DRM controversy, E3 2013

Microsoft initially announced a different game licensing scheme for Xbox One than what was used upon its release: all games, including those purchased at retail, would be bound to the user's Xbox Live account. Users could access their purchased games from any other Xbox One console, play games without their disc once installed, and allow users to "share" their games with up to ten designated "family" members. Users would trade games at "participating retailers", and could also transfer a game directly to any Xbox Live friend on their list for at least 30 days, but only once. To synchronize licenses, the console would be required to connect to the internet once every 24 hours; if the console could not connect, all games would be disabled until the console was connected again.

Reaction to this digital rights management scheme was largely negative. Critics felt that the changes would infringe on consumers' first-sale rights for games purchased on physical media, as games would only be licensed to users rather than sold, and the disc itself would only be used to install the game and not confer ownership of its license or permission to resell. Microsoft also stated that publishers could impose restrictions or activation fees on second-hand copies of games. Xbox Chief Marketing and Strategy Officer Yusuf Mehdi explained that the system was built with digital distribution in mind, but that Microsoft wanted to maintain the availability of games on physical media. He also noted that Microsoft was not "giving in" to publishers' objections to used games, but rather trying to balance the needs of consumers and the industry, and that the trading and sharing abilities of the platform added a level of flexibility not seen on other online distribution platforms at the time.

Microsoft's E3 press conference on June 10, 2013 was also criticized for focusing too much on games that, beyond increased graphical capabilities, provided experiences that were otherwise similar to previous-generation games—giving little incentive for buying the new console. After Sony's E3 press conference later that evening, GameSpot editor Tom Mcshea went on to say that Microsoft had become anti-consumerist, trying to "punish their loyal customers" with strict restrictions, and that "by saying no to the used game restrictions and always-online that Microsoft is so happily implementing on the Xbox One, Sony has elevated the PlayStation 4 as the console to grab this holiday season." Rafi Mohammed, author of "The Art of Pricing" felt that Microsoft priced Xbox One "too high", and the $100. Premiums over its competitor could "derail" the system during the 2013 holiday season.

Response from Microsoft

On June 19, 2013, Microsoft announced, in response to the negative reaction, that it would reverse its changes to Xbox One's DRM and game licensing model. As with Xbox 360, users would be able to share and resell physical games without restrictions, and beyond a mandatory software update upon the console's initial setup process, and to enable playback of Blu-ray and DVD video, the console would not require a permanent internet connection to operate. These changes required the family sharing features, along with the ability to play games without their disc after installation, to be dropped. Xbox One chief product officer Marc Whitten stated that the family sharing feature may return in the future, but could not be implemented on launch due to time restraints. Don Mattrick, the then president of Microsoft's Interactive Entertainment Business, stated that the licensing changes were in response to the negative public reaction. Other analysts believed that the change was in direct response of Sony's aggressive position during its E3 press conference. Mattrick, who had been a leader in Xbox One development, announced his departure from Microsoft on July 1, 2013, to become CEO of Zynga. Analysts speculated that his departure was predicated on the poor response and subsequent reversal of the plans for Xbox One.

Microsoft also backtracked on a similarly controversial requirement for the Kinect sensor to be plugged into Xbox One at all times for it to function. Privacy advocates argued that Kinect sensor data could be used for targeted advertising, and to perform unauthorized surveillance on users. In response to these claims, Microsoft reiterated that Kinect voice recognition and motion tracking can be disabled by users, Kinect data cannot be used for advertising per its privacy policy, and that the console would not redistribute user-generated content without permission. In response to these pre-launch changes and a belief that Microsoft's decisions for the systems were in poor judgement, journalists and consumers jokingly gave Xbox One nicknames such as "Xbox 180", in reference to the Xbox 360 and Microsoft's decision to reverse its controversial decisions, and "Xbone", suggesting that the company was "throwing a bone" to consumers by making these changes

