I've always liked the concept of the XMB, all the way back to when I first got my PSP, but it suffers from a few core design shortcomings that make me think it should be dropped for the PS4. The core idea of the XMB is that most media browsing UIs are essentially different means of showing hierarchical lists.
Think about how an iPhone's Music app UI works, you have tabs along the bottom to switch between lists of artists, albums, etc. which would count as the first level of hierarchy. From there if you chose say the Artist tab, you'd select an artist, drilling further into the app's information hierarchy until eventually you reach the deepest point by picking a song.
The XMB's stroke of genius here was to plainly show that hierarchy with a standardised, universal presentation. At the top level you have a horizontal list of icons denoting different types of media—the top level of hierarchy—from there you drill down into vertical lists to further explore that hierarchy, that's all there is to the XMB.
But there's potential issues here, what if you wanted to show a grid of information? Surely that would be faster to navigate than a simple list? Compare the speed with which you can type on the standard PS3 on-screen keyboard versus the scrolling list of letters on the new PSN store to see what I mean.
The more glaring issue with the XMB is that it restricts the display of any given item's information to an icon, title and subtitle, often restricting the display of anything but an icon to the currently selected item. So if I have my list of friends and I want to quickly see who's online and what they're playing, I have to cycle through every single one of my friends to check this. Even then a lot of the information I want to see isn't displayed at that top level so I have to select every one of my friends and wait for their player card to load.
Also it lacks a certain personality, white icons on a background can be kind of boring to look at after 6 or 7 years.
Basically my main issue with the XMB is that it's core design principles are often too rigid. It restricts the display of information in such a way that you don't get to see much at once, it's slower to navigate, and it's kind of a little bland looking.
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