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Forums - Microsoft - Microsoft: Digital Distribution Will Outstrip Physical Sales

slimeattack said:
Digital distribution won't overtake physical sales within the next 10 years. 100 mbps internet connections aren't that common outside the US and Japan, harddrives aren't universal either (Arcade).

 

How behind the times are you.

Currently using a nice 20 Mbs connection in London !

Lets see an 8 Gig game would take approx 1 hour to download. Thats not unbearable takes me twice as long to drive to the shops and buy the physical media.



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soccerdrew17 said:
Sqrl said:
kitler53 said:

don't forget about space and efficiency. I have 3 bookshelves in my living room just for dvd's. although i do love my movies i'd prefer to get rid of them in favor of electronic copies just like i did with my music. and i love the search features for finding my music, beats the hell out of searching the shelf for ten minutes to find that one CD you want to listen to. I want those convieniences for my movies too. xD

 

 

Yes very true, an alphabatized list on your console is a lot more conveniant and space efficient than a bookshelf with game boxes on it. Not to mention that all you would have to do is sit on the couch and pick up your controller to play any of your games. You just start up the console and pick the game from the menu, no ejecting one disc and putting in another and then putting the boxes back up on the shelf every time you want to play a different game.

Hard drive space really isn't an issue either if they are designing a console for DD. Right now you can get a Seagate 1TB drive on newegg for $180 and that has enough space to hold twenty completely full BR discs. By the time the connection speeds get to the where they need to be for the average consumer the drives will have grown considerably, we may have even switched to solid state drives by then.

Speaking of solid state drives I also want to point out that games will load faster from a drive, particularly if we are using solid state. Current SSDs are already around 250 times faster than current HDs and HDs are faster than disc drives.

I really don't see any drawback to DD system other than that people will have to get used to not owning a physical disc. While at the same time the advantages are enormous; reduced living room clutter, no need to swap discs to play games, much faster game load times, games cannot be stolen, cannot be lost, cannot be broken, and it will help put more money directly into the pocket of the developers by reducing their costs immensely. The effect of which would be that expensive HD games are a lot more sustainable because developers don't need to sell as many copies to break even.

Remember that not only does this increase the amount from each game that goes to the developers it also removes the need for manufacturing which means more of the money they recieve will be profit. More profitable games means developers who can afford to try new things, one of the reasons we have sequels coming out of ears right now (SC4, GTA4, MGS4, RE5, etc..) is because massive HD games are an extremely risky proposition.

the $180 hard drive is too expensive and too small.  although within two generations i expect tthe dd to be all but useless.  time solves so many problems with technology.

ssd is too expensive to think about right now, but it hold lots of potential.

 

First 1TB would be more than sufficient today, the accessability of the price is debateable but if you would prefer you can get a 750GB drive for $120 which would also be sufficient.  Keep in mind that average game size, including PS3 games, is at about 10GB, which would mean room for 75 games..I don't know many gamers who own 75 full-price games (ie the ones that would take 10GB) for a single console let alone like them all enough to want them all on their drive all the time.  The cost issue is something that would actually be further reduced just by the use of the drives in this application. 

As for SSD, I agree they are too expensive right now, but I don't think anyone expects them to be in use tomorrow.  We are quite clearly talking about future console generations so discussing what is too expensive now is frankly shortsighted and missing the point.  What we do know is that annually the costs are halving and capacities are doubling.  At this rate in 5 years the current 256GB SSD which costs around $6,300 will cost $200 and store 8 TB.

What people aren't quite understanding I think is that while storage space is going to continue to increase on a ridiculous curve the size of games will not increase at that same pace for several reasons.  The costs of creating the art assets at current resolutions is already immense for developers and is proving to be a difficult business model as it is, but it will also be unable to keep up because another quadrupling in texture resolution provides diminishing returns for the increased cost in time and money.  Game sizes will continue to grow but they will not keep up with the storage solutions for practical reasons.



To Each Man, Responsibility

Again - size has *nothing* do with piracy.

