Netflix on Xbox

Yesterday I activated my Netflix account on Xbox and I am really impressed with how good the experience was. The movie started streamed right way and played nearly flawlessly, considering it was streaming the one hick up was totally excusable. Although, the whole Netflix library is not online there is a healthy selection and about half of my queue was available for instant view. This will definitely get me to use my Netflix account more often.

Netflix has a much better strategy than their main competitor Blockbuster as they are trying to go with flawed model of providing a set top box for movie downloads. Many have tried this model and none have been successful mainly because no one wants another box with just one purpose sitting next to their TV.

Zune Phone

In the past week I have read several articles here, here, and here about Microsoft creating a Zune Phone. I think it will be yet another mistake for Microsoft. I know they have more money than god but they really need to learn a valuable lesson from the Zune and not dump more money into a product no one really wants. 

If they do develop a Zune Phone or a non windows mobile phone they are clearly focusing on the Xbox chapter of their history lesson rather than the Zune chapter. The Xbox 360 was unique in that it was the first next gen console to enter the market the only competitor is Sony with the PS3 and they didn't come into the market for a full year after the 360 launch (Nintendo Wii is not really a next gen console although it was a smashing success Nintendo was going after a different market than the 360). The game console market is also unique in that gamers are a very engaged market segment and are willing to provide a ton of valuable feedback to help improve the product and clearly the Xbox development team used this info to its fullest extent. 

The Zune and now the Zune Phone have a much bigger barrier in front of them. iPhone and now Google's android have established a market and whatever MS is going to try to do with a Zune Phone will seem like a me too product. The market is also broader than the gaming market and we have seen how MS does when they try to provide a product that is all things to everybody (where is my freaking WOW). They don't seem to be giving up on the Zune so I guess when you have buckets of cash laying around you can afford to live with 4 % of market share and I am sure the barriers with Zune Phone will be much higher. I suppose MS could create a MVNO and push the Zune Phone out on their own without being attached to a specific carrier. But even this has been an impossible business model if Helio, ESPN, Amp'd, and Disney couldn't create a market I don't think the Zune Brand will be able to either.

Xbox 360 NXE

I downloaded the update to the Xbox 360, called New Xbox Experience, last night and have to say I am impressed on several fronts:

1. The speed of such a major download was great.  Because the Xbox run most of the software on ROM the updates (even major ones like this) are not huge files.
2. The flow of the software is great, it is easy to navigate mostly through text based menus with large visual icons.
3. The avatars are interesting, hopefully they develop free games that utilize the avatars otherwise they are pretty useless.  The reason people loved the Wii mii avatars is because they get used as part of the sports games. I can't imagine I would customize my avatar anymore than the bare boned options I already selected.  
4. Netflix partnership looks interesting, I think you have to have a streaming enabled account (min 2 per month netflix subscription) and Live Gold in order to use this feature but so far from what I have heard it works really great.  I have not tested it out myself as I have 2 discs from netflix I need to return, but this is definitely a feature I will use.

I will play around with it a lot more and give updates as I get a better handle on what are the true strong points and weak points of NXE.