Quantcast Disc-free Future for Game Consoles? - Ozymandias

Disc-free Future for Game Consoles?

Some of you may recall Peter Moore's comment earlier this year when he described what he saw in the future of game regarding Electronic Software Distribution, or ESD for short. To quote:

"Years from now, the concept of driving to the store to buy a plastic disc with data on it and driving back and popping it in the drive will be ridiculous... We’ll tell our grandchildren we did that, and they’ll laugh at us.”

Appears Sony is jumping on the bandwagon as well, with this Wired story in which Phil Harrison of Sony is quoted as saying "I’d be amazed if the PlayStation 4 has a physical disc drive." (There's a bit of irony there since a disc-less future seems to be a bit at odds with the "future proof" messaging we've heard lately around Blu-ray and the PS3, but let's ignore that for the moment.)

What strikes me about all this is that the future is indeed coming, and I think it may well be here sooner than people expect. For what it's worth, I agree with both statements above... mostly. I do believe ESD is going to be a huge component of the gaming industry in the next few years. That said, I don't think retail is going anywhere anytime soon... nor do I think it's likely the next generation of consoles will drop physical disc drives. Here's why.

You hear a lot of theory and excitement about ESD "cutting out the middleman" (also known as retail) and "allowing developers direct access to the consumer." The problem is retail stores play a huge part in this business of getting both hardware and software into consumers' hands, and I don't see a future where retail won't be involved. First, retailers play a big part in aggregating, marketing, and promoting content. Simply put, they're a one-stop shop for the sort of content you as a gamer are looking for. Second, I just don't see ubiquitous broadband access into all of the homes this business wants to sell to five years from now. It's just not going to happen, and no console manufacturer is going to abandon a huge chunk of the market by removing a physical drive that allows offline customers to buy and play games. (Sure, there might be a huge focus on the online aspects of gaming and community... but totally abandoning those poor souls with fat wallets but no broadband? Unlikely.)Finally, and perhaps most obviously, retailers sell the hardware you play on, right?  We're a long ways away from you being able to get a physical console delivered digitally (though those new 3D printers are a pretty cool step in that direction!)

That said, don't think I'm down on ESD. I do think it's the future - but I think it's further off than Phil might promote with his disc-less PS4 quote. We all see Steam's success for Valve, and imagine Xbox Live's Marketplace and Arcade as harbingers of the future. But we still need someone to aggregate and market content and be that one-stop shop for the majority of what you might want to buy. Valve is cool technology, but has a limited selection. Same with Marketplace, and Arcade. While some might buy a game directly from the publisher (especially in cases where the game is more of a service, such as MMOs), I think it's more likely that we'll see the equivalent of electronic storefronts on the web and online services that sell the majority of titles. In other words, instead of you walking into a physical store to buy Halo 4, you might just visit the EB Games or Walmart blade in Marketplace and buy it based on price.

We're a ways away from the grand vision. We need broadband penetration to become so ubiquitous it's just a "duh" that everyone's connected. And we need more consumers to try out digital ways of getting content. I think it'll happen... but it's going to take time. That said, don't be surprised if you see some pretty big steps in that direction this generation. It's going to be a fun five years. Wink

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Comments

nopants727 said:

I think ESD is the way of the future for all digital media.  As you stated, the major road block is the retailers, publishers and other middle men that want to hold on to their piece of the pie.  The way I see the future of ESD going is that downloads of games will be available on the console, like XBL, but the publishers new role will be in providing download kiosks at major retailers.  When a new game is released it is downloaded to the kiosk in advance and can service multiple customers as soon as the game is released.  You walk up to the kiosk, insert your removable storage device that came with the console(these should be cheaper and higher capacity in the next few years) and watch some ads as the game downloads which helps pay for the cost of the kiosks.  I think this model after some tweeking, can help bring down development costs(a benefit of ESD), while still reaching the majority of users without broadband and keeping publishers and retailers still in buisness.

# August 8, 2006 2:12 PM

DWAnderson said:

I think optical drives will likely go the way of the floppy drives before them. They are unlikely to disappear soon, for some of the reasons you state, but they are likely to be used far less than they used to be. I know I would prefer not to have to use any optical media!

