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    Microsoft: Xbox One's Data Treasure Trove Could Reshape Marketing

    Xbox One's Data Treasure Trove Could Reshape Marketing

    Device Can Work Like a TV That Watches Consumers In Their Living Rooms

    By: Jack Neff
    Published: October 05, 2013

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    Forty-nine days from an Xbox One rollout that could make or break one of Microsoft's most successful brands, the key marketing executive behind the launch outlined how it also could reshape marketing in a speech to the Association of National Advertisers Masters of Marketing Conference in Phoenix Oct. 5.

    Yusuf Mehdi

    Yusuf Mehdi, corporate VP-marketing and strategy for Microsoft, outlined how he expects the new system, which succeeds the eight-year-old Xbox 360 in a neck-and-neck race with Sony's Playstation 4 launch, could affect marketing. Those possibilities include ramping up consumer expectations for production values in advertising thanks to advances in Xbox imaging technology, furthering the "gamification" movement in advertising, and consolidating more attention now diffused among multiple devices for gaming, TV and web browsing onto the big screen. For example, Xbox One will make it easier to port real-time fantasy-football data to the TV screen as people watch NFL games.
    But perhaps the biggest potential impact is one Mr. Mehdi only hinted at -- the possibility of making data from Xbox available for market research.
    Holy grail
    "We are trying to bridge some of the world between online and offline," he said. "That's a little bit of a holy grail in terms of how you understand the consumer in that 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. 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."
    Xbox One can essentially work like TV that watches you, bringing marketers a huge new trove of data about what's going on in living rooms, including, as one marketer put it after the speech, unprecedented information about how people engage with TV advertising.
    "It could have a big impact on pricing," he said, given Xbox One's capacity for seeing whether people are paying attention or how their bodies respond to the ads, said the marketer, who wasn't authorized by his company to speak for attribution.
    Biometric responses
    Given that Xbox 360 has sold more than 78 million units, if even a fraction of likely Xbox One users could be persuaded to share data, the technology could create the world's largest panel for measuring biometric responses to advertising.
    The new generation of Kinect technology in Xbox One can distinguish up to six voices in a room, respond to voice commands, read skeletal movement, muscle force, whether people are looking at or away from the TV and even their heart rates, Mr. Mehdi said. The latter happens as the camera detects slight changes in skin tone related to dilation of a blood vessel in the eyeball that responds to heart rate, Mr. Mehdi said.
    In a feature that was controversial among some users, Microsoft originally said that the Xbox One would have to be connected to the internet and Mircosoft's servers at least once every 24 hours to function. After consumer outcry, Microsoft backed down. It also dropped its original plan to require that Kinect technology always be on for the console to work.

    http://adage.com/article/special-rep...keting/244605/

    In before tinfoil hat comment. Oh, wait.. Sorry, but, I do find this kind of thing disgusting as a gamer. Cancer confirmed.

  2. #2
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    Given that Xbox 360 has sold more than 78 million units, if even a fraction of likely Xbox One users could be persuaded to share data, the technology could create the world's largest panel for measuring biometric responses to advertising.
    if MS want to throw some money my way in exchange for my data. count me in.

  3. #3
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    Lol oh boy...Kinect being mandatory is making a whole lot of sense as of late

    Sent from my SGH-T889 using Tapatalk

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    Quote Originally Posted by YoungMullah88 View Post
    Lol oh boy...Kinect being mandatory is making a whole lot of sense as of late

    Sent from my SGH-T889 using Tapatalk
    It's included in every box, it's not mandatory.

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    Quote Originally Posted by snooper71 View Post
    It's included in every box, it's not mandatory. Sent from my C6506 using Tapatalk now Free
    With an extra $100 tacked onto the price.

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    Quote Originally Posted by mistercrow View Post
    With an extra $100 tacked onto the price.
    That won't stop the initial core gamers. I paid $200 more for my first purchase this gen and got less.

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    Quote Originally Posted by Sub-stance1 View Post
    That won't stop the initial core gamers. I paid $200 more for my first purchase this gen and got less.
    I don't recall the $500 PS3 taking off amongst core gamers.

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    Xbox One can essentially work like TV that watches you, bringing marketers a huge new trove of data about what's going on in living rooms
    They should be forced to write that $#@! on the box, how is that not illegal?
    Last edited by Bitbydeath; 10-06-2013 at 22:32.

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    Quote Originally Posted by Lefein View Post
    I don't recall the $500 PS3 taking off amongst core gamers.
    That's because it didn't have strong launch titles and lacked any desirable features outside of blu ray..

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    I'll opt out of any data submissions. If there isn't a choice to opt out, I'll just return the system.




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    Quote Originally Posted by Yungstar 2006 View Post
    if MS want to throw some money my way in exchange for my data. count me in.
    Wow. I think that might actually the first and closest I've seen you ever get to being critical of MS and the Xbox One. Give me a moment for the shock to pass.

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    Yeah count me out of the data submissions and if it is forced on me then I'll make do with a PS4 only.

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    I will not be fooled into buying something I do not want.
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    sadly this is the future.

    Every time you go on the Internet, make a phone call, send an email, pass a traffic camera or pay a bill, you create data, electronic information. In all, 2.5 quintillion bytes of data are created each day. This massive pile of information from all sources is called "Big Data." It gets stored somewhere, and everyday the pile gets bigger. Government and industry are finding new ways to analyze it. Last week the administration announced an initiative to aid the development of Big Data computing. A panel of experts join guest host Tom Gjelten to discuss the opportunities -- for business, science, medicine, education, and security ... but also the privacy concerns.
    http://www.kdnuggets.com/2012/04/npr...ta-mining.html

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    Quote Originally Posted by Sub-stance1 View Post
    That won't stop the initial core gamers. I paid $200 more for my first purchase this gen and got less.
    That doesn't make what I said any less true. My point still stands. If you want to buy the X1 you will have to pay $100 extra because of the "included" Kinect. #truthfact.

