They'll also continue to ramp up on their digital delivery of games like they are now with older titles.
They simply can't go full digital/cloud delivery as they'd cut off a large portion of their install base. Not everyone worldwide has their boxes connected to the internet nor does everyone have highspeed, unlimited internet.
As much as I love my downloadable games and soon-to-be-Cloud gaming, I do enjoy owning the physical copies. Hell, I've bought more music CDs this year than ever before.
Also, what happens if you are without internet for a period of time for whatever reason...no gaming. Sure you could go outside but what if a storm is what knocked out your internet? Can't go outside, your cable/internet is knocked out but power is on.
This then begs the question how the games will be delivered. Will microsoft run it's own store to buy all games? Will Microsoft then ask publishers to pay them more then they already do? If not, or if it's less then what htey would have to pay retailers will consumers see a price drop? ( doubt it ). It will be interesting to see
plus, i like having my game in my hands and knowing that i can play it 10 years later given i have my console. cloud storage, game could be gone a year or two even though we did pay for them. just sayin...
Give me disks.
They won't use Blu-Ray. They don't want to give any money to Sony to license it. Same reason why the Xbox d-pad sucks, they didn't want to pay Nintendo or Sony to use their designs.
2) let us keep our old gamertags
3) BACKWARDS COMPATITABILITY.
The only place I can conceivably picture a pure cloud working is in a dense market with good internet infrastructure, like Japan.
I find it hilarious that we are living in a world just as bad as 1984 or Brave New World, yet nobody notices it!!!!
Brilliant.
For the same reason they didn't start using hard drive installs so developers wouldn't be handcuffed to a 7GB limit, because Microsoft failed to make the part a standard function of the original console.
I do hope this Next Xbox comes out next year.
I will never ever buy a game that I can not play without an internet connection, screw DRM and screw the could. Great for backing up documents and what not but not for storing stuff I have paid for and can not use without it.
I would still always buy the discs though because i like my collection of 100+ 360 games (plus all the other consoles and games) and I want to beat that when we go next gen. Seriously though, my apartment looks like a gamestore!
Also, I would be all for digital distribution on consoles if they were even close to being competitively priced relative to physical media. I understand why they are not, because digital does not cost in terms of storage space, and more importantly, there is zero competition, with console stores being monopolies, but until they adjust that model, I'll continue to buy physical copies.
What I really, really want is more online stores available on consoles. Could you imagine D2D, Steam, Impulse, Origin, and Amazon all having presences on the PS4 or 720? Digital distribution would skyrocket, prices would drop, and Microsoft/Sony would make a ton in licensing fees.
The company that tries to hold on and maintain a monopoly over their content is going to suffer. If someone breaks out and embraces services like Steam, and finds a way to really tap into the MMO market, then they're going to leave behind those that stick to the traditional approach.
My speculation is that Microsoft is going to start needing to get their hands dirty (or dirtier) and pushing ISP's (or the government) in the US to be more competitive in speed/pricing and help them find ways to eliminate data caps if cloud gaming is going to happen in any sense really.
Gamers in MANY MANY areas of the country are going to be completely fucked just by their location on the map because of this because of speeds alone, before they even start pushing those caps.
Will they? By being a hybrid they can leap over blu-ray technology. People with fast internet can just get HD on demand. People that care about graphical fidelity, don't have a fast internet connection, and aren't using a PC would probably be a pretty small market.
I still think it was a stupid decision not to make all 360s hd-dvd players. It wouldn't have cost them much and it would have cost Sony a whole lot of money.

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