If I was going to pirate a Wii game - the internet would NOT be what I would use. I would head to one of the many retail stores that sells pirated games - pre-burnt on a disc (or cartridge).

The best way to avoid piracy (for now anyway) is to simply get rid of physical media. Its a lot easier for people to head out and buy a CHEAP (i.e. pirated) version of some game, than it is for them to hunt down & install warez (on a console!).

Its not that it becomes impossible - its that it becomes much harder for the average person to pirate significant amounts of software. Especially when "online" consoles can be patched at will to block software or updates.



Gesta Non Verba

Nocturnal is helping companies get cheaper game ratings in Australia:

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Groucho said:

Do you guys even realize how much "bandwidth" a semi-trailer full of BDs, travelling 60 mph down the highway has? A heck of a lot. Bandwidth is indeed an issue, and will be for a loooong time coming. I can take a single CD to work and have "transmitted" 600 MB 10 miles, in just 20 mins. 30 MB/min == 500 KB/sec. That's more than the limit of the best available downstream household DSL connection (the limit is usually about 3 Gb/sec, or about 360 MB/sec after you factor in IP overhead), even in high-tech areas (which represent a minority of consumers, not a majority), and that's over an uncontested route (meaning there's not too many other folks trying to download CDs).

Now fill my pickup truck with CDs (probably several thousand).

Now fill the truck with single-layer BDs (~40 CDs each). Or fill 40 pickup trucks with CDs -- how many CDs do you suppose that is?

Now how about I drive a semi-trailer truck, instead of a pickup.

Digital distribution more efficient than physical? Lol. Physical production and distribution is much more efficient, in terms fo cost, for large amounts of data like AAA-games and movies. Internet trunk bandwidth isn't increasing at some magical rate (its the "leaves" that have been growing dramatically in size in the past few years) -- it will *never* be large enough to support serious digital distribution, unless all the distribution download centers are localized... and, go figure, that costs money... a LOT of money. Digital distribution, en masse, is not only impossible from a centralized location, its financially impractical with a distributed system.

The $4/month Microsoft charges for Live probably barely covers their expenses. If they had to support full digital distribution of full-size games... it would cost a fortune, and its not going to get cheaper. This begs the question, who would pay more money to download something over a long period, even on a fast internet connection, when they can drive to town and purchase physical media for cheaper? Does MS have some trick up its sleeve that will convince their consumers to spend more money on an item that is less tangible, while, at the same time, convince their shareholders that less profit per unit sold is a good idea?

Small games, on the other hand, are a completely different story. Small is perfect for digital distribution. If the games industry starts making little < 1 GB games exclusively, digital distribution *might* be feasible, although it would still cost a bunch more than it does now.

Digital distribution of small, or few, titles works great as is. It cannot grow to overshadow physical media at this time, or any time in the foreseeable future.

 

...that being said, when the world runs out of oil, and runs out of clever ideas of how to generate power for transportation or factories, and runs out of raw materials (like... oil) to build discs from... digital distribution will be where its at... except of course that no one will be playing video games. You'll be farming instead.

I'm familiar with the old joke "Never underestimate the bandwidth of a station wagon full of [insert media] going 60 mph down the highway.", and it's very true.  There is substantial bandwidth in the transfer of large quantities of physical media, but nobody is saying there is more bandwidth over the internet to the common household (although there is larger bandwidth for some setups).

I would love for you to provide some example of how physically making each disc and shipping it all over the world is more cost efficient than digital transfer to each home.  You seem to think localized data centers are a thing of the future but in every region of the world there are already data centers that rent out space and enormous bandwidth for these purposes to companies with needs just like these, if these data centers weren't cost effective they wouldn't exist.  This is of course not to mention that a torrent network could be established using the network of consoles to their advantage. My point being that their are numerous ways to tackle the issue whether it is with brute bandwidth from a centralized location, localized servers, or some other out of the box solution like torrents.  Where there is a will there is a way, it just so happens that we already know of several ways to do this particular task.

