So this was sent to me via email by a friend. I had a good laugh on some of the logos and wanted to pass them along. Brands for the new economy. The sad part is some of the logos ring very close to reality.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Great video find from Tom K. If you live in the midwest or northeast you probably realize how cold its been of late, but in case you didn’t know check out this video. -20 degrees meet a pot of hot boiling water…..pretty cool.

So I finally was able to close the loop on the next generation gaming consoles by receiving the XBox 360 as an X-mas gift this past holidays. Already the owner of both the Wii and the PlayStation 3, I’m now the owner of all 3 next generation gaming consoles on the market today.

So with that ownership, I’m able to give some early observations on the different console systems especially between the PS3 and the XBox 360. Currently the market leader is the Wii (in terms of global sales), and while I think Nintendo has done a great job with this console, I do consider it totally different from PS3 and the XBox which are more of the traditional hi-tech gaming systems. And with that, I feel the PS3 and XBox are more close to being competitors with each other then the Wii. I think Nintendo really expanded the market for gamers, which I label the ‘casual’ or ‘family’ gamers - people who wouldn’t play the games on the XBox or PS3 but was attracted to the game controllers and the games the Wii sells (ie Wii Sports, Wii Fit, etc). The XBox and the PS3 usually sells to the same sort of gamer - high end graphics, realistic gameplay, networked gameplay with others, and blockbuster hits.

So with that my first post on the next gen consoles is going to discuss my thoughts on the XBox vs the PS3 in terms of the 3 traits each gaming console is broken down to - hardware, software and the games. Since I just got the XBox, I can’t really talk about the games yet but definitely can make some observations on the hardware and software.

I brought the PS3 when it first came out 2 years ago. As an early buyer of the system I knew I would suffer from a crappy game library which all game consoles go thru when they first come out. It takes a year or so for the game developers to get familiar with the new system and start selling games that work well on the new systems. As the systems like the PS3 and XBox get more complex, it takes longer for developers to get up to speed to build those games. I was very interested in the Blu-Ray drive that all PS3 consoles come standard with and also to play with its new operating system. Two years later and the hardware is still impressive. Out of the box the PS3 comes standard with many features including: built in Wi-Fi, built in hard drive (that can be easily swapped out for bigger ones), wireless controllers, Blu-Ray disc drive, 1080p resolution capability, and SD memory slots. The software (the main PS3 operating system) has had many updates over the years and now boosts many cool free features including PS Home, their version of “Second Life”. Additionally with the Wi-Fi features of the PS3, you can play networked games for free and have messaging/browsing capabilities from the PS3 (the browser does suck though, and would never use it for traditional web browsing). And of course they have their own marketplace where you can buy movies and games and download them straight to your console (hence the need for the hard drive).

Sony made a business decision to pack in the latest technologies into the PS3, so even at the end of its life cycle, it will be very up-to-date and technology wise very capable. This has lead to the biggest ‘achilles’ heel of the PS3, which is price. Currently as of this writing, the PS3 is still the most expensive console on the market at $399.00. This is the lower model, with an 60Gig hard drive. And with that, the PS3 is in 3rd place in terms of global sales, which is very surprising considering it was by far the market leader in the previous game console generation (Playstation 2).

For games, only at this time has some truly great games been coming out for the PS3. Some hits that came out this past year include Grand Turmiso 5, Grand Theft Auto, Fallout 3 and the breakout hit of the holidays “Little Big World”. The graphics and gameplay are superb on the system and easily matches or out-does graphics being rendered on the XBox (and it should, the PS3 has some serious computing power).

The XBox, while competing with the PS3 in terms of the gaming and technology is very different in build and business strategy. Microsoft, after getting killed in terms of sales on their first version of the XBox, wanted to be first to market with the current gaming consoles. So to get a lead (and they were first to market by a full year), they really cut corners to reach the market with a new console. To be blunt, the XBox is a cheap piece of hardware. I received the bottom basement system called the “XBox Arcade”. This was priced at $199.00, and is now the cheapest next gen system on the market. Microsoft priced it so to move units this holiday season and it seem have worked, increasing their sales (but still not able to beat the Wii in overall sales during the holiday season).

Now I’m briefly only going to mention the ‘ring of death’ issues that the XBox is notorious known for. By some accounts, over 20% percent (or higher) of XBoxs fail or basically are broken completely. This state is know as the ‘ring of death’ - called when the light ring on the front of the console all light up bright red and indicates you now have a very expensive paper weight. Microsoft knew about this issue and stonewalled consumers for the first two years until finally acknowledging the issue and promising to fix for free or give new systems to customers. To learn more, just Google ‘Xbox ring of death’.

