Only hard drive size holding 360 back
New GOD service a worry for retailers.
Digital releases of Xbox 360 titles are only being held back due to the storage capacity of the console's hard drive, according to Wedbush Morgan analyst Michael Pachter.
He also said that retailers will have no choice but to accept a service offering digital releases day-and-date with the High Street, as Microsoft's publishing partners are likely to back such a service.
"I don't see the timing between new release and digital download being a function of anything other than hard drive sizes," offered Pachter, speaking exclusively to GamesIndustry.biz. "I think as soon as we have large hard drives - think the rumoured Project Natal 'new' Xbox 360 with a terabyte of storage in 2010 - we'll have day-and-date downloads."
Microsoft is due to launch its Games On Demand service in August, but will initially limit the series to best-selling older titles including Crackdown and Assassin's Creed rather than new releases.
"I don't think that the publishers care at all if downloads are day-and-date, and in fact, my guess is that many publishers favour such a model. It's true that retail partners wouldn't like it, but it is not necessarily true that they would have much to say about it," added Pachter.
Suggestions that retailers may be unhappy to sell the hardware without software are off the mark, said Pachter, who highlighted Apple's iPod business as evidence of such a market being lucrative for both.
"I don't see how they could scream too loudly about day-and-date downloads, unless the price for the download was lower than the packaged product price," he offered. "I don't see any retailers refusing to sell iPods, even though all the content on an iPod is distributed digitally.
"Much in the same way, while retailers may baulk at the possibility of day-and-date downloads, I don't see too many refusing to carry Microsoft product in retaliation. Should a retailer boycott Microsoft, I think that the full force of the publishers would be brought to bear on that retailer, and they would find themselves starved for product."
Microsoft has promised around 30 titles for the launch of Games on Demand with new games added every week.
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Comments (72) Latest comment 3 years ago
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"We didn't want to offend our retail partners by reflecting the massively reduced distribution costs in the price. All that extra profit is lovely though, thanks for a cracking excuse guys."
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Is that for real?? it simply doesn't make good business sense if folk know this sort of thing!
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i'm very interested in Sony is going to handle to the discless PSP regarding older games
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"Selling a £20 HDD for £130, like they are at the moment just isn't on. They should release:
"
I assume you mean a 20GB HDD, in which case it hasn't been that for years - 60GB is £60, with mic, 3 months Live and ethernet cable:
[link url=Selling a £20 HDD for £130, like they are at the moment just isn't on. They should release:
]Xbox Live Starter Kit[/link]
Still far too expensive for what you get though - if that was the 120GB drive in there, that would be better, but they need to start upping the capacities . By all means keep the pricing the same, but Microsoft should keep increasing the sizes - they should sell 120GB (or 250GB tbh) and then a 320GB or 500GB for £100-120.
Also, I'm very very wary of these digital downloads. IF it means prices are brought down a little to reflect the far lower costs (and the fact that you don't have suppliers, distributors and retailers taking their cut), then all well and good, but I can all too readily envisage full RRPs for months after physical discs have been discounted by 20-50%. Which also have resale and lending value.
And digital downloads will pretty much spell the end of cheap bargains after Christmas or when Play or Amazon have huge crates filling up warehouses they need to get rid of - no competition and no stock issues means no price drops.Yes, Microsoft may be able to convince publishers/devs that fewer sales at higher prices will be roughly equal in terms of monetary gain, but it also means smaller communities, which will die off sooner, resulting in fewer future DLC opportunities and fewer sequel sales.
/rant
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Downloading gigabytes of data is not a problem for many us, but that's not to say all of us.
And honestly, when people moan about the 15 min install times on PS3 games, how are they going to take to spending a far greater amount of time downloading the latest blockbuster from XBL or PSN ?
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Why on earth will anyone want to buy a digital copy at the same price as a a physical copy? the only way digital distribution is going to work is if it is cheaper than gamestation and GAME. I do buy alot of my games for PC on steam because they have pre purchase savings and gifts while also being generally cheaper than retail high streets. If Microsoft follow this kind of business model, perhaps it will work but i do not think digital distribution will ever be a replacement, just an alternative.... except for the new PSP which quite literally blows my mind with its complete lack of a UMD drive!!!
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I for one am a happy bargain hunter; i carefully explore all known and trusted websites within and outside of the EU and then choose the cheapest game from there. This way i have managed to buy almost 60 games for the 360 often 30-40 euro's cheaper than 'RRP'. In some cases i could buy new and sealed games for a mere 13 euro's while RRP was still standing firm at 49,99 or something.
