Isn't Sony trying to sell this as a 'third pillar' like Nintendo tried to do with DS when GBA was still popular? Of course Nintendo only said this to cover their arses. Should DS fail, they still had the GBA. I think it was always their intention to have the DS replace the GB line.
Anywho, if Sony is selling this as another option instead of a replacement, then this might not be a big deal. Does the PSP have any real powerhouse games? Seems like a system with very respectable sales, doesn't seem to push any games or have all that many solid third party support. At least nowhere near what DS has, so a fresh approach to how they distribute games may not be so bad. I have no issues with a 'third pillar' because lord knows I'm sick and tired of all of us rewarding these companies by buying their latest update every few years.
As for distributing games through downloads, I was hearing from pro-Sony editorials right after the launch of PS2, how they would usher in a new age of internetz downloads. And how we would get cheaper games, because these companies wouldn't have to press discs or sell through a brick and mortar place. Hell, one guy boldly claimed we could literally see $10 games. I'm amazed how wrong these 'professionals' always seem to be. I knew then, that game prices would not change. The companies would just pocket the difference. And this is what is happening here. As cool as it is to DL a game, who really doesn't want a physical copy of it? Especially if you're charging the same amount. Hopefully they have something in place like Nintendo does, they know what you DL and you can redownload it should something happen, free of charge.
Apple seems to be doing this right. As clustered as the App store is, the DL service is rather seamless. And cheap. I can live without a physical copy of a game (iPhone and iPod Touch have games that really look amazing unlike most cell games) when you're paying $5-$10 a game. Of course Apple doesn't have anything in place like Nintendo does, as far as I know. Any game you DL will have to be backed up on your computer through iTunes. Should something happen to the phone, Apple doesn't seem to have anything in place to allow you to redownload for free.







