Microsoft seeking royalties for third-party peripherals for Xbox 360

James Delahunty
11 Aug 2005 8:38

Software giant Microsoft is looking to take a cut out of the market for third-party peripherals for it's Xbox 360 gaming console. The Xbox 360 has a new security system embedded in the console that will block the use of any unlicensed devices with the console. This means that all controllers, steering wheels etc... released for the Xbox 360 will have to be authorised by Microsoft. This information comes from a new contract between Microsoft and peripheral maker Mad Catz.
You may remember that Microsoft put a "seal of approval" on certain third-party hardware for the Xbox console. This system, Microsoft claimed, was put in place to help customers get the best possible experience with the console. This new security system is like an extension of that method. It is normal for a console manufacturer to demand royalties for units of software sold for the device, but not for hardware.
Interestingly, the Mad Catz contract seems to only permit the manufacturing of wired controllers for the Xbox 360 and not other add-ons such as wireless controllers, memory units or add-on hard drives. It's unclear whether Microsoft will allow third-parties to create a wider variety of peripherals, or if the company will only allow first-party accessories.
Source:
GamesIndustry.biz

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