Why a new set of consoles in 2010 wouldn't be good for anyone

[Resident_Hazard]

I just want to point out that full-on digital distribution is still a long ways off. Cable and DSL modems are running at about the highest capacity that technology can handle, and it'll be a while before that's completely replaced by something like high-grade fiber-optics. The point is, digital distribution of "8th generation size" games is simply illogical because no matter what, you'd be waiting ages for the games to slowly trickle in to your machine.

On top of which, if any console maker decided to go heavily focused on digital distribution, you can bet your ass you wouldn't be able to buy it at places like GameStop, EB Games, or even other places. Sony had toyed with the idea of making the PS3 locked so used software cannot be played on it. This was a threat they made over the toying Best Buy was doing (at the time) about possibly selling used video games.  As I recall, Sony's toying with this idea was met with harsh criticism from gamers and retailers alike.

Face facts, used games are big, big, big business and digital distribution would be disastrous to the gaming industry at this point. If a store can't make any money on a console with used media, they aren't going to bother with it at all. Don't think retail outlets carry much sway? Think again. Sega's foolhardy surprise early release of the Saturn pissed off some places, like then-still-relevant KB Toys, so much that ALL Sega merchandise started being pulled from the shelves. That's an impact Sega surely felt.


There's also the third party companies to consider. True, their profit margins go up a bit with digital distribution, but at the same time that means handing over near total control of your product to the console maker. That return to the Nintemperial-like days of the NES where Nintendo controlled the games, number of releases, number of cartridges, and everything else is not something 3rd party companies are going to want to be a part of.

The bottom line is the secondary market, which thrives better for video games than pretty much any other facet of the entertainment industries. There are typically more GameStop's, EB Games', and Game Crazy's than there are Half-Price Books stores or Cheapo's (used music, local to American midwest).