Remember (us old people) back in the day when you misplaced a game cartridge? Remember how frantically you'd search in your couch cushions and behind your bed for that misplaced (again) copy of Tetris? Remember when PC's weren't powerful enough to emulate and we had to buy the carts?
The idea of "installation" v. "plug and play" used to be the fundamental difference between console and PC gaming since we stopped playing Apple IIe games from 5.25" floppy disks (you know, back when they actually were floppy). The idea of installing games has seem to have gone from an annoyance to a luxury. With current generation consoles giving you the option to "install" the games and only insert the disc to launch the game, the line between PC and console is blurring ever still. However with "Custom Firmware" and the ilk becoming more rampant, consoles are becoming more susceptible to PC-type piracy, and the only recourse developers are coming up with is entirely reactionary (see: Xbox Live bans, etc.).
There is another answer however:
There exists in this world, a wonderful little music game called DJMax: Trilogy for the PC based on the popular DJ Max series overseas. Included with the packaging of this game is what at first appears to be a USB flash drive. This is actually a truly effective (and to my knowledge as of yet un-cracked) form of DRM. This "USB Key" provides the "profile" storage system for the DJ Max: Trilogy game in that it records your saves and stores your unlocks.
The apparent nuts and bolts (to the best of my knowledge, could be wrong, been wrong before) is that this is not a "Flash Drive" but actually just a USB "device" that the game must recognize before the game will launch into a playable state. From what I can tell by scouring the internets and not owning the game myself, the game seems to seek out the device "Hardware ID" and not files or firmware on the device itself (which could easily be emulated).
You might think to yourself, "how annoying" or "what if I lose it?" Well, what if you lost your Faxanadu cartridge or scratched the black bottom of your Blood Omen: Legacy of Kain disc so bad your PlayStation just showed you memory card contents instead of even trying to boot up the game? What did you do back then? You sucked it up, that's what you did. "But, eventually we're going to have baskets of USB keys lying around!" Yeah, have you looked at your shelf full of Xbox/PS3/Wii cases that you work so hard to alphabetize and dust off every week? Ever take pictures of your SNES library and post them to show how cool you are? There is a certain sense of accomplishment about having an expansive game library. Ever look at the "game list" on your profile on Steam and feel good about yourself?
On that note, what would this do to digital distribution?
Short answer: Nothing.
Long answer: I'm not going to rip off a "Yahtzee" joke and give you a legitimate long answer. Digital distribution platforms are not the source of piracy in the industry. Have you ever found a "Steam Rip" of a game or the like on the internet and gotten it to load correctly; and if so, do you consider yourself the "average pirate" or someone that will "find a way around anything ever?" If you're the latter, chances are the industry isn't worried about you. They're worried about your idiot friend who can just download a torrent or megaupload of a game image and Daemon tools it into working properly after they hop over to "that one website" and download the exe crack (or just use the one included in the image). The industry is losing to "casual pirates," not you super-uber-MIT-level pirate extraordinaire's.
The point being is digitally distributed games and their business models can remain in place and intact. This is for the rest. The aforementioned USB "dongle" method of piracy protection could make for a much more traditional (read: functional) system of "owning" PC games. Imagine a DVD or Blu-Ray shaped PC game case that has the install disc and a snap in slot for the game's USB key (much like the old PS2 cases had memory card snap in slots). You could store your PC games right next to your PS3/Xbox/Wii games on the shelf and treat them the same (meaning you have to get up and grab the disc/dongle to play it, you lazy bum).
Will this piss off PC gamers? Of course. That being said, a method like this might be the only thing that can save the PC gaming industry from completely dying off and/or getting nothing but shoddy console ports (I'm looking at you Insert Modern Shooter Here 2). This system, as evidenced by DJ Max: Trilogy has some positives to it as well. The buzz word du jour is "Cloud Saving" (which consequently has nothing to do with the next installment of Final Fantasy VII thank god) and a USB based system can easily store your online profile settings, control settings, saves, characters yadda yadda yadda so that when you get that new bitchin' PC and reinstall your game, everything is as it was; better yet you don't have to have online systems running all the time or rely on their longevity for said services.
Is it a perfect system? Absolutely not. Can it be cracked? Potentially, but it would be much more of a pain to have 27 "USB hardware emulators" running at once, and since all profile information and settings would be stored on said "thing" one glitch and all your saves are belong to us.
From a development standpoint, the added cost of using a system like this would be far outweighed by the potential recovered profit it could bring. The major caveats of a system like this is it would have to be universally accepted and implemented as an industry at the same time (at least as quickly as Blu-Ray was) or else it stands becoming obsolete vaporware before it has a chance to be successful. This would also give the doomsayers an alternative to being forced into centralized digital distribution and as long as they have their "game cartridge" they can play their game 20 years down the road without fear of Ubisoft's servers crashi-- I mean without worries of current DRM systems becoming obsolete and breaking games (I'm looking at you Shamus). The other potential upside is the extremely non-existent nature of invasive machine-breaking DRM that currently exists (SecureROM, StarForce, et. al.), and that in and of itself might be a warm welcome from consumers that cause them to embrace this as an alternative.
Has this idea already been thought of and shot down? Maybe. Am I the genius that just saved the gaming industry? Probably not; but as a consumer I can honestly say that I would be okay with this. I own a PS3, and an Xbox (Wii coming soon) and I do "Install" my games on the systems whenever possible to prevent wear on the disc drives, but I still have no problem putting the disc in the system when I play. I would actually prefer (with flash becoming cheaper) that they move BACK to cartridges for home consoles because of the lack of moving parts. Maybe I'm crazy...