# August 8, 2006 2:14 PM

rijit said:

I can see everything headed to cut out retailers, after all the less money made by others such as "middle men", the more the gaming industry makes. I do think y the end of this generation you will be able to download all games from Live Anywhere and purchase them on the Xbox 360 like the current Arcade Live games but you will still be able to buy them at a retail store. Same thing will happen for music and movies, if Microsoft is half as smart as I give them credit for. All it would take is the right partnerships or content provider deals. That would so push the 360 over the top.

# August 8, 2006 2:29 PM

WiNG said:

While I do agree on ESD having to get more and more relevant in the future I still see the Digital Discs being used for a long long time. After all, if a downloadable (legal ovbiously) copy of a game I want its still priced the same, or very similar, as the retail disc I will still get the last one (with all the problems they have) since I prefer a nice box with a PRINTED manual (hell, I really hate to have to read a game manual on my screen)

# August 8, 2006 4:34 PM

Ozymandias said:

Re: "While I do agree on ESD having to get more and more relevant in the future I still see the Digital Discs being used for a long long time. After all, if a downloadable (legal ovbiously) copy of a game I want its still priced the same, or very similar, as the retail disc I will still get the last one (with all the problems they have) since I prefer a nice box with a PRINTED manual (hell, I really hate to have to read a game manual on my screen)"

It's interesting - I would have agreed with you years ago, back in the day of PC games having real manuals you could really sink your teeth into. (Heck, I used to help write those at SSI!) But since the manuals have devolved into what are pretty much pamphlets, I'm not sure I'm that worried about having a manual as much these days.

I'd probably think differently if real manuals came back, but I don't see that happening. :(

# August 8, 2006 4:57 PM

RealWeaponX said:

Currently my ISP has a fair use policy of 50GB transfer per month (which I breached last month by 120GB, but hey...) meaning that in the next generation of console games, which I imagine would require maybe 15-20GB per game, I would have an extra limit on how many games I buy per month. Sure I might be able to afford the sticker price, but can I afford my excess bandwidth charge on top of that?

In addition, those of us who buy way more than the average amount of games are going to store these titles where? Presumably on the Xbox 3 or Playstation 4 hard discs that we will be paying well over the odds for to make up for the loss they'll be making on the console, and even a 100GB disc will fit maybe 10 games on at most, and you can guarantee you wont be able to use a standard hard disc connected by USB or FireWire. The only other way to deliver the content is by streaming as you play, but again this relies on everyone having excellent high-speed broadband, and means you can't play *any* games when the network is down.

In addition, there are some people who just point blank refuse to use any sort of digital distribution, for pretty good reasons. Way back in the late 80s, when I started getting into games (Atari STFM ftw!! Half a *meg* of RAM!!) when I spent my small fortune on a game I was safe in the knowledge that were I to power up my Atari today I could play that game, even though most of the publishers from back then are either dead in the water, or consumed by the Leviathan (EA...), and the same is true of my PC, XBOX, GCN, GBA and DS titles. But what happens if (in the unlikely event) Valve goes *** up? Can I still get my copies of Half Life downloaded? Unlikely. Sure they give you the option of burning it to DVD, but what if you didn't? You've wasted your money. Same on the console. If you delete one of your games to make space, and the publisher goes bust, can you ever get the game you paid for again?

Digital distribution may well be a publisher's and console manufacturer's wet dream, but for the forseeable future, there are far too many ifs and buts at the consumer end for the end users to have confidence in this sort of delivery method on such a large scale.

Having said that, 5 years is a long time in the computers and communications industries.

# August 9, 2006 12:15 AM

JRA said:

In other words, instead of you walking into a physical store to buy Halo 4, you might just visit the EB Games or Walmart blade in Marketplace and buy it based on pricE"

OMGorrzz HALO4 confirmed!

... you'll regret saying that ;)

I would love to see ESD arrive soon BUT I would like to see a dramatic reduction in cost for it- the logistics and costs decrease significantly so the consumer should benefit- I doubt that would happen which is a reason I would be against it.

Hell we've moved from Cartridge to Disc based media and it hasn't decreased a penny- complete rip-off, it's time somebody did something, but what?

# August 9, 2006 2:32 AM

imaginedbug said:

ESD will be important, no doubt about that, but people will then still want to be able to make backup copies so should their computer/console die and go to computer or console heaven, they won't have to sit and wait for the games to get downloaded again.

For that reason, if not for resale or gift-giving, a great many people, myself included, would rather buy a game on disc in a simple jewelcase or Amaray DVD box. Would you want to give someone a download for his/her birthday?

