Microsoft and Machinima Stealth Marketing for Xbox One on Youtube May Violate FCC Regulations

This might spell a lot of trouble for them, guys.

Posted By | On 22nd, Jan. 2014

xbox one amd

Microsoft’s public perception with the gaming public, which was at an all time high after the initial success of the Xbox 360, began to take a nosedive in that console’s later years, as Microsoft repositioned the machine as a casual media center, and began to focus too much on peripheral apps and experiences instead of core games. Then after last year’s initial Xbox One reveal, it took a beating.

It follows then, that Microsoft wants to reverse its image, but the way it has apparently gone about it is underhanded, sneaky, and even illegal. If true, Microsoft may find itself in a lot of trouble.

Ars Technica reports that a leaked document reveals that Microsoft and Machinima are paying popular Youtube personalities to speak about the Xbox One, preferably positively, at worst neutrally; while endorsement deals like this are far from outrageous, they are usually accompanied by a message or notification that the content is in fact paid for, sponsored, or just flat out an advertisement.

But, the document Ars Technica has specifically says that “video creators may not say anything negative or disparaging about Machinima, Xbox One, or any of its Games, and that must keep the details of the promotional agreement confidential in order to qualify for payment.”

This is a clear violation of FCC rules that mandate that every advertisement or sponsored message is clearly labeled as such, and Microsoft and Machinima may find themselves in a world of hurt if this is true.

Responding to the increasing controversy around the incident, Microsoft and Machinima released a joint statement earlier today:

“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.”

We’ll keep you updated on the story as it develops.


Amazing Articles You Might Want To Check Out!

Keep On Reading!

“Halo is on PlayStation Going Forward,” Confirms Halo Studios Community Director

“Halo is on PlayStation Going Forward,” Confirms Halo Studios Community Director

Halo Studios' Brian Jarrard says the remake coming to PlayStation is "just going to mean more Halo for everyon...

Halo: Campaign Evolved’s Changes Criticized by Original Level Designer

Halo: Campaign Evolved’s Changes Criticized by Original Level Designer

Jamie Griesemer also lambasted the new sprint. “We have no vision for what this is supposed to be, here’s ...

Halo: Campaign Evolved Uses Original’s “Legacy Code” as The Foundation For Unreal Engine 5’s Visuals

Halo: Campaign Evolved Uses Original’s “Legacy Code” as The Foundation For Unreal Engine 5’s Visuals

Director Greg Hermann says the studio will "continue to push the boundaries of technology" while maintaining t...

Halo: Campaign Evolved Lacks PvP Because “We’re Not Trying to Replace the Original,” Says Producer

Halo: Campaign Evolved Lacks PvP Because “We’re Not Trying to Replace the Original,” Says Producer

Instead, Halo Studios is "trying to basically make something that stands kind of shoulder to shoulder" with th...

Commander Shepard’s Iconic Voice Actor Willing to Return for Mass Effect 5: “I Love That Universe”

Commander Shepard’s Iconic Voice Actor Willing to Return for Mass Effect 5: “I Love That Universe”

"I’m ready. Anytime. Krogan? Salarian? Turian? The possibilities are endless," said Jennifer Hale, though sh...

As Halo Goes Multiplatform, Xbox’s Matt Booty Says “Our Biggest Competition Isn’t Another Console”

As Halo Goes Multiplatform, Xbox’s Matt Booty Says “Our Biggest Competition Isn’t Another Console”

"We are competing more and more with everything from TikTok to movies," said the president of Xbox game conten...