So knowing all of that, and the the fan issue (the fans on the system are LOUD), I was still very surprised on how cheap and inferior the hardware was when I took the Xbox out of the box. The Arcade version is just the basic system and doesn’t have a hard drive (the next system up for $100.00 comes with a hard drive). The wireless controller is battery operated (on the PS3 you can re-charge the controller by USB cable to the system). It will play DVD movies but no next gen disc player (Microsoft supported the losing format - HD-DVD). There is no wireless card so you will need to plug in a ethernet cable to get online (Both the Nintendo DS and Wii has wireless, and the DS is only $100.00). It was amazing how Microsoft got away with all of this. While the PS3 is more expensive, you see where the money is, with the XBox, it totally feels like an PC computer wrapped up in a better aesthetic looking box.

For software, Microsoft really shows its strengths. After all Microsoft first and foremost is an software company and their new operating system is slick, smooth and fun to use. I was impressed by the interface which sort of copies the Apple ‘coverflow’ look and feel but works very well with the needs of the gaming system. Unfortunately to get the most of the system you will need to sign up for a $50.00 an year membership with XBox Live. This will allow you to play networked games, and download certain content. On the PS3, its all free. More annoying is the need to buy Microsoft credits (their monetary payment system). Basically everything is converted into Microsoft credits - movies, games, demos, etc. But the problem is there is no 1 to 1 relationship with dollars and Microsoft credits. You need to buy a bulk number of credits to then use to buy your goods. So basically Microsoft forces you to buy more from them, even though you only needed less to buy the item you wanted. Example for Apple iTunes, I know a song I want is a dollar. I pay 1 dollar for the song and download. For Microsoft, the song I want is an dollar also, but I will need to buy $5 worth of Microsoft credits to then spend only $1 to buy that song I wanted. Its sort of sketchy.

Now the biggest issue I have with the Xbox is the a la carte system they have. As I said, PS3’s biggest issue right now is the price. But after owning the cheaper priced XBox, I realize that Microsoft is committing one of the biggest scams in the consumer electronics world (and getting away with it). If I wanted to make things apples to apples, or at best add the items that I need to get my XBox running the way I need it to fit my gaming lifestyle, here is what I started to realize: In the long run, the XBox is going to cost me alot more then the PS3.

Let me begin. So I have a wireless hub at my house, and will need the XBox to get a wireless connection if I want to go online. Well an wireless adapter sold by Microsoft for the XBox is $100.00. Yep, you heard it, $100.00 to add wireless connections to your XBox (in the PS3, its built in with the price). Now I figure I do need an hard drive for the XBox. They come in 3 configurations: 20, 60 and 120 gigs. Well for the 60 Gig drive, we are looking at $90.00 brand new. So already we are now at the cost of $400.00, which the PS3 is coming in at. Add in the cost of the XBox Live membership, which is $50.00, and now you are spending more then a comparable PS3. And this is still not including any sort of next gen disc player that the PS3 also has built in.

After talking to fellow XBox owners and my regular sales staff at the local Gamestop and they all agreed Microsoft was milking their consumers with this pricing model. But you know what, it is working cause even with the ‘hidden’ price points, the ‘ring of death’, the absense of an next gen disc player, the XBox is selling well.

In summary, the XBox has alot of things going for it, including something I did not mention before, a large library of games (more so then the PS3). But with someone who can definitely compare the two systems as an owner, I’m a bit stunned by some of the attributes and business decisions Microsoft has made with the XBox. While I’m happy with my PS3 (but not estatic — they will need more killer games in the future to make me in that state), I’m treating the XBox as the gift it was. Currently I can say I would not have brought the XBox with my own money if it wasn’t an gift, while with the PS3 I would have paid my own money.

Yesterday, the new Special Olympics website was launched (http://www.specialolympics.org). Plus Factory worked with the technology group 1over0 Technology to build this first phase of the Special Olympics website. The Special Olympics is a special group to our hearts, its mission is to “serve the nearly 200 million people with intellectual disabilities, with a presence in nearly 200 countries worldwide, spreading the belief in people with intellectual disabilities and in the spirit of Special Olympics”.

The website (front-end design and back-end Content Management System) was ready for an overhaul, and working with 1over0, Plus Factory helped build the front-end Flash modules (Video players, Photo Headers, Photo Slideshow player, Interactive Timeline, etc.) to work with the new Content Management System (CMS) that was implemented.

The site looks great, and much of the content was ported over from the old site into the new site via the CMS. The multimedia modules we built now gives the site more dynamic context and visuals to go with the content, stories and articles that are thru-out the site. Look out in the future for more interactive features that we are building for the site.

