Microsoft Defends Xbox One 'Digital is Better'

Microsoft Xbox Chief Marketing and Strategy Officer Yusuf Mehdi said he is not surprised the way people have reacted to Microsoft's moves with the Xbox one: "kind of as we expected"...

"This is a big change, consumers don't always love change, and there's a lot of education we have to provide to make sure that people understand. We're trying to do something pretty big in terms of moving the industry forward for console gaming into the digital world. We believe the digital world is the future, and we believe digital is better.

In the future, you can imagine the capability to have different licensing models, different ways that people have to access games. This all gets unlocked because of digital. As you go into a digital world, what's happening is publishers are choosing to have different business models and consumers are saying 'Hey, if I can't resell the title, provide me a different way to get value to get into your game.' And we think the market will be efficient in finding good models that work for consumers."

Within that, we've tried to optimize, and I think we've found a great balance across all of those dimensions," Mehdi said. "But there are tradeoffs. We do want to support everyone in that system, beginning with the consumer. But we want publishers to get paid for the great IP they work on. We want retailers to be able to drive and sell our products and make a profit. So we are trying to balance across all those."

Mehdi also said that the Xbox One is worth $100 more than the PS4 because "the extra money spent would be worthwhile to consumers looking for the best value in their gaming system."

"We want to have our offering be differentiated relative to all others," he said. "It has value that is in so many areas that is not in competing systems ... . That is a thing that each consumer will choose... and ultimately consumers will decide which is better. It's a big market."