Now that the major players have shown all their cards in the console wars, we know of two features of Microsoft's (NASDAQ: MSFT ) Xbox One that set it apart from competitors -- and not in a good way. The new Xbox is more expensive than either Sony's or Nintendo's systems, but that can be excused considering Microsoft decided to include its Kinect motion-sensing camera this time around. One thing that many consumers might not accept, though, is a new batch of restrictive digital rights policies that threaten to make things like loaning games to friends or playing with spotty access to the Internet much more complicated.
In the video below, Fool contributor Demitrios Kalogeropoulos argues that Microsoft has more to lose than just dollars and cents from a gamer revolt. Angry SimCity fans turned on Electronic Arts (NASDAQ: EA ) earlier this year for some of the same reasons, helping to get that company named "Worst in America" in an online poll at Consumerist.com. And Microsoft should have been taking notes, Demitrios says.
Mr. Softy is right that the industry will eventually go all-digital. But that moment isn't here yet, so Microsoft needs to address gamers' concerns about physical discs before it's too late.
It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a special premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.