This was an interesting article in the NYTimes last week about Ad agencies building their own brands and intellectual properties. The thinking goes, since they do it professionally for brands now, why don’t they build their own and gain the revenue? They cite a few agencies that are following this model includes Bartle Bogle Hegarty (under their Zag division name), and Brooklyn Brothers. Other agencies that follow this model includes Anomaly (who makes it part of their DNA to get skin in the game) and Droga 5 (which created an disastrous product last year called “HoneShed”, which was their version of MTV meets QVC on the web. They are re-launching it because it did so poorly).

For this article they focus on a blog that Bartle Bogle Hegarty (Zag division) created called “Mrs-O”, a blog that focused on Mrs Obama’s fashion/style and to become “a central resource for tracking her style and providing as much designer information and commentary as possible.” The article cites the start up cost for the blog ($2,000.00), minus the cost of at least 14 agency staff members who contribute to the posts. The URL is www.mrs-O.org.

I think this is a great idea and applaud the agencies to pursue the building of their own properties and brands. But I think the execution is less then ideal, and sort of gently reminds me of an known truth in our industry - which is traditional agencies just don’t ‘get’ digital.

Let me discuss some of the issues I see with www.mrs-O.org from an digital professional POV:

First, the domain is totally wrong. With the inclusion of ads and Google AdSense on the site, its obvious that Zag wants to monetize the site. But in doing so they used an .org domain, while having no requirements for registration — they are perceived by the common public to be of non-commerical entities. While there are other examples of the .org domain being used as an commercial site, many people question whether it is ethical to do so. Doing a quick search I have found other mrs-o domains that are available including www.mrs-o.us or www.mrs-obama.info. Either of them would be more appropriate for the blog URL.

Second is the cost. While custom blogs may take time and resources, what I see is a simple Wordpress blog, using an free ‘theme’ template. Installing Wordpress on a server is extremely easy (if there are no customization, no edits), takes no more then 20 minutes. Ok, add some AdSense ads, and banners. Transfer or redirect domain to the server space. Add some posts. Create settings. I really can’t see this taking more then a several hours to get up and running. I’m just talking about the blog I currently see, which is very plain and off the shelf looking. So lets say it took 8 hours to build this blog (a very generous amount of hours) and times it by a very nice rate of $100.00/hr, we are talking at $800.00 to build this blog that is live. Add $9 to register the domain at GoDaddy.com and another $10 a month for server space for an hosting company, that is my analysis for the cost of this blog. But $2,000.00 — as cited in the article, I don’t know about. And with 14 staff contributors, I think you would get more then 1 post a day on the blog, which is what the blog currently has.

Lastly, I think a huge opportunity is wasted by not having affiliate links or click thrus to items on the posts. If the blog is about Mrs. Obama’s style and what she is wearing, then besides writing about it, fans would probably would like to know where to buy the goods. Where are the links? A great example of a product blog that not only writes about the goods but show you where to go to get them is www.uncrate.com (one of my favorite blogs).

Ultimately, Zag has done well with the blog as per the article states — good traffic, book deals, leveraging the content to other ad networks. But great ideas will never truly be articulated to their fullest potentials if you don’t bring in the professionals to execute and launch these ‘products’ successfully.

Having the idea is half the battle. Agencies, especially good creative agencies will be full of them. But executing and executing well is what separates the thinkers and the do’ers. Agencies like Bartle Bogle Hegarty and Droga 5 will never fully master the digital channels without brining in the ‘digital’ specialists.

So a special call out to one of our clients, Sam Shine - founder of MallSelf.com. We helped Sam with his startup company MallSelf.com, which is an online shopping website. Plus Factory was the team behind his Phase 1 and Phase 2 site build and brand identity.

Currently MallSelf.com, which just launched into Phase 2 at the beginning of 2009, offers coupons and special deals with over 200 stores that has partnered with the website. Besides helping with the design and back-end built, for Phase 2 Plus Factory built an custom Content Management System that allows MallSelf.com to manage/edit/control all the deals and offers they have on the site. In future versions, the site will be even more robust and offer more personalized features for the user.

We look forward to working with Sam and his team in the future. We at Plus Factory, see alot of potential with MallSelf.com and wish them the best in 2009.

To learn more about Sam and MallSelf.com, read this article from the Buffalo News:

Teen entrepreneurs run online mall, Mallself.com

I don’t know who the writer was for this Lexus “December to Remember” commercial, but I had the exact same experience in 1982 including saying up late to play centipede. Ahhh the Atari 2600, my first video console system. It was the best x-mas ever for me. The only thing about this commercial, I wouldn’t be that excited to get a brand new lexus (sorry Lexus, I’m an german car fanatic)