The war between consoles is heating up and if recent allegations are to be believed, Microsoft may not be playing the game by the book. Allegations of the software giant engaging in a console version of the payola scheme have been floating around. If the rumors are to be believed it seems Microsoft may have paid off a number of YouTube reviewers for giving glowing reviews of the company's latest console the Xbox One.
A payola scheme is an illegal practice that started out in the music industry. Record companies would pay off radio stations for added airplay. While the situation may be different here, there are a number of parallels. In this case, Microsoft plays the role of the record company while the gaming website Machinima and its affiliated content providers are the radio stations. According to the allegations, Microsoft offered an additional $3 bonus for each additional 1 thousand views that videos with positive Xbox One reviews garnered. However, both the companies are denying the allegations.
The promotion was first made public when Machinima's UK community manager reportedly posted a tweet about it. However, the tweet was deleted shortly after it was posted. Additional evidence on the matter was also found on Poptent, which mentioned another promotional campaign back in December offering $1 per thousand views for promoting Microsoft's new console.
While the practice may seem harmless, there are a number of details that raise certain concerns. Paying video reviewers for getting additional views is not actually unheard of. And as long as the video reviewers are given the freedom to say what they want about a certain product, there is no harm in receiving additional payments for extra views. The problem here, however, lies in the fact that the video reviewers may have been coerced to give positive reviews in exchange for extra cash. A legal agreement used for the campaign was leaked online and the agreement included a peculiar line:
"You may not say anything negative or disparaging about Machinima, Xbox One or any of its Games in your Campaign Video," said the legal agreement. This is the "smoking gun" that industry watchers are being wary about. Moving forward, many consumers and professionals are starting to worry if this is a sign of things to come. If all the allegations are to be believed, video game companies may find it tempting to pursue similar marketing strategies in the future.
Microsoft said it is not aware of any such agreement. "Microsoft was not aware of individual contracts Machinima had with their content providers as part of this promotion and we didn't provide feedback on any of the videos," the company said in a statement.
Microsoft further went on to state that it did nothing wrong by partnering with Machinima. "This partnership between Machinima and Microsoft was a typical marketing partnership to promote Xbox One in December. The Xbox team does not review any specific content or provide feedback on content. Any confidentiality provisions, terms, or other guidelines are standard documents provided by Machinima. For clarity, confidentiality relates to the agreements themselves, not the existence of the promotion," the companies told Ars Technica in a joint statement.
we wonder what the Federal Trade Commission has to say about that.
