Nite_Hawk

I don't know what the DMCA has to do with anything. They aren't using the DMCA to restrict people from making hardware that interacts with the xbox, they are using a proprietary security chip. Perhaps they'd try to use the DMCA against a company that reverse engineered the chip, but Lexmark already tried that and it was thrown out.

This is what MadCatz had to say about it:
"Obviously the best scenario would be not to pay anyone for anything. But as hard as we have looked at that, it’s not gong to happen. The nice thing is it puts everyone on a level playing field. It means we’re not competing with people who aren’t following basic rules of manufacturing and product quality. And it means the console companies have a vested interest in our success.â€￾
http://www.next-gen.biz/index.php?option=com_content&task=view&id=747&Itemid=2
 
I thought MS said people would be able to change out the harddrive for a bigger unit of their own if they wanted to...? Hope they're not backing out on that commitment and forcing people to buy some overpriced peripheral MS harddrive.
 
Guden Oden said:
I thought MS said people would be able to change out the harddrive for a bigger unit of their own if they wanted to...? Hope they're not backing out on that commitment and forcing people to buy some overpriced peripheral MS harddrive.

They never said that AFAIK.
 
Guden Oden said:
I thought MS said people would be able to change out the harddrive for a bigger unit of their own if they wanted to...? Hope they're not backing out on that commitment and forcing people to buy some overpriced peripheral MS harddrive.

No you have to buy one o f thiers . They have a custom case that the hardrive sits in that isn't changeable . You basicly need the hardrive to come with the case .



Anyway this can only help matters. 1) it allows ms to make more money nad perhaps sell the consoles for less and 2) it stops really crappy controllers coming out . We've had a ton of people bring back controllers after a day or two because they stopped working
 
Guden Oden said:
I thought MS said people would be able to change out the harddrive for a bigger unit of their own if they wanted to...? Hope they're not backing out on that commitment and forcing people to buy some overpriced peripheral MS harddrive.

All they said is that upgradeable HDD will be available at some point i the future.

The doesn't mean you can't attach another mass storage device to the usb 2.0 slot and use that though.

I see no reason you couldn't purchase a 200GB external HDD and use that, via usb 2.0, as your expanded HDD.

Problem is you may miss out on some functionality, but that depends on how their operating system handles mass storage devices as compared to the built-in HDD.
 
Are they using a special type of HDD for the 360? I know its 2.5" drives...but if thats the case..why wouldn't you be able to buy a bigger drive (2.5") and use it in the actual slot...unless they have some type of unique pin array in the HDD dock or something...
 
BlueTsunami said:
Are they using a special type of HDD for the 360? I know its 2.5" drives...but if thats the case..why wouldn't you be able to buy a bigger drive (2.5") and use it in the actual slot...unless they have some type of unique pin array in the HDD dock or something...

Well the drive itself is probably a 2.5" SATA drive, but there is no slot to put a replacement drive in.

This is the HDD unit on the 360:
hdd.jpg


When you buy a new drive you replace that entire unit.
 
BlueTsunami said:
Are they using a special type of HDD for the 360? I know its 2.5" drives...but if thats the case..why wouldn't you be able to buy a bigger drive (2.5") and use it in the actual slot...unless they have some type of unique pin array in the HDD dock or something...

lol I think they learnt their lesson abou having off the shelf connections to the HD.

I can mod out an xbox in 15 minutes, with nothing more than 2 Torx screwdrives and a PC to hot-swap the HDD to.
 
jvd said:
Anyway this can only help matters. 1) it allows ms to make more money nad perhaps sell the consoles for less and 2) it stops really crappy controllers coming out . We've had a ton of people bring back controllers after a day or two because they stopped working

Personally I don't care whether or not MS charges royalties for peripherals but I fail to see how this "can only help matters". Unless you are equating "matters" with MS' bottom line.

There is no correlation between MS making money off of Peripherals and then lowering the cost of the console.

WRT Quality Control the article I have states:

Quality Control or Revenue Generation?
The primary argument in favor of such a plan would be that of quality assurance. Every device or product for the 360 would have to be scrutinized by Microsoft. Thus, Microsoft could theoretically exclude all the peripherals that did not live up to a preset standard. A Microsoft representative told Cnet, "We want to make sure the customers are getting the best experience possible."

So yes, it certainly might help with the quality of some peripherals.

There is another detail of Mad Catz' agreement with Microsoft that may be the most telling: Microsoft dictating what peripherals can be made. Mad Catz is only allowed to make arcade sticks, dance pads, flight sticks, gamepads, and steering wheels and only of the tethered (read: not wireless) variety. This means Mad Catz cannot make cheat devices, hard-disc drives, light guns, memory devices or any sort of wireless controller. It's is unknown if any third-party will be granted a license to manufacture these devices.

This move is a calculated risk by Microsoft, one with high rewards and very real risks. While the deal may provide a new stream of revenue never fully tapped by console makers in the past, the licensing agreements may also alienate third-parties and drive them into supporting the PS3 and Revolution with increased vigor.
 
Personally I don't care whether or not MS charges royalties for peripherals but I fail to see how this "can only help matters". Unless you are equating "matters" with MS' bottom line.
they can stop sub par acessorys coming out .

As for them selling the consoles cheaper . They aren't allowing 3rd party acessorys for a year . Which will surely offset the losses they are taking
 
jvd said:
They aren't allowing 3rd party acessorys for a year . Which will surely offset the losses they are taking

Er, where did you get that from? Madcatz has a number of accessories planned for launch

From their website/PR:
Available at the launch of the new game platform, Mad Catz plans to distribute a full range of high quality Xbox 360 peripherals including game controllers, an arcade stick, a dance mat, and a steering wheel. Additional licensed products will be launched to coincide with software releases.

http://phx.corporate-ir.net/phoenix.zhtml?c=69024&p=irol-newsArticle&ID=710883&highlight=
 
Btw...

This probably means no Mouse/Keyboard support unless MS oks it (and so far they dislike it for games)

:(
 
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