I'm probably crazy.
The idea of "installation" v. "plug and play" used to be the fundamental difference between console and PC gaming since we stopped playing Apple IIe games from 5.25" floppy disks (you know, back when they actually were floppy). The idea of installing games has seem to have gone from an annoyance to a luxury. With current generation consoles giving you the option to "install" the games and only insert the disc to launch the game, the line between PC and console is blurring ever still. However with "Custom Firmware" and the ilk becoming more rampant, consoles are becoming more susceptible to PC-type piracy, and the only recourse developers are coming up with is entirely reactionary (see: Xbox Live bans, etc.).
There is another answer however:
There exists in this world, a wonderful little music game called DJMax: Trilogy for the PC based on the popular DJ Max series overseas. Included with the packaging of this game is what at first appears to be a USB flash drive. This is actually a truly effective (and to my knowledge as of yet un-cracked) form of DRM. This "USB Key" provides the "profile" storage system for the DJ Max: Trilogy game in that it records your saves and stores your unlocks.
The apparent nuts and bolts (to the best of my knowledge, could be wrong, been wrong before) is that this is not a "Flash Drive" but actually just a USB "device" that the game must recognize before the game will launch into a playable state. From what I can tell by scouring the internets and not owning the game myself, the game seems to seek out the device "Hardware ID" and not files or firmware on the device itself (which could easily be emulated).
PCI\VEN_1000&DEV_0001&SUBSYS_00000000&REV_02
You might think to yourself, "how annoying" or "what if I lose it?" Well, what if you lost your Faxanadu cartridge or scratched the black bottom of your Blood Omen: Legacy of Kain disc so bad your PlayStation just showed you memory card contents instead of even trying to boot up the game? What did you do back then? You sucked it up, that's what you did. "But, eventually we're going to have baskets of USB keys lying around!" Yeah, have you looked at your shelf full of Xbox/PS3/Wii cases that you work so hard to alphabetize and dust off every week? Ever take pictures of your SNES library and post them to show how cool you are? There is a certain sense of accomplishment about having an expansive game library. Ever look at the "game list" on your profile on Steam and feel good about yourself?
On that note, what would this do to digital distribution?
Short answer: Nothing.
Long answer: I'm not going to rip off a "Yahtzee" joke and give you a legitimate long answer. Digital distribution platforms are not the source of piracy in the industry. Have you ever found a "Steam Rip" of a game or the like on the internet and gotten it to load correctly; and if so, do you consider yourself the "average pirate" or someone that will "find a way around anything ever?" If you're the latter, chances are the industry isn't worried about you. They're worried about your idiot friend who can just download a torrent or megaupload of a game image and Daemon tools it into working properly after they hop over to "that one website" and download the exe crack (or just use the one included in the image). The industry is losing to "casual pirates," not you super-uber-MIT-level pirate extraordinaire's.
The point being is digitally distributed games and their business models can remain in place and intact. This is for the rest. The aforementioned USB "dongle" method of piracy protection could make for a much more traditional (read: functional) system of "owning" PC games. Imagine a DVD or Blu-Ray shaped PC game case that has the install disc and a snap in slot for the game's USB key (much like the old PS2 cases had memory card snap in slots). You could store your PC games right next to your PS3/Xbox/Wii games on the shelf and treat them the same (meaning you have to get up and grab the disc/dongle to play it, you lazy bum).
Will this piss off PC gamers? Of course. That being said, a method like this might be the only thing that can save the PC gaming industry from completely dying off and/or getting nothing but shoddy console ports (I'm looking at you Insert Modern Shooter Here 2). This system, as evidenced by DJ Max: Trilogy has some positives to it as well. The buzz word du jour is "Cloud Saving" (which consequently has nothing to do with the next installment of Final Fantasy VII thank god) and a USB based system can easily store your online profile settings, control settings, saves, characters yadda yadda yadda so that when you get that new bitchin' PC and reinstall your game, everything is as it was; better yet you don't have to have online systems running all the time or rely on their longevity for said services.
Is it a perfect system? Absolutely not. Can it be cracked? Potentially, but it would be much more of a pain to have 27 "USB hardware emulators" running at once, and since all profile information and settings would be stored on said "thing" one glitch and all your saves are belong to us.
From a development standpoint, the added cost of using a system like this would be far outweighed by the potential recovered profit it could bring. The major caveats of a system like this is it would have to be universally accepted and implemented as an industry at the same time (at least as quickly as Blu-Ray was) or else it stands becoming obsolete vaporware before it has a chance to be successful. This would also give the doomsayers an alternative to being forced into centralized digital distribution and as long as they have their "game cartridge" they can play their game 20 years down the road without fear of Ubisoft's servers crashi-- I mean without worries of current DRM systems becoming obsolete and breaking games (I'm looking at you Shamus). The other potential upside is the extremely non-existent nature of invasive machine-breaking DRM that currently exists (SecureROM, StarForce, et. al.), and that in and of itself might be a warm welcome from consumers that cause them to embrace this as an alternative.
Has this idea already been thought of and shot down? Maybe. Am I the genius that just saved the gaming industry? Probably not; but as a consumer I can honestly say that I would be okay with this. I own a PS3, and an Xbox (Wii coming soon) and I do "Install" my games on the systems whenever possible to prevent wear on the disc drives, but I still have no problem putting the disc in the system when I play. I would actually prefer (with flash becoming cheaper) that they move BACK to cartridges for home consoles because of the lack of moving parts. Maybe I'm crazy...
I'm probably crazy.