With digital distribution i can't see that happen anytime soon (judging by the prices at XBLA right now). also..though i never do it, selling your games second hand is also out of the question. Now i know a lot of gamers here like to sell their old games and get some cash back for new purchases. ...not possible this way (at least, that would be my guess).
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Scary first steps for the industry though - look what happened to the Dreamcast when it tried to do the online-console thing before the world (and the infrastructure) was ready.
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As for the people seriously suggesting that the reason for high digital download prices isn't retailer pressure I think you're smoking crack.
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And yes.... cheaper HDDs please, MS!
/Managed to get a 120GB drive for £70 over a year ago
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Sony did the right thing by allowing the PS3 to be easily upgraded with third party drives. I picked up a 320 GB one over a year ago for around £50. That's almost three times the capacity for less than half the price of the 120 GB HDD from Microsoft (it was £130 RRP at the time). For a company so keen to promote a future of digital distribution they seem oddly keen on making the storage as expensive and unattractive as possible. Even a 120 GB HDD is looking very small these days if you download the larger XBLA games and install games to the drive.
Maybe Microsoft should consider selling an HDD shell for the 360 which allows people to slot in as big a third-party HDD as they can afford? Knowing Microsoft they won't because they'd lose out on official HDD sales.
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The price in MS points here in France means that renting a "premium" movie is more expensive than buying the same movie on Play.com (if you wait a couple of months). And you have to watch them with crappy French dubbing (and not in the original language which even my French-speaking friends would prefer...)
So much for choice...
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No, but I would. Download MP3's are cheaper than retail CD's, so why the heck can't download games be cheaper than retail games...because the stores wouldn't like it. If an MP3 album can be approx £3-4 cheaper than a CD bought in the shop at £10-12 retail price point, why can't games be £9-12 cheaper off of the standard £35-40 retail price point?
If it's the same price, frankly I'm not interested. In the time it takes to download a full retail game, I could have gone to the shop, bought it, done a weekly grocery shop and played about an hour of the game. I would also have a game that I could either trade in or sell on afterwards, meaning that the game actually ends up costing me about half of the price I actually paid for it.
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That. That's one reason I like this service. Sometimes I like to browse through Marketplace and buy *almost* random stuff. It's nice to have the option.
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Neither can I, given such a thing doesn't exist yet.
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No, he means a £20 HDD. Although a slight exaggeration. What he means is they're selling a HDD which can easily be bought for under £35, MS are retailing at £129.99 (although it is available for
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Hmmm....
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Yes, they do. If I swap the discs between my consoles, as long as I login with the account which bought the content it is available. The only diference is that in that 2nd 360 only that user can access. And, if you just change 360's - and just have one - you can permanently transfer all the content licencing to that *new* 360, via xbox.com, that way, all the users will be able to access.
(I hope I made myself clear, though I kinda doubt it...)
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"used Halo 3?, I'll give you a tenner"
30 seconds later
"used Halo 3?, that will be £25"
Kerching!
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BTW, have you seen the prices of games recently? £55 RRP on Modern Warfare 2? Even with Amazon, you're going to have shell out a galling £45 to preorder it. Thanks v much, Activision. I now know that it feels like to be anally shafted with a broken bottle.
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I don't know where you do your shopping but that's just utter rubbish. You'd be hard pressed to even find a 20 gb hdd, let alone for 130 quid. Especially when 120gb HDD's go for about 60 to a 100 euro.
It's the top end of the laptop HDD market but not abnormal for propriety hardware. A quick look at tweakers shows me that they go from 30 to 110 euro with most of them being at 40-60 euro mark.
Also, ms have never hidden the fact that their peripherals is a very lucrative market for them. MS suckers people in with a cheap console and then sells some peripherals, sony just sells the whole package. All in all, they even each other out.
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Sony decition making on PS3 has it's ups and downs, but 2 things they got just right was making online play for free and allowing people to upgrade the hard drive freely. MS should do just that, any other option is bad for their market approach of "digital distribution is good".
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Other than avoiding a few daily disc changes there still often seems to be preciously little advantage - and sometimes the opposite - to digital distrubution of games for us consumers.
No disc, no case, no printed manual - surely they could cut a few bucks off the price, or at the very least avoid the tempation to add them instead?
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MP3's etc. are cheaper due to the format. That and because they needed to be to try and get people legally downloading them rather than pirating them.
If something is cheaper to produce (as digital downloads are; no printing costs for manuals, no cover printing, no boxes, no DVD/Blu-Ray disc and no third-party taking a huge chunk from the sale of the game (usually a distributor and a retailer, taking about 40-50% minimum of the final sale price) then why shouldn't at least part of that be passed on to the consumer.
