Tuesday, June 2, 2009

E3-2009: Xbox offers on-demand video games

Friendly Computers just found out that Xbox 360 plans to release 30 big name games to be available for download. Although the games are not new titles, downloadable games seems to be the direction the market is heading. Read on to find out more…

Microsoft ran out of time during its press conference yesterday and instead saved news about its on-demand download service for Xbox 360 games for a luncheon following the press event.

But the news is pretty significant because it further charts a course for the industry toward downloadable AAA games for the next gen consoles. We've had downloadable games for the PC for five year or more, but the console download business has been largely light arcade games, smaller titles or expansion packs and other extra goodies. PlayStation Network also has downloadable games but they are of an older variety or some games specifically built for the PSN.

But Microsoft announced Monday that come August, they would start selling about 30 big name games at retail value for download on the Xbox 360. These are somewhat older titles, at least a year out of date but they are top notch games including: Assassin's Creed, BioShock, Call of Duty 2, Crackdown, Mass Effect, and Oblivion. Pricing will be consistent with retail prices but you will be able to pay for them using a credit card instead of Microsoft Points.

I talked with Microsoft execs last night and they said they weren't motivated by the desire to reclaim lost used game sales revenue. In fact a good number of the games they're selling will have generally left game shelves a long time ago. But they want to be able to offer games even if they've lost their place on game shelves in traditional retail stores.

Still, retail outlets should be concerned. While these aren't downloadable games available on day 1, they represent a shifting tide toward full downloadable content. First, it's older games more than a year old. Then, we'll probably see games only 6 months old. Eventually, it would have to be games available on day 1, as many are for the PC. And then goes a lot of that of that used game sales revenue.

In talking with GameStop, they know this is coming and while they insist retail is going to be around for a long time, they too are planning for a digital future. The economy might be accelerating the process but this is where we're going. We'll see if GameStop can keep up.

Source: http://www.sfgate.com/cgi-bin/blogs/techchron/detail?entry_id=40996&tsp=1