I previously voiced my displeasure with Microsoft’s planned console DRM scheme. In short, it had more restrictions than digital distribution systems like Steam or iOS while offering few of the benefits.

I wasn’t the only person annoyed. Sony drew blood with vicious and biting videos at Microsoft’s expense, and even US military publications spoke out against the system. Microsoft tried to stanch the bleeding, promising that you could share your game with ten friends and log in your console from your phone and etc etc, but these were complicated digital solutions to problems that don’t exist with current generation consoles.

It’s not a huge surprise then that Microsoft has folded their hand and given up on the whole scheme.

This was an unforced error by Microsoft. They designed the new system around their own corporate needs and only belatedly considered how the changes would affect real users. They never made an affirmative case for why this system would be better than the status quo. They just tried to muscle it through. I think the final straw for Microsoft was realizing that none of the major publishers, the very companies this system would most benefit, publicly backed Microsoft’s position during the controversy.