Now that the Xbox 360 Video Marketplace has been live for a little over two weeks, I’d like to share a few thoughts. The Video Marketplace provides Xbox 360 owners the ability to download television show and movies — some in high definition. Keep in mind, the November 7th announcement encouraged me to get off the fence and pick up a 360 (at half price). While Microsoft did beat TiVo, Apple, Sony, etc in providing direct downloads to a TV-attached box, these video rentals definitely originate from a first generation download service.

Organization
My first issue is organization: There has got to be a better way to lay out and navigate the video catalog. Right now it’s fairly manageable but as the content selection (theoretically, hopefully) grows it will become unwieldy. In fact, maybe we should talk about cleaning up the 360 dashboard in general. There’s a decent amount of overlap/duplicity and some items aren’t always where or what I’d expect. Generally I find the Dashboard it to be an attractive and speedy interface, but there is always room for improvement. Microsoft can start by reducing or removing the ads, which are a distraction and an eyesore.

Content
My second issue is actually more pressing than the first. While the interface can be overcome, the lack of video selections cannot. (It’s all about the content!) There seem to be a decent amount of television shows, but why anyone would buy them regularly I have no idea. I can see grabbing a show now and then when you forget to record or watch an episode, but routine purchases just don’t compute for me. Those high-tech enough to own an Xbox 360 and use video downloads are likely they have some sort of DVR in the house. Not to mention Microsoft touts the ability of the 360 to act as a media extender for Windows MCE… which of course has DVR capabilities. So my content beef is with the movie selection. I realize the service is only a few weeks old, so I’m not expecting additional studio partners (currently just Paramount and the Warners), but I am expecting additional movies. Since launch, as far as I can tell (and I’ve been checking daily) NO new movies have been added. Perhaps this was a blunder on Microsoft’s part and they should have trickled out several flicks a week (instead of everything at launch) until more content was lined up. Or perhaps their partners don’t have faith in the delivery method yet. Regardless, as a consumer, I want more choices — or at least that illusion. Otherwise, folks will stop checking the Video Marketplace.

Microsoft Points
My third issue is with pricing. My issue isn’t with the cost of a video rental, but rather with Microsoft Points.

High-definition TV shows will be 240 Microsoft Points per episode, and standard-definition TV shows will be 160 Microsoft Points per episode. New release movies in high definition will be 480 Microsoft Points, and standard-definition new release movies will be 320 Microsoft Points each. Classic feature films in high definition will be 360 Microsoft Points, and standard definition will be 240 Microsoft Points.

I can live with Microsoft using virtual money for accounting purposes, but it would be simpler for consumers to match 1 point to 1 cent, rather than the current $1.25 = 100 points. Of course, by utilizing a debit system (with points valued at less than a cent each), Microsoft intends for us to lose track of how much money we’re spending like ATMs in a Vegas casino. Also there’s the small matter of having extra, unspent points dollars that Microsoft collects interest off of or which may never be redeemed. Billing at the time of purchase for the exact dollar amount of a purchase - be it game, avatar, show, or movie - is a preferable, simple and fair system. If they must stick with their points system (which they are), why not give discounts on bulk purchases? This is a business and Microsoft loses money on each hardware console… Their Points give them a leg up in recouping those sunk expenses.

Bandwidth
Downloads requiring 46 hours to complete are out of the question. I don’t think this is typical… perhaps part initial roll-out kinks, part initial early adopter demand. However, there’s no question we need quicker gratification — especially if Microsot intends to compete with real-time VOD streaming from cable companies. They seem to have done a decent job preserving HD audio and video quality while getting file sizes down and downloads seem to be quicker now than at launch. But it’s not enough. And I’m not sure Microsoft alone has the answer. The last mile needs an upgrade, or at least mine does. Typical DSL is fine for web surfing and the like, but to handle Xbox video downloads, VoIP, TiVoCast, iTVN, Movielink, iTunes, Slingbox, etc (yes, I really do have/use all these things) I need a fatter pipe. Therefore I - and other Internet media hogs like me - probably need to upgrade to a higher speed broadband service such as fiber optic or a high-bandwidth cable plan. Will it make a difference or are downloads throttled in some way? One way to find out…

Superman Returns HD
My biggest issue (ha!) is where is Superman Returns in HD? Superman was prominently mentioned in Microsoft’s Video Marketplace press release, yet the DVD is out and the download isn’t. What gives? Honestly, I can’t pin this one on Microsoft. The archaic movie studios are having a hard time with the new reality. Releasing a video download the same date they release a DVD will not impact DVD sales! How do I know? I haven’t bought Superman Returns on DVD. I will wait for the download. Or maybe I’ll pick up the Xbox 360 HD-DVD drive and get it from Netflix. By waiting, they actually lose momentum and stand to make less since more people will Netflix (or visit Blockbuster) to get the video. So when will Superman Returns HD arrive? Movielink has it for sale ($19.99) now via download, and indicates digital rentals will be available 12/28/06. Can I wait that long?