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    man this is disgusting.

    this is not what gaming consoles are about

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    http://kotaku.com/xbox-ones-top-mark...ine-1441807229

    Kotaku is running the story now. To me, it seems like the Microsoft that talks to the gamers through Major Nelson is a different Microsoft than the one that is actually running the show when it comes to XBox One.

    They will tell you anything, and then do whatever they want when they think you're not looking.
    Last edited by Lefein; 10-07-2013 at 11:10.

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    Microsoft: Xbox One's Data Treasure Trove Could Reshape Marketing

    No thanks for me.

    It would be interesting to see how many people will enable this, if they offer freebies for it. Like free live gold or a % discount at the store, for as long as you have big brother on.


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    Quote Originally Posted by Lefein View Post
    http://kotaku.com/xbox-ones-top-mark...ine-1441807229

    Kotaku is running the story now. To me, it seems like the Microsoft that talks to the gamers through Major Nelson is a different Microsoft than the one that is actually running the show when it comes to XBox One.

    They will tell you anything, and then do whatever they want when they think you're not looking.
    MS only "changed" plans to get preorders up, there is a reason they refuse to remove the camera from the box.
    Next year they can hit the spy switch and tell their advertisers there is a camera in every xbox house hold.
    Mark my word that damn thing will spy on you any time its plugged in.


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    Quote Originally Posted by Agriel View Post
    MS only "changed" plans to get preorders up, there is a reason they refuse to remove the camera from the box.
    Next year they can hit the spy switch and tell their advertisers there is a camera in every xbox house hold.
    Mark my word that damn thing will spy on you any time its plugged in.
    I'm not so sure they will go heavy-handed with it. They got popped real hard for trying that, and they know at their current pricepoint, they will not be able to reach the mass market. No, instead, they will market and advertise it showing Kinect being used as much as possible.

    All they need to do is target the demographic they want. This is the end-game for MS. They just wanted some kind of set-top box in peoples living rooms and have wanted to do so since WebTV. They tried and failed at pushing Sony out of the market, but the Wii's success has showed them the way. After the first year or two, core gamers are going to be a complete after-thought. They just need to have price-cuts to reach whatever demographic it was that they planned on targeting originally.

    The "power of the cloud" seems more and more like a reference to a data gathering network by the day. IMHO, the ghost-cars in Forza was more of a sign of things to come that have little to nothing to do with gaming. Which is why I made fun of it so much.

  25. #21
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    Quote Originally Posted by MjW View Post
    No thanks for me.

    It would be interesting to see how many people will enable this, if they offer freebies for it. Like free live gold or a % discount at the store, for as long as you have big brother on.


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    There's only one thing that can be said about this:



    I knew MS wouldn't back out of this kind of issue that was brought up at the start. Sure you get Kinect with it and it's not mandatory to use but honestly if you have that thing would you NOT have it always plugged in? I thought not and this is why MS is still keeping it in the box.

    Those saying that Phones, PCs, and whatever is still Big Brother watching, sure it is but there's one thing that should never ever happen, being spied on via video in the privacy of your own home - that is very different.

    Another thing is that I bet you anything it's not an "opt-in" but an "opt-out" meaning that those that don't know about this (and I bet millions won't) then they will be spied on. It's a typical marketing strategy to get data from those that are non the wiser and unfortunately most people will fit inot that category, we're a small minority that does know about it.

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  28. #23
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    So some are suggesting the Kinect plugged in will make a come back once the user base is large enough to say "hey, we got those sales in now, let's do this"?

    MS setting themselves up to see a lot of secret sauce (or wizard $#@!)!


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  29. #24
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    Quote Originally Posted by Varsh View Post
    There's only one thing that can be said about this:



    I knew MS wouldn't back out of this kind of issue that was brought up at the start. Sure you get Kinect with it and it's not mandatory to use but honestly if you have that thing would you NOT have it always plugged in? I thought not and this is why MS is still keeping it in the box.

    Those saying that Phones, PCs, and whatever is still Big Brother watching, sure it is but there's one thing that should never ever happen, being spied on via video in the privacy of your own home - that is very different.

    Another thing is that I bet you anything it's not an "opt-in" but an "opt-out" meaning that those that don't know about this (and I bet millions won't) then they will be spied on. It's a typical marketing strategy to get data from those that are non the wiser and unfortunately most people will fit inot that category, we're a small minority that does know about it.
    Yeah, it is very different indeed. I hope the politics in this country change and the "big data" initiative goes away, but I'm not holding my breath. One would think MS would be very explicit about this, meaning you have to specifically agree to allow Kinect monitor your room. Advertisers having access to my personal household is a deal-breaker. I've been saying for a while that price is the only thing holding me back, but this crap......I don't know.

    Someone remind me.....I know you can turn Kinect off, but didn't MS say it still has to be plugged in? Thought I saw that before but didn't twice about it....until now.

    Edit: Nevermind. Found it Doesn't have to be plugged in. At least there is that. Still not fond of MS's focus this gen. So damn muddled.
    Last edited by Christopher; 10-07-2013 at 12:13.
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  30. #25
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    Quote Originally Posted by snooper71 View Post
    So some are suggesting the Kinect plugged in will make a come back once the user base is large enough to say "hey, we got those sales in now, let's do this"?

    MS setting themselves up to see a lot of secret sauce (or wizard $#@!)!
    If I buy an XB1 I will only plug in Kintect to fap, I figure if they want to watch me, might as well give them something to watch.


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