If I could purchase a game knowing that 100% of the cost (or as close to as possible) went to the people who actually made it, and that it was a few quid cheaper to acknowledge the fact that they're making a lot more of it, I'd do it. I'm not paying the same price for something that is going to be an inferior product though (no manual, no re-sale value, no ability to loan it to a friend, no ability to take it around a mates house, nada).
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So, if they were to drop the price of the HDDs, the 360 itself would have to drop as well. I'll let you all do the logical maths for yourselves.
Do this maths while you're at it - difference in price between an 80gb PS3 and a 160gb PS3. Amazingly, they charge about the same price per 80gb as MS!
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I'd actually rather buy a digital download if the price was right, as there's less packaging and it's more environmentally friendly. But I'm not paying the same RRP for something that I know has cost a lot less to get to me.
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mainly because they make up a large percentage of the gifts santa brings people on my behalf. i can see the divorce now, when i say to the missus: 'hey babe i got you a shiteload of downloads for chrimbo. sorry theres nowt to unwrap!'
my point in the ipod thing is, the ipod has been marketed as being THE thing to have, its been that way for years with walkmans and discmans etc. i cant ever, except for handheld gaming devices, see home consoles being seen as a must have accessory outside of our circles. and finally, what of those with no consoles? if this download larky happens to film, how are they going to get movies? whether ms like it or not, physical media is here for a long while yet.
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What people are missing as well is that they're also totally different products. At the end of the day one is a retail boxed product, and therefore carries a premium. The other product is a digitally distributed product. It may be the same game at the end of the day, but the actual product is entirely different, thus the price should be.
If they sold the retail boxed game from Microsoft.com at less than RRP, retailers may (and only may, as online retailers tend to be cheaper anyway) have a point. But they're not.
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I reckon that DD will eventually end up with a healthy but 3rd place in sales, behind stores and webshops. It's nice for those into it but the masses couldn't give a rats arse or even know about it's existence.
And then there are the obvious legal and technical problems that can't be solved that easily.
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By the way, never trust HDDs, because that's why Panzer Dragoon Saga's source has been lost
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I thought Crackdown couldn't be installed to HDD?
"It's the top end of the laptop HDD market"
The problem is, if Microsoft allowed 3rd party 3.5" HDDs, then you could buy a <a href ="http://www.overcl ockers.co.uk/showproduct.php?prodid=HD-270-WD&groupid=701&ca tid=14&subcat=1279">1.5Tb HDD</a>, for only £5 more than their <a href ="http://gamestation.co.uk/ Xbox360/Hardware/Accessory/~r406566/Xbox-360-Hard-Drive-120G B/">120Gb</a> one
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Sony did that (well, 2.5" disks, but they aren't much more expensive than the 3.5" models), why can't MS?
I hadn't had my PS3 for long before I upgraded the 40 GB disk to a 250 GB model - and now you can probably get a 750 or 1 TB for the same price as I paid a year ago - while I've held back on a much needed upgrade of the 20 GB disk in my 360 because of the exorbitant price of the 120 GB disk (although admittedly if I still used my 360 much I probably would have shelled out the money by now).
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Now - come on....
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Yeah, I know it's not exactly the same, but there's still one helluva lot of markup in there for the sake of a bit of DRM.
As for downloads - well, it's inevitable, but it wont cannibalise the high street sales for a long time yet, as given the option, people will still buy physical media.
iTunes and the like have been around for years, yet CDs and DVDs are doing a swift business. Heck, sales may be down, but they are not out by any measure.
As for pricing, well, ask yourself this - why are Steam games more expensive than high street versions of the same game?
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That being said, I can't stomach downloaded media at full retail (box) prices.
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500GB is the biggest you can get at the moment for a 2.5" SATA. I've had mine for nearly a year in my PS3 and I've got just under 3GB free. Not impressed that manufacturers haven't moved on in 12 months.
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i would love to get a bigger HDD but im not paying that price
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http://ww w.pcworld.com/article/150970/up...
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@smelly
There are many games that use more space than 4 GB. Looking at the PS3, 4GB is a joke and looking at the future of gaming, it's even more of a joke.
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A shame really, as I personally prefer something tangible and I can read manuals/instructions for in various locations, not just glued in front of a screen or on a tiny display that does my eyes in!
In addition, physical media also means that you have a back-up of your games and if you treat the discs well, they'll last you for as long as you find the game interesting to play.
With DLC, the second-hand market will die, so no more selling old games on eBay or to your friends etc.
