Linked by Thom Holwerda on Wed 6th Feb 2013 13:29 UTC
Games "Sources with first-hand experience of Microsoft's next generation console have told us that although the next Xbox will be absolutely committed to online functionality, games will still be made available to purchase in physical form. Next Xbox games will be manufactured on 50GB-capacity Blu-ray discs, Microsoft having conceded defeat to Sony following its ill-fated backing of the HD-DVD format. It is believed that games purchased on disc will ship with activation codes, and will have no value beyond the initial user." Crap like this should be illegal. If I can't buy second-hand games at my local favourite game store, Microsoft can shove this new Xbox where the sun don't shine. Which it obviously doesn't do in Redmond if they can come up with this kind of user-hostile bullshit. You can pretty much guarantee that they have made a silent agreement with Sony to implement similar anti-user feature on the next Playstation.
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Games are expensive because they have to be printed on media, packaged and distributed. Add to that the fact that retailers will take a cut.

You are absolutely wrong. Manufacturing full retail-ready packages is dirt cheap -- literally a buck and some change. Retailers have low margins. Games are like movies.. Some cost an insane amount to make, some not so much. But they all aren't cheap. Couple that with MAP pricing and there you have your $59.99 retail price.

Nowadays, digital publishing allows for much cheaper distribution and Steam has shown that this is a success.
It would completely make sense that digital versions of games cost significantly less.

You're greatly over-estimating the cost of physical distribution. That is simply not where the bulk of the cost comes in so no, digital versions aren't and won't be significantly less.

While the balance is shifting towards digital distribution, retail still accounts for the larger part of the income of Publishers. Until this changes, games will be expensive and people will have to resort to purchasing second hand goods.

Again, retail packaging and distribution is not where the majority of cost comes from. Look at what has happened with music. Is an mp3 album significantly less than buying the physical cd? NO, and often times the digital version is more expensive. For albums where the digital version actually is cheaper, it isn't by much -- typically a couple bucks at most.

People are going to continue paying a lot for games whether they buy a physical or digital copy because how the game is delivered is the smallest piece of the puzzle.

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