Digital distribution won't affect retailers, says Microsoft exec Options

[Xbox-Scene]

Digital distribution won't affect retailers, says Microsoft exec Posted by XanTium | November 14 15:24 EST

From gamesindustry.biz: [QUOTE] Microsoft's casual games boss, Kim Pallister, has told GamesIndustry.biz that he doesn't believe the growth of digital distribution will have an effect on retailers - at least not in the near future. "Number one, most of the digital distribution today, the vast majority of it is done in places like the casual games space where the download size is not so formidable as to limit that. We're still a ways away from a six gigabyte image being something you can easily transfer out." "So in some ways, it doesn't overlap. It also grows the industry in different ways; it allows for titles that maybe couldn't do the volume for an individual retailer to justify the shelf space." When asked about the possibility of full size Xbox 360 games being distributed digitally, Pallister replied, "Will we eventually get there one day? Possibly, but it's quite possible that the games grow in size and outsize the bandwidth growth or whatever." [/QUOTE] Read More: gamesindustry.biz

[MeanMF]

They're already offering multi-gigabyte downloadable HD movies...Why would a game be any different? If anything, they get more money from the games to pay for the bandwidth.

[47_M450N_47]

That's what I'm thinking...An HD movie will probably be larger than a game to download.

[mikeraach]

This still baffles me. The PS3 comes with the 20gig or you can upgrade to the 60gig. The 360 comes with no hd, or you can upgrade to a 20 gig hd.

20 gigs??? Surely they had thought about the movie/tv distrobution and possably even downloadable 360 games (as they talk about in this article). Why only 20 gigs? Thats a movie, a few episodes, or a game. What a great value in purchising this 20gig 'upgrade' that'll have no use because for any real use, you'll have to really upgrade.

PS3 wins the hard drive round...but that may be about it.

[twistedsymphony]

He talks about how there's no real overlap because retailers wouldn't want to be burdened with the excessive amount of small profit "casual" games.

I'm curious why they aren't able to just setup a kiosk where you plug in a memory unit, insert some cash or maybe you enter a code you paid for at the register and have a game downloaded to your MU... it would certainly be beneficial to those without an internet connection, not to mention it wouldn't really take up any additional space for retailers since they already have kiosks setup.

[0794]

They of course can't come out and say that they are getting closer to bypassing all of the middle-men for game distribution - talk about significant negative feedback. It will be slow and subtle, and before you know it, full-size games will be available in pure digital distribution and the retailers will be wondering what happened. They, too, will have to evolve or become extinct.