As if the Windows 8 flop didn’t do enough to make Microsoft Corporation (NASDAQ:MSFT) look user-unfriendly, the firm is now setting limits on what people can and can’t do with games on its upcoming Xbox One console.
Restrictions on users
Originally, gamers thought Microsoft would outright charge users to play pre-owned games. Microsoft Corporation (NASDAQ:MSFT) later clarified the company would allow games to be traded in at “participating retailers,” but nowhere else. Gamers are also only allowed to pass on their games to friends once. This restricts users to play by Microsoft’s rules, even as the company looks to lure customers from Sony Corporation (ADR) (NYSE:SNE) amid the run-up to the release of Sony’s Playstation 4.
The move is clearly an attempt by Microsoft to increase revenue from the Xbox and Xbox-related products. But in modern business, where customers have many options when buying a product, Microsoft isn’t doing itself any favors. In fact, the “big-brother” move could send users to the Sony Playstation. Microsoft Corporation (NASDAQ:MSFT) even set a limit to the amount of time two people must be friends before they are able to pass on their game — this is no joke. According to BBC News, Microsoft said in a statement, “There are two requirements: you can only give [games] to people who have been on your friends list for at least 30 days and each game can only be given once.”
Could the Xbox One lose to the Playstation 4?
When a company sets out unreasonable limits on its customers, those loyal to the company will lose faith, and those who would be new to the Xbox could easily change their minds and buy the Playstation 4. With both Microsoft Corporation (NASDAQ:MSFT) and Sony expected to release new gaming consoles before the end of the year, Microsoft should try to win over customers, not limit their activities. The Xbox One and Playstation 4 will likely be released around the same time, to prevent one company from taking all the customers looking for the next best gaming system before the other firm has released its console.
With Sony already telling potential clients that the new console will likely sell for under $400, it already looks clear that one company is set to work with its clients and the other, well, enough said.
Apple’s public relations debacle
Microsoft’s miserable public relations is reminiscent of Apple Inc. (NASDAQ:AAPL)‘s USB cable debacle. Many customers were outraged when discovering their iPhone cables weren’t compatible with the iPad. The move likely increased sales of the power cords, but also decreased loyalty to the company. It would only make sense that the cables on each Apple device would work interchangeably. While Apple has a stranglehold on the tablet market, making user unfriendly products isn’t only bad press that can hammer down shares, it is also bad for building loyalty.
With customer loyalty such a major part of a firm’s business, companies such as Microsoft Corporation (NASDAQ:MSFT) and Apple should be as user friendly as possible. At least Sony has stayed away from negative headlines over the years. Now, if Apple and Microsoft continue to make it difficult for customers to use their products, their shares could drop.
Phillip Woolgar has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft
The article Tech Giant Microsoft Looking User-Unfriendly originally appeared on Fool.com.
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