I use ESD a lot, especially software like Adobe's Creative Suite and what used to be Macromedia's Studio (MX, MX04 and 8), plus all the plug-ins for Photoshop that I've bought. It works great, and if there's a decent help file with the software you don't need the stupid manuals.

Why does that work? We can LEGALLY make our own $0.50 backups.

Games however, at least those downloaded on a console can't be backed up, legally or illegally because the consoles don't have any "burning" ability for CDs or DVDs. And quite often the help information is so limited in-game that they might as well replace it with a customer support phone number to call for help figuring out the controls, or a web address to download a PDF-manual onto your computer.

# August 9, 2006 7:16 AM

maynard said:

Give us a RW drive in the next xbox and we can download our games and burn them directly to a disc.  I'm sure MS can create some type of protection so the disc can't be "re-burned" or you can't store the information anywhere to burn multiple discs: The information would simply stream directly on to a disc and not the hard drive.

It may not be possible today, but could be in the future.  This could also contribute to the longevity of formats such as blu-ray and HD-DVD, thus still giving them some value in tomorrow's market.  This could even be possible with DVD's, if we were to be able to hook our DVD player up to the internet.  You could also nearly eliminate the need for a hard drive in consoles.  We would, of course, still need somewhere to store our saves, but that's it.

This way, you can keep stores like EB and Gamestop in business by having those stores distribute the media.  And, if people choose not to take such a route, they could simply go to a store to buy a real disc, or have EB deliver it to them in the mail.

# August 9, 2006 8:21 AM

Dissent said:

Ozy I think broadband is more penetrated (lol) than you think. I'm a graduating senior in college this year and almost everyone i know has broadband in their rooms or appartment. I would much rather have high speed internet than a sattelite service or even a local phone service.

I mean teens and 20 somethings are the videogame market right?

# August 9, 2006 10:03 AM

imaginedbug said:

maynard might be onto something... however, you couldn't lock the burnt data to a profile or console because:

- multiple profiles per family or even per person (to get downloads that're exclusive to other countries)

- consoles don't last forever, and a replacement console shouldn't mean re-buying all your games

- visiting friends and bringing your games along wouldn't work anymore

You'd tick off more people than you'd help. That's why Sony's plan (hopefully dropped by now) of making games locked to a console or person to prevent resales won't work.

# August 10, 2006 1:51 AM

Ozymandias said:

Re: "Ozy I think broadband is more penetrated (lol) than you think. I'm a graduating senior in college this year and almost everyone i know has broadband in their rooms or appartment. I would much rather have high speed internet than a sattelite service or even a local phone service.

I mean teens and 20 somethings are the videogame market right?"

Yep, but when you look at surveys of the US (for example), you're looking at maybe 60% of folks having it in their homes (although more could have it if they were willing to pay). I'll need to look up the most recent numbers, but we're nowhere near close to 100% of people actually having broadband installed and running in their homes.

WiMax and other wireless technologies may do a lot in the next decade to help that, though. And to be clear, I do think at some point having go to a store to pick up a plastic disc to play a game will just fade away. But it's not going to be for the next generation of game consoles IMO.

# August 10, 2006 9:00 AM

Maynard said:

Imagined... you may have slightly misunderstood what I was trying to say.  

I'm not saying that you couldn't use the disc you just burned off the internet in another console or with another profile.  I'm saying that the disc would have to be protected somehow so that you couldn't burn the disc again.  Thus avoiding having one friend pay for and download the game and then everyone else just burning a copy of it.  You could, of course, play the original burned game on another console.

I'm not the most informed when it comes to that sort of protection, but it seems like something that can be done.

# August 10, 2006 10:51 AM

Stylenation said:

A good first step would be to sell the Xbox Classics from the Marketplacee or other old xbox titles for a descent price. I would never go to a game store to buy UNO but it's a hole other thing to do it from my sofa and I have the same feeling about old games. You been playing your games over and over and there isn't any new on the horizon, so wouldn't it be nice to find a list of old xbox classics on the marketplace for instant download. That would hardly affect game retailers like GAME or EB.

Do the iTunes Musicstore have bad or good influence on the iPod sell? I didn't buy my iPod from the Virgin store. And I didn't buy my 360 from a EBGames store. I bought it online. Retailers will still be there like we still got the record stores but they will not be a reason for not expanding the disc free gaming. We are downloading 1GB demos and trailers and the broadband Live subscribers are increasing every day so I can't see why we shouldn't be able to buy a full game very soon.

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