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Upon its release, the Xbox One received favorable reviews from critics and reviewers. In its launch review, Polygon gave the Xbox One ... 8 out of 10. Its design described as "inoffensive" but its larger size noted, the console's quieter and cooler operation was considered a sign that its hardware may be more reliable than the Xbox 360 was on launch. The controller was praised for its battery life and "premium" design, but some members of the site's staff felt that its shoulder buttons were stiffer than that of previous designs. The design of Xbox One's interface received mixed reviews: noted that it carried over Windows 8's design language, the interface was disfavored for hiding functions under the controller's menu button and for being awkward to use with a controller or motion gestures, seemingly encouraging for users to use voice navigation instead. While praised for having more "robust" voice navigation than Xbox 360, they felt that voice navigation still had a "learning curve in understanding what works and what doesn't." Although its user following, Smart Match, and improved voice chat features were noted, Xbox Live was panned for not offering the ability on launch to use one's real name (as on PlayStation 4). Despite a regression in local and network multimedia functionality in comparison to Xbox 360 and how OneGuide interacted with outside set-top boxes (drawing comparisons to the operations of TiVo DVRs), Polygon felt the Xbox One's overall multimedia experience "feels like a major step forward in set-top boxes and makes the Xbox One the obvious center of any living room that has one."

Engadget was similarly modest upon its launch, describing the Xbox One's design as a "1993 artist's rendering of 2013's technology". Acknowledging that its controller was a mere refinement of the "ubiquit[ous]" Xbox 360's, they praised the controller for its improved D-pad and quieter triggers but criticized its stiff shoulder buttons. Kinect received positive reviews for its face recognition login and improved motion tracking, but that whilst "magical", "every false positive or unrecognized [voice] command had us reaching for the controller." The overall interface was also considered to be more intuitive and flexible than that of PlayStation 4, but they disliked its game library view for consisting of "jumbled, sadly unfilterable rows of every owned piece of software", and knowingly listing games that require their disc to run alongside those which don't. The console was also panned for missing certain promised features on-launch, such as Upload Studio, game streaming, and certain apps/services.

Later on, critics felt that the Xbox One's functionality had matured over the year following its launch; CNET acknowledged improvements to Xbox One's software since its original release, but that its user interface was still unintuitive in comparison to Xbox 360 and PlayStation 4, explaining that "navigating the interface seems to be much more problematic than it rightfully should be, and there's simply not enough transparency in the logic within it. There are oddities peppered throughout, which is the root for countless headaches and frustrations.". Xbox One's in-game performance was mixed, with some games' showing slower performance over PS4 but some multi-platform games' performing better on Xbox One than PS4. CNET praised the console's providing a better lineup of multimedia services and apps over PS4, free cloud-synced save data for all users (PS4 requires PlayStation Plus for such functionality), support for high-speed USB 3.0 as secondary storage, and having a "slightly better" lineup of upcoming exclusives, concluding that "While the PS4 had a clear advantage at launch, that edge is slowly evaporating as Microsoft has worked feverishly to undo most of the Xbox One's original missteps."

TechRadar similarly felt that Xbox One "[felt] more like a media titan today than it did 12 months ago," citing OneGuide, Upload Studio, and Microsoft's decision to drop the Xbox Live Gold requirement for multimedia streaming apps, and that "there's still a lot of potential locked away inside the hardware of the system that developers are just beginning to figure out. So while PlayStation might have the upper hand for now when it comes to certain third-party titles, it may not always remain that way. Just how Microsoft will get it to that point, though, is still a mystery." However, they disfavored the console's dependence upon a subscription for most of its functionality, Kinect's voice recognition, and some games' not running at full 1080p resolution.

IGN also praised how Xbox One had evolved since its launch, acknowledging that Microsoft had "made good on its promise of listening to consumers, rolling out a steady stream of updates that have both broadened and deepened what this third Xbox console offers." Regarding the console's slightly lower level of graphics capabilities in comparison to PlayStation 4, it was noted that "while videophiles might spot instances of upscaled graphics and less detailed environments immediately, most people generally won't notice a difference between Xbox One and PlayStation 4 versions of a game (when there is one) unless they see both running side by side", and examples of "gorgeous" Xbox One games were noted, such as Sunset Overdrive and Forza Motorsport 5. The number of "hidden" options in Xbox One's user interface was equated to "hunting for treasure in a messy room"; as such, Kinect voice commands, in combination with access to common functions within the Xbox SmartGlass app, were praised for helping to provide a more streamlined user experience.

