Xbox One Microsoft paying YouTube producers to highlight Xbox One

[KN1GHTMARE]

Microsoft allegedly made deals with Machinima video partners to pay them extra if they promoted the Xbox One, but only if those video producers kept the agreement confidential, reports Ars Technica.

According to Ars Technica, Microsoft's confidentiality requirement may violate the U.S. Federal Trade Commission's guidelines for advertising that contains endorsements. "When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience), such connection must be fully disclosed," the guidelines state.

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Well this can definitely turn into more of a headache than MSFT may have imagined should it travel via the proper channels. While the idea may have been sound, the execution may not even be legal. It will be interesting to see if this leads to the eventual indictment against the company and what other repercussions come as a result.

 

[heavensdevil]

This doesn't bode well for Microsoft, I've heard people talking about it and thought that is borderline bribery. It's okay that they want to promote their product but please do it in a transparent manner. What's up with this shady under the table agreements.

 

[StingerNLG]

Except Microsoft's name is nowhere on any of the documents. This is called reaching for straws.

I'm finding it stunning that this is a story anyway.

 

[ThunderSteel]

Your company's name doesn't need to be on the documents for it to reflect badly on your company. Any known variation of the company's product name would be sufficient to reel that company in for questioning. Especially since they have something to gain from such promotion.

 

[HailVectron]

How is this a story? Microsoft pay 3rd parties to essentially advertise Xbox One - um, yeah, and? Its not like they were asked to output MISLEADING information - that's a whole different ballgame...

 

[KN1GHTMARE]

How is this a story? Microsoft pay 3rd parties to essentially advertise Xbox One - um, yeah, and? Its not like they were asked to output MISLEADING information - that's a whole different ballgame...

It's a story because such agreements cannot be confidential

 

[HailVectron]

It's a story because such agreements cannot be confidential

Hmm - yep, the agreement does have a nondisclosure component - I take it back. This is Machinima though right, not Microsoft?

 

[thedoodseven]

Man, this one is just... not cool at all. It's so sketchy and so... I don't, it's just not cool at all. What kind of motive are they trying to do here? Yikes, I just hope this isn't practiced with other channels. And also, I just hope Microsoft isn't involved with this practice.

 

[KN1GHTMARE]

Hmm - yep, the agreement does have a nondisclosure component - I take it back. This is Machinima though right, not Microsoft?

Machinima was the one paying Youtubers but the rumor is Msft was paying Machinima

 

[marthyrocks]

This is a dirty dirty scheme but you know, what if there';s been a lot like this going on? Probably there's been more promoes like this going on, it's just been kept way confidential than this. But this little promo already exposes a bit of the dirty act going on within Youtube.

 

[spark_777]

Machinima was the one paying Youtubers but the rumor is Msft was paying Machinima

Oh man, that rumor about MSFT is downright wrong. Bribery at work. Well, we'll have to see what Microsoft has to say about this. I also saw Boogie, the popular Youtuber, said this stuff happens a lot more often than we think. marthyrocks might be right that stuff like this happened already and we weren't aware of it.

 

[thecreed4life]

Oh man, that rumor about MSFT is downright wrong. Bribery at work. Well, we'll have to see what Microsoft has to say about this. I also saw Boogie, the popular Youtuber, said this stuff happens a lot more often than we think. marthyrocks might be right that stuff like this happened already and we weren't aware of it.

It gives me the creeps but then again, you're right. There's probably been a lot like this happening everywhere. I don't think it's limited to gaming. Even in movies. A friend of mine once said that some reviewers would be killed if they ever criticized a certain movie. Even if the movie sucked to the core, the reviewers still had to praise it.

 

[noblesserai]

The thing is that currently Microsoft is denying any involvement. So it looks like unless there is direct evidence of them telling Machinima to pay off creators then it's Machinima that's going to take all the blame. The whistleblowers twitter account has been suspended for some reason (which makes this even more suspicious) but it's too late. We all already know that Machinima was involved even if we don't know the names of the creators involved (who were being only paid I believe $3). The only question is whether or not we take Microsoft at their word.

 

[Nachoman11]

From what i've been hearing is that microsoft went to machinima and offered a deal, then machinima changed the contract to make it so that it was secret. Meaning that microsoft didn't intend in being secret.

And also the main finger should be pointed at machinima. People have trust in this company to receive unbiased reviews and information. For me microsoft was playing what I would call "a dirty trick" but machinima was plain evil by going money over people.

And also you see this thousands of times on ads in tv, people getting paid to say random crap.

 

[diamondback8]

From what i've been hearing is that microsoft went to machinima and offered a deal, then machinima changed the contract to make it so that it was secret. Meaning that microsoft didn't intend in being secret.

And also the main finger should be pointed at machinima. People have trust in this company to receive unbiased reviews and information. For me microsoft was playing what I would call "a dirty trick" but machinima was plain evil by going money over people.

And also you see this thousands of times on ads in tv, people getting paid to say random crap.

Yeah, you make some good points. And the stuff about people getting paid... it's already been happening. But I guess the way this was done is where it really makes the controversy. We're finally seeing the dark side of all this.

 

[sc_shark]

big title games do this as well.. ea was paying for bf4 "good reviews" so what would make you think xb/sony are not doing the same?

 

[Dom0411]

Oh man, that rumor about MSFT is downright wrong. Bribery at work. Well, we'll have to see what Microsoft has to say about this. I also saw Boogie, the popular Youtuber, said this stuff happens a lot more often than we think. marthyrocks might be right that stuff like this happened already and we weren't aware of it.

A lot of stuff happens without our knowledge. I guess that's how the business works.