Netflix on PS3 -or- The End of My Gold Live Account

ps3vsxboxnetflixYesterday I was prepared to give in to my once-a-year habit. Yes, every 12 months I feel that familiar itch. Work seems to stretch on longer; my favorite foods taste bland. Life is agony, and the only way I know how to set the world right is with a fix; with renewing my Xbox Live Gold Membership. Yes, the days feel complete again knowing that I have ensured another year of all the great features Xbox Live provides.

Though, as I slid my credit card from its well-worn slot in my wallet, once again ready to drop $50 like it were, in fact, hot, I happened upon a news story. I rubbed my eyes, convinced that they played jest at my expense, yet the text reemerged just the same: the PS3 was going to begin streaming Netflix movies. I placed the card upon my desk, and began to ponder these events.

You see, a few months ago, my Xbox received, as most growing 360 consoles do at that age, its red rings. I was outraged at this, saying things like “I am outraged!” and “I’ll never buy an Xbox product again!” Of course, about a month later, I wound up replacing the traitorous machine with an Elite; the hipper, less red ring-y brother of my old Pro. When confronted by friends and family about my change of heart, I cited two reasons for replacing the broken console: my pre-existing library of games and the ability to stream Netflix.

Yet here I am, on the precipice of another payment to Microsoft on behalf of the service they provide, wondering what exactly it is I’m paying for anymore. Even a year ago, it would have been quite easy to sing the praises of the Gold Membership, as it was far and away superior to the PS3’s free alternative. However, in the time since Netflix began streaming on the 360, the Xbox has stood virtually motionless, adding no perceivable value to their premium service. Meanwhile, the PS3 has been playing catch up. The “XrossMediaBar” has been thankfully available in-game for sometime now, and soon cross-game chat should be making an appearance as well. Consider this with the ability to stream Netflix for free, and one has to wonder what exactly it is we are told we are paying for with the Gold Membership.

Here lies the underlying problem. When Xbox Live launched for the original black box, it was the only online console infrastructure of its kind. So in 2002, Microsoft was in the position to charge anything they wanted. Today, we are still billed for this service because we remain willing to pay for it. This strategy has worked for a while, but it is losing steam now.

How will Xbox Live begin to lose its grip on the forefront of online gaming? First, you have to look at consumers purchasing their first Hi-Def console. With the 360 and PS3 both at even playing ground in terms of price, it’s these types of auxiliary features that will tip the scales when at the register. The argument for the last year has been that the PlayStation 3 has Blu-ray, but the 360 has Netflix. Well that argument is now moot, with the PS3 having both options available, and with no extra charge. Couple this with free online play in general, and the PS3 clearly gains an edge over its competition.

Secondly, one must also observe how this harms existing customers. Owners of the Xbox exclusively, try as they might, can’t ignore the fact that Sony is providing all of this content to its customers free of charge, while Microsoft continues its archaic tradition of making you pay to simply play with your friends. This hurts the brand loyalty afforded to the 360, and will certainly carry repercussions throughout the end of this current generation and, more importantly, into the next.

As for me, the credit card has been placed back into the wallet and that familiar itch has all but faded away.  While I will continue to enjoy 360 games offline, I can say with no hesitation that the entirety of my online experience has now been moved to the PS3. Until Microsoft adds more value to their Gold Membership or, better yet, nixes the pay system all together, I am going to voice my opinion of their business practices with not only this post, but with my money as well.

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9 Comments

  1. Rob Rich Rob Rich says:

    I agree. Netflix was really the only reason I truly missed my Gold Account, and now that’s gone. Once I figure out how to get my stupid Blutooth headset connected to my PS3 it’ll all be over.

  2. Matt Matt says:

    This was actually the kicker for me as well. I haven’t touched my 360 since I got my PS3 except for Netflix. At the Netflix announcement, I decided not to renew my Gold membership. I’m tired of being nickled and dimed at every turn.

  3. “We believe we offer an experience today that is a generation ahead of what others are offering. For a little over $4 a month Xbox LIVE Gold membership is hands-down the best value in home entertainment, and gives you exclusive access multi-player gaming and early demos as well as Facebook, Twitter, Netflix, Last.fm, 1 vs 100 and more.”

    That’s what Microsoft had to to say in response to being asked about Netflix going free on 360. A generation ahead? My PS3, computer, DSi, and phone can do most if not all of those things (excluding 1 vs 100 of course) for no extra charge. This goes far beyond living with their head in the sand; Microsoft clearly dwells some 50 feet below the surface of the Sahara desert.

  4. Rob Thomas Rob Thomas says:

    I feel like the odd man out here in that I really don’t like PS3′s online setup at all, preferring 360′s by a large margin. I still enjoy my PS3, sure, but there’s just so much there that rubs me the wrong way.

    As for the PS3 being able to do everything else you mentioned, Scott – I think you’re also not taking into account that some people see an advantage in having all of those functions consolidated into one device, rather than spread across the four you mention.

    I’m in no way poo-pooing your decision, other than the fact that it means I lose another potential online partner, seeing as 360 is my go-to for online rather than PS3 (with the one exception of fighting games online, where I do favor Sony). I wish that Xbox would drop (or eliminate altogether) the price of Live too, but, for the time being at least, I’m still satisfied enough with the service to keep ponying up my cash.

    Regardless of all this, I still thought this was an excellent piece (as your stuff always in) and I’m glad you put your thoughts out there.

  5. Raymond Morse Raymond says:

    Some of us have been streaming Netflix, Hulu, ESPN, etc. for free to our PS3′s for ages now. I have sung the praises of PlayOn to anyone that will listen. It’s the best 10 dollars I ever spent. Now I am able to just be running a simple program on my PC stream everything I want to my PS3. Sure it cost me money to start but a one time fee is great compared to the way Microsoft has gone about it.

  6. Rob Rich Rob Rich says:

    Oh I agree, PSN is terrible when it comes to the User Interface and various other peer interactions. But as archaic as some of it feels, it’s still functional. I mean I know it’s lame compared to XBL, but it still gets the job done, more or less.

    And since I don’t play a lot of multiplayer games anyway, it’s an easy choice for me to make. ;)

  7. Tristessa Tristessa says:

    I love my PS3 but hate PSN to bits. The UI is terrible. Downloads are much slower for me than through XBL. There are little to no demos, resulting in me not buying much. Overall, I just end up not checking out their stuff as much as I do with XBL. Maybe if they had a small membership fee, they could end up having more free content.

    I know Sony liked to say that they didn’t have demos because it didn’t prove effective in translating those downloads to actual sales, but it still makes it easier to shop for DLC content if I have that option. A little while back there was the question of the lack of demos actually being a cost thing, as Sony was charging the publisher for the downloads (.16 cents per GB). While the consumer isn’t being charged a fee, the publisher is getting hit with it. And unless they’ve changed that policy in the past 6 months, this might still be the real reason why nobody seems to want to put a demo up.

    Getting Netflix is a big plus for Sony. But they still have a way to go before the service matches what I get out of XBL Gold. That’s why I have no problem paying into what they’re offering. $4.00 a month is a small price for me to shell out for the stability and ease of use I find with it.

  8. Rob Thomas Rob Thomas says:

    You just articulated a lot of what I didn’t say above. Like, down to the point.

    In fact, I may just copy your comment, post it under my name and then delete yours >.>

    Heh. Kidding of course, but I agree wholeheartedly.

  9. Rob Rich Rob Rich says:

    Even if they still won’t do demos, you’d think they could at least have video clips available for all the games on PSN (instead of one in every fifteen), you know?

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Scott Thompson

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Just a guy who likes vegan food, fast music, and video games.