On launch, Xbox One was available in a single retail configuration, which included the console with 500 GB hard drive, one controller, and Kinect sensor. In the United States, it retailed for US$499. On June 9, 2014, Microsoft released a new Xbox One retail configuration that excludes the Kinect sensor, costing US$399. A standalone Kinect sensor for Xbox One for use with these models was released in October 2014, retailing at US$150. On June 16, 2015, Microsoft lowered the price of the stock model to US$349, and released a new US$399 model containing a 1 terabyte hard drive and a refreshed controller. In some markets, this model will also include a copy of Halo: The Master Chief Collection.

Those who pre-ordered Xbox One for its release received a special "Day One Edition", which featured "DAY ONE 2013" inscriptions on the console and controller, and a free one-year Xbox Live Gold subscription. A white "Launch Team" edition was given exclusively to Microsoft staff members, featuring the inscription "I made this, LAUNCH TEAM 2013" on the console and controller, and was bundled with Dead Rising 3, Forza Motorsport 5, Ryse: Son of Rome, and Zoo Tycoon. A similar limited edition was gifted to Respawn Entertainment employees following the release of Titanfall, with a black, white, and orange color scheme and a similarly-styled controller inspired by the game (the controller itself would be released publicly as a tie-in).

Xbox One consoles bundled with digital copies of specific games have also been released, including Titanfall and Forza Motorsport 5. In October 2014, a non-Kinect bundle featuring a white Xbox One and a coupon for a digital copy of Sunset Overdrive was released, marking the first public availability of white Xbox One models. In November 2014, a limited edition bundle was released for Call of Duty: Advanced Warfare, featuring a 1 terabyte hard drive, a dark grey and gold hardware and controller design inspired by the aesthetics of the in-game Sentinel Task Force, a coupon for a digital copy of Advanced Warfare‍ ' s "Day Zero" edition, and special in-game items. Bundles featuring coupons for digital copies of both Assassin's Creed Unity and Assassin's Creed IV: Black Flag were released in November 2014: the Kinect-equipped version also includes a coupon for a digital copy of Dance Central Spotlight. Another non-Kinect bundle was released in March 2015 that includes a coupon for a digital copy of Halo: The Master Chief Collection.

On November 22, 2013, Microsoft confirmed that it had sold one million Xbox One consoles within its first 24 hours of being available. Based on approximately 102,000 shopping receipts tracked by InfoScout, 1,500 of which included a purchase of either a video game or a video game console, the Xbox One was the highest-selling console during the Black Friday sales period in the United States.

On December 11, 2013, Microsoft announced that it had sold approximately 2 million units in its first 18 days on sale. On December 12, 2013, Microsoft announced it was the fastest selling console in the United States based on NPD Group figures, however the NPD report clarified, "PlayStation 4 sales included an additional week within the November data month compared to Xbox One. When looking at sales on an average per-week basis, Xbox One led PS4. Keep in mind, however, that supply typically becomes constrained in the second week after launch."

On January 6, 2014, Microsoft announced that approximately 3 million consoles had been sold worldwide in 2013. In their Q2 2014 earnings report on January 23, 2014, Microsoft announced that 3.9 million Xbox One units had been shipped worldwide. On November 12, 2014, Microsoft announced they had shipped almost 10 million units to retailers worldwide. The company also revealed that a price cut had tripled U.S. sales of the console over the previous week. On December 11, 2014, Microsoft announced, based on NPD Group figures, that Xbox One was the best-selling console in November 2014.

The Xbox One has sold poorly in Japan, selling a total figure of 23,562 consoles within its launch week. By comparison, the Xbox 360 sold 62,000 consoles in Japan during its opening week in 2005 In the week ending June 14, 2015 the Xbox One sold just 100 consoles in Japan, by way of comparison, in the same week the Wii U sold 16,413 consoles

Reception

Pre-release

Post-unveiling

After the official unveiling of Xbox One in May 2013, the editorial staff of Game Informer offered both praise and criticism for the console. Matt Helgeson described the console as Microsoft's intent to "control the living room". He called Xbox One's instant switching features "impressive", and that the console was "a step in the right direction" with regards to TV entertainment, especially the prospect of avoiding the usage of non-intuitive user interfaces often found on cable set-top boxes. Jeff Cork said that Microsoft had "some great ideas" for the console, but that it failed to properly communicate them...