In fact your claim that internet bandwidth will "*never*" be adequate for serious distribution is false on its face.  Simply looking at Direct2Drive and services like Steam already offer digital distribution to millions of people, and they offer these services at the competitive industry prices or lower as is often the case with Steam.  Hell steam is usually able to saturate my internet connection. That link is a shot I took a while back when AC came out, and keep in mind I live in an area surrounded by corn fields.

The fact that the $4/month MS makes barely recoups their costs is hardly important to the consumers when they are also charging for all manner of things from their store.  The amount they make from XBLA and XBLM more than recoups the cost they spend on bandwidth, servers, and maintainence while simaltaneously generating a tidy profit for the creators of the content that is sold as well as themselves.

You asked why people would use digital distribution and as I've said repeatedly in this thread, because it's better.  It is more money for developers, can never be stolen, lost, or broken, never requires you to change discs to play a different game, doesn't take up space in your living room, you can play the game 2 minutes after its launched rather than waiting in line at the mall, etc...etc...

Again I point out that while the technological factors are not 100% in place today this discussion is quite clearly not about today but the future of console media.  It is extremely feasible that in 10 years time, as I said in my first post, this could be a reality for consoles.  It already is for PCs after all.

 



To Each Man, Responsibility

what are talkin about .! psn has playstation classics ! downloadable games origanaly from the 1st playstation!!

stop makin blind statements



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Groucho said:

Do you guys even realize how much "bandwidth" a semi-trailer full of BDs, travelling 60 mph down the highway has? A heck of a lot. Bandwidth is indeed an issue, and will be for a loooong time coming. I can take a single CD to work and have "transmitted" 600 MB 10 miles, in just 20 mins. 30 MB/min == 500 KB/sec. That's more than the limit of the best available downstream household DSL connection (the limit is usually about 3 Gb/sec, or about 360 MB/sec after you factor in IP overhead), even in high-tech areas (which represent a minority of consumers, not a majority), and that's over an uncontested route (meaning there's not too many other folks trying to download CDs).

Now fill my pickup truck with CDs (probably several thousand).

Now fill the truck with single-layer BDs (~40 CDs each). Or fill 40 pickup trucks with CDs -- how many CDs do you suppose that is?

Now how about I drive a semi-trailer truck, instead of a pickup.

Digital distribution more efficient than physical? Lol. Physical production and distribution is much more efficient, in terms fo cost, for large amounts of data like AAA-games and movies. Internet trunk bandwidth isn't increasing at some magical rate (its the "leaves" that have been growing dramatically in size in the past few years) -- it will *never* be large enough to support serious digital distribution, unless all the distribution download centers are localized... and, go figure, that costs money... a LOT of money. Digital distribution, en masse, is not only impossible from a centralized location, its financially impractical with a distributed system.

You're kidding us if you think digital distribution isn't already logistically possible. Look at companies like Akamai which already have huge content distribution networks in place. To use their CDNs for something like games wouldn't put any significant additional strain in their network...

Heck, look at what Valve is able to do for PC games with Steam... If you think it wouldn't be possible (and easy) for Microsoft, Sony or Nintendo to do the same for console games, you're delusional.

With digital distribution, you also save significant energy by not having to make plastic DVD cases, printing labels, producing and pressing the DVDs themselves... Not to mention the savings in transportation of raw materials AND finished/intermediate products.

PS: Your truck example has no bearing here. Your truck is carrying massively redundant data (i.e. many copies of the same game), which content distribution networks do very efficiently with server-to-server communication. You don't need the digital equivalent of that truck to distribute games through the Internet. A more accurate analogy would be a bunch of motorcycles carrying a single copy of the game to each ISP, which then distributes the game very efficiently to their customers.

