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Microsoft Corporation (MSFT) May Not Be Smart, but It’s Wise

Microsoft Corporation (NASDAQ:MSFT) wasn’t being very smart when it told gamers that the new Xbox One would have to connect to the Internet every 24 hours. The company also acted unintelligently when it said that disc games could only be sold once. And it further lacked insight when it said there would be restrictions on lending and sharing games with friends.

But yesterday, the company proved that making a few dumb decisions doesn’t mean you still can’t make wise moves – and it’s reversed the previous Xbox One restrictions.

Microsoft Corporation (MSFT)

In a blog post entitled “Your Feedback Matters – Update on Xbox One,” Don Mattrick, president of interactive entertainment business at Microsoft Corporation (NASDAQ:MSFT) said, “We have listened and we have heard loud and clear from your feedback that you want the best of both worlds.” Microsoft, which looked liked it was killing the gaming community it helped to create, will now offer the same game-sharing features as the Xbox 360.

To be clear on its intent, Microsoft Corporation (NASDAQ:MSFT)’s post included these three phrases to make sure gamers know what the reversal means:

  • “You can play, share, lend, and resell your games exactly as you do today on Xbox 360.”
  • “You can take your Xbox One anywhere you want and play your games, just like on Xbox 360.”
  • “There will be no limitations to using and sharing games, it will work just as it does today on Xbox 360.”

Just like the Xbox 360 – music to most gamers’ ears.

Luckily for Microsoft Corporation (NASDAQ:MSFT), the company came to its senses and did the wise thing before it started selling the Xbox One. The company has been the top-selling console-maker every month for over two years. The Xbox has been an innovative flare for the Redmond company and, let’s face it, the company isn’t exactly heralded as the most cutting edge tech company at the moment.

Microsoft Corporation (NASDAQ:MSFT) investors should be happy that the company was wise enough to listen to a core customer base and give them exactly what they want. Maybe the Xbox One would have sold a lot of units without the changes, but it’s likely to sell more now, because Microsoft listened. Investors need to see how the gaming community reacts to the changes and, eventually, if those changes translate into Xbox One sales once the product launches.

Maybe Microsoft Corporation (NASDAQ:MSFT) will learn an even bigger lesson from the Xbox fiasco when it makes updates to its Windows 8 platform later this year: Making bold changes to technology is one thing, but making bold changes that people actually want is quite another.

While most of the gaming community’s concerns over the Xbox One have been quelled, Microsoft Corporation (NASDAQ:MSFT) is still struggling to find its way in mobile, and its latest Windows OS has been highly criticized. So continuing its history of strong demand for Xboxes would be a welcome sight.

The article Microsoft May Not Be Smart, but It’s Wise originally appeared on

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft Corporation (NASDAQ:MSFT).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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