Xbox One’s $700M data center should help combat the PS4′s onslaught



In the wake of Microsoft backtracking on some of the draconian online requirements for the Xbox One, the company has been hard at work preparing the world for its next console. It has only been a few days since the announcement, and already so much has happened. There are more interesting tidbits than we know what to do with, so we’re going to save you some time and bring you up to speed right here.


Microsoft is still betting heavily on cloud computing for its next-gen platform. It has recently come to light that Microsoft plans on building a $700 million data center in Des Moines, Iowa. With promises of cloud storage and computing available for every game on the Xbox One, it’s no surprise that Microsoft is working on growing its cloud capabilities. Just a few days ago, the Iowa Economic Development Authority Board granted a $20 million tax break to secure West Des Moines as the location for Microsoft’s next data center. “Project Mountain,” as this development deal is codenamed, is just the tip of the iceberg as far as I’m concerned. With Microsoft’s desire to be able to spin up servers dynamically all over the world, this isn’t going to be the last we hear of Microsoft data centers popping up in surprising locations. If Xbox Live continues to grow and consume more resources, we could see many more of these centers launch around the world during the Xbox One‘s lifespan.


Meanwhile, pricing consultant Rafi Mohammed was recently seen on Bloomberg TV praising Microsoft’s DRM flip-flop, but criticizing the company on its pricing strategy. Mohammed likened the console market to the razor and blade model where Microsoft should be selling the Xbox One for as little as possible in hopes of making more money on games. With the PS4 launching at $399 right alongside the Xbox One at $499, Microsoft is going to be fighting an uphill battle against price-sensitive consumers. Even with a bundled Kinect, the $100 premium over Sony’s offerings is a hard pill to swallow.


Hideo Kojima, the man behind the Metal Gear series, perhaps unlike Mohammed, seems very keen on the Xbox One. Regarding the discrepancy of power between the PS4 and Xbox One, he says “the difference is small, and I don’t really need to worry about it.” In addition, Kojima seems to think that since the rise of smartphones and tablets, cameras should ship standard with all consumer electronics. Even though the Xbox One has substantial public relations and pricing problems to cope with, Kojima seems sold on the idea of the always-on Kinect being a benefit for the platform.


As for when we’ll get our hands on Microsoft’s new console, short time ago Amazon altered the Xbox One’s product page to list the release date as November 27, 2013. This immediately caused a commotion across the internet, but that is nothing more than a placeholder date. Our sister site IGN was told directly by Microsoft that the November 27th release date is nothing more than a rough estimate from Amazon. While the Xbox One is still slated for a November launch, Microsoft still hasn’t solidified a release date. At this point, it seems that Microsoft and Sony are still content playing chicken to see who will launch first.


View the original article here