Does Microsoft Have a Chance in the Family Market?

Xbox 360 is a success with what you traditionally think of as gamers; Halo 3 was proof positive of that on its own. 3.3 million people can’t be wrong. But Nintendo continues to rack in the cash thanks to its appeal to non-gamers and families, something Microsoft really hasn’t catered to with the exception of Viva Piñata, which – while a fantastic game – didn’t go over well with the public. Hence, the Xbox 360 Arcade system, which was officially announced just yesterday. Took ‘em long enough.

“From the very beginning when we launched Xbox 360, the first two years were very much about winning the core consumer,” said Microsoft’s Aaron Greenberg. “We think we’ve done a great job with that with things like Gears of War, Halo 3 and what we’ve done with Xbox Live.”

“Now, as we enter this holiday we feel like the timing is right to really focus and turn the spotlight on our family content and yeah, we feel great.”

The Xbox 360 Arcade is being marketed as the system for families to pick up this holiday season. It comes packed in with five Xbox Live Arcade games – Pac-Man: Championship Edition, Luxor 2, Uno, Boom Boom Rocket, and Feeding Frenzy – none of which feature any violence, with the exception of cannibalistic acts on the part of the fish in Feeding Frenzy.

But does the Xbox 360 even stand a chance in this portion of the market?

Well, that all depends on what your definition of “stand a chance” is. If that means to simply be successful, then yes, I do believe Microsoft has a shot at appealing to this market. It’s clear that there’s plenty of content that can appeal to the youngsters, and while there is the hurdle of being a controller-oriented console (as opposed to the Wii, which is widely understood to be more accessible by the public), controllers like the Big Bumper Pad, Rock Band/Guitar Hero III instruments and the racing wheel can help to deter that perception. Then again, the pricing on the latter two of those will likely negate the positives they bring in this situation.

On the other hand, if you believe “stand a chance” means more than simply having success, and it means going toe-to-toe and challenging the top dog for its crown, then no, I don’t think Microsoft has any real chance. (The DS isn’t included in this conversation because it’s not something that would really bring the whole family together in the way a movie or a game on a television would.) Regardless of what your viewpoint on the Wii is – and there certainly are radically different opinions of it out there, most of which I can understand – it’s undeniable that the public is in love with it. It very well could be defunct in less than two years, but people don’t know or care when they’re staring at one and thinking about the ideal situations where the whole family gathers around, smiling and laughing, to have fun with one another and play some games. (This is also what I refer to as Commercial Land.) It’s irresistible.

But the Xbox 360 does stand a chance of making some noise in this market because of the appeal it potentially could have on two levels – the family friendly stuff, and then everything else the system brings for someone older in the family.

Of course, the perception that the 360 is too complicated needs to be broken. And it certainly can be, and while I doubt Scene It? and its Big Button pad alone will do that, it’s these sorts of moves that will certainly help.

Faced with a $30 higher price tag on the system itself, and the inability to find a Wii anywhere (which is what will happen), ask yourself if you think a parent would hesitate. Assuming Microsoft can flood people’s minds with all of these “Yay we’re a happy family playing with our Xbox 360!!” types of thoughts – they proved they could do it with Halo – then there’s no reason the Xbox 360 could succeed in that market.

It’s nothing a $10 million marketing campaign couldn’t fix.