Also, one other aspect that I'd be worried about, if X360 games became completely digital, is the fact of security. If you want to retire your machine, give it to a younger sibling or pass it on or even sell it to a complete stranger, you'd need to keep the HDD content intact, right? Because your games are all DLC on the HDD.
So that means everything else you have will have to remain on there as well, unless you laboriously wish to go through it all and delete it 'by hand', which for a big drive may be a complete nightmare to do!
And would this content delivery method also mean that the subject of DRM would raise its ugly head once again?!
Think about it...
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Imo that's exactly what publishers would love to see. They receive no royalties from the second hand market, so imagine the profit they'd make by keeping the retailers out of the line, minimizing packaging costs, minimizing costs for reproduction (no media, e.g. Blu-Ray needed), minimizing costs for the console hardware itself (no expensive drive needed, e.g. Blu-Ray in the case of Sony), and forcing the customers to buy a brand new copy of the game, because there will be no second-hand copies of the game, and fighting piracy as well. The customer pays for the infrastructure through his monthly internet provider fees. While the required infrastructure may not be available at the moment (sometimes slow connections), this will change rapidly. Over here in Germany there are already a lot of 100 Mbit private connections available in big cities and there's no doubt that those type of connections will spread rapidly over the next years and until the next generation of console will arrive.
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However they have a hope in hell if i will be buying these games unless they are around £10 Cheaper than store prices. With a disk i don't need to go through the hassel downloading a game when i run out of space.
Of they are the same price they can fuck off, i will run down to the shop buy a disk, with a box a little book and whatever other goodies it comes with and save the hassel of a day of downloading, in which time i wont be able to play online because that will pause downloading, and when i buy it and find out its shit i can trade it in and get a handful of money which isn't possible with this.
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Yes there are ways around it, and don't say "use linux" (we get it you're special and superior in every way for going the way of the penguin, bravo. I bow to your smugness. No really.) as realistically most people can't be arsed with it just to format a drive. I formatted my external 550GB USB drive using third party tools so I could connect it to the Xbox for music playing or when I feel flush, streaming it via the laptop (a complete waste of electricity though). But your average user won't know the methods for doing it, you still can't store games on it and the fact the playlist is chopped to 100 songs when you enter a game is such a let-down.
So back to the original problem. MS could release a patch that adds in NTFS support and some way of locking an external or internal drive to the machine (similar to BIOS Locking an OEM OS I guess) or an HDD formatting utility that again locks it to your Xbox (done to avoid just taking your HDD to a friends Xbox and copying games). Or they are banking on broadband speed increases so that they hold the games you buy or rent from them over XBLive in a cloud-based server cluster and you can 'play on demand' with a short download time. That way you keep 5-10 games you regularly play and just remove and re-download from 'your cloud account' the ones you fancy every now and again.
Until they resolve the disk format issue then I don't think you will see larger drives being made available for the X360. Knowing MS when that happens it'll be in a big update (next NXE overhaul??) and promoted as a new feature (as opposed to it actually being a limitation - probably done to keep OS below a particular size I imagine). There is a few sites online that offer a method of obtaining a 120GB laptop drive (may have to be a specific model) for standard retail price and then going through a process for making it Xbox360 compatible (i.e an 360 elite HDD) but of course that invalidates the warranty.
MS though as always will exploit the hold they have over their end-users and whilst waiting for stocks of HDDs to run out and deciding the next step forward (i.e. everything online or increasing storage locally) they'll keep overcharging as they know users have no choice. The minute that changes this is a lost revenue stream.
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Yeah, by overcompressing all the assets so you have blocky looking videos, low fidelity sound and blurry textures. Sounds great!
Seriously though, take one of the HD movies Microsoft have as an example: the picture quality is nowhere near BD quality when comparing the same movie and the sound quality is inferior. A typical HD movie is under 4 GB, that's a lot less than the 20+ GB of a typical BD movie with HD audio. There are also no subtitles, not a big deal for some people but for those of us with hearing difficulties it's an insulting omission. Not everyone will be bothered about inferior A/V quality but if they aren't then why are they downloading HD videos in the first place? Doesn't downloading an HD movie mean you *are* bothered about A/V quality? :?
The Video Marketplace is nice for those that like to rent movies rather than buy them but it's lacklustre for those of us who want the best quality, like to collect movies and love extras and subtitles!!! That's why I don't believe that digital downloads will ever replace the disc entirely. Besides what would people give each other for Christmas if the disc disappears completely. A voucher for a three day download isn't quite the same thing is it?
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Obviously, I'm a godlike expert in this matter. My will be done!
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Still too expensive though.