New royalty program for next generation Xbox

By Derek Sooman on August 11, 2005, 6:25 AM
Microsoft is to introduce a new royalty program for the next generation Xbox that will only permit accessory makers that get Microsoft's blessing to produce Xbox 360 game pads, steering wheels, joysticks and other controllers. How to get that blessing? By forking over a slice of their sales to Microsoft.

Microsoft wants only authorized products connect to the new console, and this is the best way the software giant can think to facilitate this. The company is to create a security mechanism that will be available exclusively to those who sign a deal with the Microsoft. What is this all about? Well, Microsoft seems intent on making a profit with the new Xbox, something that did not happen with the previous incarnation of the console.

"Microsoft has made it very clear that it's all about profitability" with this generation of console, IDC analyst Schelley Olhava said. "Maybe this is a way they are looking to make additional revenue off of the Xbox."

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