ESA Weighs In On Possible Xbox 360 Ban

Andy Chalk

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Nov 12, 2002
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ESA Weighs In On Possible Xbox 360 Ban


The Entertainment Software Association is urging against a ban of the Xbox 360 in the U.S.

In May, Judge David Shaw recommended to the International Trade Commission that the importation and sale of the Xbox 360 be up in the air [http://www.escapistmagazine.com/news/view/117394-Judge-Recommends-Banning-Xbox-Imports-to-the-US] due to the ongoing legal action in the U.S. And while a flat-out ban on the 360 seems unthinkable, it could theoretically happen, although many tech industry heavyweights, including HP, Nokia, the Business Software Alliance and even the Federal Trade Commission are urging the ITC to "decline to issue an order of exclusion" against the console.

Also against the idea, entirely unsurprisingly, is the Entertainment Software Association [http://www.theesa.com/], the trade association that represents "the business and public affairs needs of companies that publish computer and video games." Its membership "includes most of the major U.S. game publishers and the major video game console makers," the ESA said in a statement, which leaves it "uniquely positioned to describe the impact on the public interest of an exclusion order affecting the Xbox."

"The video game industry is a significant contributor to the U.S. economy and job growth, and reaches American consumers of all walks of life. According to a 2011 NPD industry sales report, nearly three-quarters of all American households play games, and consumers spent nearly $25 billion on video games, hardware, and accessories in 2011," the ESA statement said. "An exclusion order banning the importation of Xbox gaming consoles into the U.S. would harm not only Microsoft, but a variety of other parties across the gaming ecosystem, including most importantly consumers and game publishers."

While an import ban would cause harm to game developers, publishers, consumers and of course Microsoft, Motorola Mobility "would suffer no equivalent harm" if the ITC declines to take action, the ESA added, and "any harm MMI would suffer can be remedied financially."

Despite the judge's recommendation, it's considered very unlikely that the ITC will impose a ban against the Xbox 360. As patent expert Florian Mueller pointed out in May, ITC judges routinely recommend orders of exclusion if they determine that a patent infringement has taken place, and those recommendations are "very frequently not adopted" by the commission that heads the ITC. It's far more likely that a licensing agreement on the technology in question will be imposed on the two companies instead, thus eliminating the infringement.

Sources: Foss Patents [http://www.gamesindustry.biz/articles/2012-06-11-esa-enters-debate-on-public-interest-ban-on-xbox]


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Epona

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If it were to happen it wouldn't affect multiplatform games and consumers could just play those games on the PS3 and/or WiiU when it releases.
 

RvLeshrac

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DVS BSTrD said:
I think I speak for all Xbox owners when I say imposing a Licensing Agreement has a MUCH better ring to it.
Well played. Except for the part where it isn't fucking funny, since it could result in the loss of hundreds of thousands of jobs in the US, and millions of additional jobs world-wide.
 

Alchemist08

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I guess where I am somewhat still confused on this, is the fact that microsoft infringed upon another companies patent. If a smaller company had done the reverse, Microsoft would have reamed them, no questions asked. Yet everyone is rushing to Microsofts defense now? Maybe I missed something, but my opinion right now is screw them, no favoritism just because the company is large.
 

DeepComet5581

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While the obvious shanking of the Videogames Industry and Worldwide Jobs market is nothing to get over-excited about, I would quite like to see this happen just to see the shitstorm that will result from all the beady-necked teenagers who will have to actually... GO OUTSIDE to entertain themselves.

Good Lord. These are the End Days.
 

Detective Prince

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I can't see it happening and while I am
A) British
B) Only use my PS3

I really hope it doesn't because it would be such a hit to the US economy and to the gaming community as a whole. Could you imagine people smuggling 360s into the country?
 

Epona

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Alchemist08 said:
I guess where I am somewhat still confused on this, is the fact that microsoft infringed upon another companies patent. If a smaller company had done the reverse, Microsoft would have reamed them, no questions asked. Yet everyone is rushing to Microsofts defense now? Maybe I missed something, but my opinion right now is screw them, no favoritism just because the company is large.
Also people are acting like the 360 does things that the PS3 can't do. If the 360 were banned tomorrow, the PS3 would pick up the slack.
 

Richardplex

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Crono1973 said:
If it were to happen it wouldn't affect multiplatform games and consumers could just play those games on the PS3 and/or WiiU when it releases.
Except you know, consumers would have to pay to buy a PS3/WiiU/Gaming PC if they don't have one, and have to rebuy all their xbox games on a new console. Not an owner of an X-box myself, but pretty sure that would be a heavy cost to xbox owners.

Edit: People have pointed out it's the selling of xboxes not the owning of them, so future readers no longer need to point out my derp.
 

Epona

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Richardplex said:
Crono1973 said:
If it were to happen it wouldn't affect multiplatform games and consumers could just play those games on the PS3 and/or WiiU when it releases.
Except you know, consumers would have to pay to buy a PS3/WiiU/Gaming PC if they don't have one, and have to rebuy all their xbox games on a new console. Not an owner of an X-box myself, but pretty sure that would be a heavy cost to xbox owners.


They could just keep their 360 and their existing games. They could buy a PS3/WiiU/Gaming PC and just get new games on it. Their old games would still play just fine on the 360.

Also, they could trade in their 360 and the games and use that money to buy a PS3/WiiU/PC.
 

Whoracle

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Richardplex said:
Except you know, consumers would have to pay to buy a PS3/WiiU/Gaming PC if they don't have one, and have to rebuy all their xbox games on a new console. Not an owner of an X-box myself, but pretty sure that would be a heavy cost to xbox owners.
Or they could, you know, just play the 360 they already have. It's a ban on sales. The police won't come knocking down the doors of 360 players anywhere.