 



My Mario Kart Wii friend code: 2707-1866-0957

sony aren't even pushing digital distribution as much as microsoft, yet they have much more options available, and have probably got the ball rolling sooner than ms.

sony offers full retail ps3 games to download over psn, with a STRICT drm policy that prevents sharing the game on other systems. microsoft doesn't offer a single retail 360 game over xbl. sony were also first to offer ps titles over psn.

microsoft sell hard drives at an extortionate rate with only 2-3 sizes available (20, 60, 120). who would feel confident about digital downloads when they can't even afford the space? sony give the option to fit whatever space you want, at a MUCH cheaper price.

psn uses real currency, not points to price items, to me it adds a little more seriousness to what you're selling.


if you asked the average joe who was really pushing dd with these options, they would probably say psn right now.




DirtyP2002 said:
TheRealMafoo said:
dbot said:
gebx said:
Other then my giant f*&cked up statement about PSN, my points still stand.

MS isn't referring to NOW but the future, and I find it funny how a lot of people here seem ...scared??... that digital distribution might be the future and that you're $400-$500 Blu ray machine that plays game might be obsolete before it even becomes maintstream.

No worries though, I probably feel the same if I had been suckered into Sony's promises..

Digital distribution is the future.  It will start to be a reality in the next generation, and you may see diskless consoles 2 generations from now.  That's 15 - 20 years from now.  So why is MS talking about it now.  Is it to divert attention from their pathetic attempt to prop up hd dvd?

 

 

Yes, if HD-DVD had won, there is no way in hell MS would be pushing digital downloads.

 

 No, MS pushed VoD since 2006 or something. When Vista was introduced MS said something about the VoD-possibilities with it. HD-DVD was not Microsofts priority. Toshiba was the big name behind it, MS supported it. IF MS would have straightly focused on the HD-DVD, things would be different by now.

I mean Dreamworks / Paramount took 150 million Dollar to support HD-DVD exclusively. At the same time, MS was offering 45 billion Dollars for yahoo. There you see where their focus was. I know you can't compare these things, but it is interesting to see the relation moneywise. The formatwar was just a secondary theater of war for MS.

@topic:

I really love the VoD! I just downloaded Primal Fear with 420p and it took like 12-15 minutes after I received the message "the movie is playable" (my translation, I got it in German :D) I don't know about HD-Movies but it will be like 90 - 120 minutes I guess. I use a 3mbps connection. That is not very fast, even in Germany, but it works out pretty well. (one part is downloaded, rest will be downloaded while i am watching the movie)

 

I wouldn't be so sure about MS's initial support.

"We went around to everybody and asked 'Are you guys doing anything like this?' And everyone was like 'That's a million miles in the future...We can't help you." -- Valve

http://kotaku.com/385539/valve-asked-microsoft-to-build-steam-microsoft-said-no-thanks

 



Thanks for the input, Jeff.

 

 

I don't see this happening for quite a long time, seeing as the casual market is growing bigger every gen I'm sure that there's no way Nintendo, Microsoft or Sony would ignore the simple fact that a large number of people buy games with impulse purchases.

Everything is already becoming too complicated for most people out there, my sister was going to buy a 360 a few weeks ago but got confused over all the different models and HD upscaling and live subsciptions. She called me and said "I just want something that plays games like my ps2 did". This is one of the main reasons the Wii is doing so well imo, it's simple enough for everyone.

Half of the games I own, I would never have bought except for the fact that I was at the shops, had cash to burn and saw a game and thought why not.



 

 

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If it's DD, I will pay, at the very most, $20 dollars for a game, $.99 cents for a song (DRM free only) and $10 for a movie (HD and DRM free).

Otherwise I can always get the song or the movie DRM free on torrent sites, and the game (if it's on PSN or XBL), I can always skip because I can't trade and will never see any value back on it and all it'll do after awhile is take HDD space and I won't want to delete it because I paid a good amount of money for it. That's the reason I haven't bought Siren PS3.

Music has a future in downloads(iTunes shows us that), movies also have a future (I believe more in terms of rentals than in terms of buying) and games have a future as well (quirky, cheap, or casual games), but physical media is definitely needed at least mid-term, i.e. at least for the next 10 years.