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After 10 years, Microsoft's gaming console Xbox is still not officially available in Malaysia The longstanding reason of 'high software piracy rates' no longer holds, so what's next? LIKE many others of my generation and older, I grew up almost exclusively on Microsoft products.   Sadly, the longstanding relationship I have with this technology giant has, in recent years, become one that oscillates between love and hate. I love the fact that Microsoft Word was a steadfast friend and companion throughout my student years and, till today, plays a big part in my professional life.   I love all the educational outreach programs that Microsoft does to help youths level up their technical skills and events such as the Imagine Cup, which has had such a profound impact on the lives of so many.   But I hate, I repeat, hate the fact that we remain a second tier consumer market in its eyes.   Sure, it can’t be helped. Compared with Singapore, which also serves as the company’s regional hub, we are not a developed nation only a developing one. It’s only to be expected that we don’t get the latest products first because we have a lower proportion of consumers with a high disposal income and penchant for gadgets.   Microsoft isn’t the only technology company that has

classified this market as such, and I am resigned to this reality till the economic standing of this nation climbs up a couple of rungs. But while I am fine with not being the first market in the region to get the latest gadgets and software, not getting it at all is really the bigger insult.   For those not already aware, despite it being 10 years since the first iteration of Microsoft’s gaming console Xbox was launched in Asia, it remains officially unavailable in Malaysia.   In fact, a recent query to Microsoft over the matter yielded the following statement: “Xbox 360 is currently sold in 38 countries around the world including Singapore, India, Taiwan, Hong Kong and South Korea. We have no further announcements regarding expansion at this moment.”   Thanks, Microsoft.   But wait, you ask. What about those Xbox consoles you’ve seen in living rooms of friends and family? Sitting in a pretty row in game shops? Two words: Grey imports.   As a technology journalist, I have the pleasure of interacting with the good folks over at Microsoft and every time “the Xbox issue” comes up, the same broken record gets played over and over. The main reason why Xbox is not officially available? Because of Malaysia’s high levels of software piracy.   Fact is, they

say, Microsoft makes a loss on every Xbox unit sold. The real money comes from the sales of games and the country’s level of software piracy doesn’t make it an attractive market to launch Xbox in.   I am tired of hearing that damn excuse, so let me retire it once and for all with a simple table (see table on left). Comparing the list of all countries where Xbox Live, the company’s online multiplayer gaming and digital media delivery service, is available with their piracy rate as stated by an annual survey conducted by the Business Software Alliance (BSA), there are five 'Xbox countries' with higher piracy levels than Malaysia.   One might argue that Russia and India (both with 63% piracy rate) boast larger populations and more room for growth. Mexico, with its 57% piracy rate, probably gets the goods because it’s just down south from the United States.   But Chile with its piracy rate of 61% and population of 17.5 million beats out Malaysia with a 55% piracy rate and population of 28 million people for Xbox?   Let’s not even talk about Greece with its 61% piracy rate because let’s face it; the country’s debt crisis does not make it an attractive market for anyone right now.   Just to add to this equation,

this year, it was reported that Malaysia has been taken off the United States Trade Representative's (USTR) watch list for intellectual property rights (IPR) protection and enforcement issues, in recognition of its progress made.   Simply put, something is just not quite right with this picture. First of all, having the console officially available and Xbox Live activated for the market automatically lowers piracy concerns, with digital content delivery and digital rights management locking everything to a verified user account.   The urban population, which would be the first target market for such a product, already has access to high speed broadband … for the most part. And don’t tell me Malaysians don’t spend on gaming. According to an interview with MOL Global, internal industry stats show that the Malaysian gaming market generates between RM20 million and RM25 million (US$6.4 million and US$8.1 million) in revenue a month!  By making Xbox “unavailable”, all that’s been done is make an entire generation of consumers learn how to point everything to Singapore’s Xbox Live Store and input other people’s information just to get access to the Live Marketplace.   Not to mention the money from sales of all those grey imports goes toward pumping up Microsoft Singapore’s bottom-line and not Microsoft Malaysia’s. That’s right, I said it.   Before you tell me