Edit: Damn you, ninjas!
 

mysecondlife

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If Microsoft really infringed on Motorola's stuff, no sympathy there. Ban sale of xbox and sort things out fast as possible so things can go back to normal.
Detective Prince said:
I can't see it happening and while I am
A) British
B) Only use my PS3

I really hope it doesn't because it would be such a hit to the US economy and to the gaming community as a whole. Could you imagine people smuggling 360s into the country?
I guess drug cartels will have to find other means of hiding cocaine in then.
 

Richardplex

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Crono1973 said:
Richardplex said:
Crono1973 said:
If it were to happen it wouldn't affect multiplatform games and consumers could just play those games on the PS3 and/or WiiU when it releases.
Except you know, consumers would have to pay to buy a PS3/WiiU/Gaming PC if they don't have one, and have to rebuy all their xbox games on a new console. Not an owner of an X-box myself, but pretty sure that would be a heavy cost to xbox owners.


They could just keep their 360 and their existing games. They could buy a PS3/WiiU/Gaming PC and just get new games on it. Their old games would still play just fine on the 360.

Also, they could trade in their 360 and the games and use that money to buy a PS3/WiiU/PC.
Whoracle said:
Richardplex said:
Except you know, consumers would have to pay to buy a PS3/WiiU/Gaming PC if they don't have one, and have to rebuy all their xbox games on a new console. Not an owner of an X-box myself, but pretty sure that would be a heavy cost to xbox owners.
Or they could, you know, just play the 360 they already have. It's a ban on sales. The police won't come knocking down the doors of 360 players anywhere.

Edit: Damn you, ninjas!
..Or they could do that. Sorry, that was a very derpy moment of me. Still, if their Xbox breaks they're screwed.
 

Whoracle

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Richardplex said:
[...] Still, if their Xbox breaks they're screwed.
Well, if it breaks and they'd get a replacement for free, yes, then they're (probably*) screwed.
If it breaks outside the service period, they'd have to shell out money for a new console either way. Although the part about the games would suck then.

*Depending on the exact wording of the sentence, only actual SALES of 360s would be banned, at least from what i understand. This means if the sale makes Microsoft money, they can't do it because they use unlicensed property of Motorola. I figure this _may_ not apply to replacement consoles, since a) this would lead to a breach of (service) contract forced upon Microsoft by law, and b) since replacement console _cost_ money, I'd figure they might be allowed to replace consoles. At least that's what I'd do if I were the judge.
 

gigastar

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RvLeshrac said:
DVS BSTrD said:
I think I speak for all Xbox owners when I say imposing a Licensing Agreement has a MUCH better ring to it.
Well played. Except for the part where it isn't fucking funny, since it could result in the loss of hundreds of thousands of jobs in the US, and millions of additional jobs world-wide.
I fail to see the source of that exaggeration, care to expand a little bit please?
 

Baldr

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mysecondlife said:
If Microsoft really infringed on Motorola's stuff, no sympathy there. Ban sale of xbox and sort things out fast as possible so things can go back to normal.

It not that simple. Microsoft was paying Motorola for the H.264/MPEG-4 technology patent per device. Then Google bought Motorola and significantly increased the price they wanted per device just from Microsoft. Microsoft thought this was unfair and wanted negotiate with Google to bring it down to what other are paying. Google refused to negotiate and Microsoft leaving it no option to either replace the technology or remove it, didn't pay. The case went straight to court.
 

LostintheWick

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Crono1973 said:
Alchemist08 said:
I guess where I am somewhat still confused on this, is the fact that microsoft infringed upon another companies patent. If a smaller company had done the reverse, Microsoft would have reamed them, no questions asked. Yet everyone is rushing to Microsofts defense now? Maybe I missed something, but my opinion right now is screw them, no favoritism just because the company is large.
Also people are acting like the 360 does things that the PS3 can't do. If the 360 were banned tomorrow, the PS3 would pick up the slack.
I doubt that. It's a nice sentiment, but unrealistic. And I don't think these people are defending Microsoft, they are defending all the folks and industry who depend on the infrastructure that has been built up around the existence of the xbox and Live. Any one with some experience in the real world of capitalism can see how stupid a ban would be.

With that being said, Microsoft needs to be the one to pay up, not the people who depend on them. Another solution CAN be found if a little brain power is exercised.
 

Epona

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LostintheWick said:
Crono1973 said:
Alchemist08 said:
I guess where I am somewhat still confused on this, is the fact that microsoft infringed upon another companies patent. If a smaller company had done the reverse, Microsoft would have reamed them, no questions asked. Yet everyone is rushing to Microsofts defense now? Maybe I missed something, but my opinion right now is screw them, no favoritism just because the company is large.
Also people are acting like the 360 does things that the PS3 can't do. If the 360 were banned tomorrow, the PS3 would pick up the slack.
I doubt that. It's a nice sentiment, but unrealistic. And I don't think these people are defending Microsoft, they are defending all the folks and industry who depend on the infrastructure that has been built up around the existence of the xbox and Live. Any one with some experience in the real world of capitalism can see how stupid a ban would be.

With that being said, Microsoft needs to be the one to pay up, not the people who depend on them. Another solution CAN be found if a little brain power is exercised.
If Microsoft pays up, the cost gets passed onto consumers anyway. Live is not worth keeping so if that is lost, so be it. It is the only P2P paid gaming service out there, it is the anomaly.