Overall I think Microsoft is off to a good start, though if some of these points can be addressed I think they’ll have a more compelling (and more lucrative) service on their hands. Better hurry, though, Apple’s iTV is hot on their heels… and despite Thomas Hawk’s assumption, I guarantee they’ll provide HD movies in 2007.

A periodic roundup of relevant news…

• Hands on with the Loop motion controlled remote : Gizmodo
• Orb adds mobile YouTube search: PVRWire
• Mods to quiet your (my) Xbox 360: Extreme Tech
• Portable Audiovox XM receiver discovered: Orbitcast
• Sony PSP GPS accessory hits the market: Engadget

A periodic roundup of relevant news…

• PSP 3.01 software update released
  Buy PSone games online via Playstation3, view music animations, and disable UMD auto-start.
  Sony
• PSP Internet Video Guide
  Learn how to use PSP Video 9 to get YouTube and Google Video onto your system.
  DVR Playground
• PSP sales up
  Hardware sales up 280% and software sales up 168% due to Black Friday and PS3 release.
  Game Daily
• Buy PSP music video downloads
  EMI Music UK’s entire music video library will be priced between GBP 1.89 and GBP 2.19 for MemoryStick download.
  Games Industry

While I often live on the bleeding edge of technology, there are occasions when I’m content to wait. As a casual gamer, I didn’t pick up the Xbox 360 last year and I waited to try all three next gen systems before making a purchase. Now that I’ve some experience with the various consoles, I decided on the 360. Many factors led to this choice including price, online offerings, controller comfort, and visual quality (Wii doesn’t make the cut). Sony’s integration of a Blu-ray drive into the PS3 is compelling, but the downloadable high definition movies makes it nearly a wash and Microsoft beats them in the other areas… Not to mention I could actually find an Xbox and for significantly less cash.

So now let me tell you how I’m (theoretically) getting the 360 for half price… Micro Center is running an in-store deal to promote their Gaming Department. Buy an Xbox (Core or Premium) by December 5 and get a $100 rebate by mail. That brings the Premium unit down from $399 to $299. But wait… there’s more! If you get their credit card (and potentially lower your credit score in the process) and make a $399 purchase you’ll receive 13,000 points redeemable for $100 check. For a twenty dollar rebate I wouldn’t bother jumping through these hoops, but $200 makes it worthwhile… assuming it works.

I’m still between projectors, so the 360 will live with the TiVo Series3 and Slingbox Pro attached to a 30″ Panasonic HDTV. My classic Xbox and Moviebeam are headed to ebay (to join my former Gamecube and PS2). I’ve enjoyed playing the online demos of Rainbox Six and Modern Warfare the last two nights, and I’ve loaded up on Points to make my first purchase once Superman Returns HD arrives. If you’re interested in kicking my butt online, my gamertag is Zatz and I look suspiciously like the creepy Burger King.

UPDATE: Turns out Micro Center has extended the $100 rebate dealio through 12/31! That should give you enough time to get to one of their 19 locations.

A periodic roundup of relevant news…

• Beatles and Apple near exclusive iTunes deal: Fortune
• EchoStar retrial on TiVo patents denied: Denver Post
• Will paying for user video pay off: GigaOm
• Xbox movie downloads timed: Gizmodo
• Control BeyondTV with Slingbox: Fresh Arrival
• TiVo Glo Remote available for 8,500 Reward Points: TiVo

One of my goals here in NYC today was to pick up a Wii. I didn’t expect my odds to be very good and they weren’t: Nintendo Store, Best Buy, and Toys R Us are all out of stock. Though, I did see one guy purchase a Wii at the Toys R Us and another wandering with a unit in hand — perhaps these were pre-orders?

At the Nintendo Store I had some hands on time with Excite Truck which turns out to be a horrible game and makes me question my desire for a Wii. The graphics are poor and the game is just boring, though I assume two player mode is more fun.

Those of you who live in town better wake up early tomorrow… Both the Nintendo Store and Toys R Us received Wii shipments and will be selling them at 10AM.

Bonus NYC day tripping pictures after the jump…
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