You're saying it, retailers make money mostly from used games. Cut that and they'll become less strong and less relevant.Anti-Robot Man said:How would the previous system Microsoft proposed have changed that? They were still going to sell physical copies through retail channels as a delivery system - it wasn't all digital. There's a good reason for that too, even with an always-online console they've got to sell the thing - which requires retailers. Retailers make virtually no profit on console sales (which are incidentally bulky and take up a lot of floor space that could be filled with more high profit items), the reason they stock them is to build the market so that customers return and buy games from them (where they can make a profit). If MS tried to cut them out of selling games, they wouldn't sell their consoles for them.
Competition is what drives down prices, not the good will of publishers.
Ensure every console has internet.
Show the people that the digital games can function in a similar fashion as the retail games. And in some cases even better - 10 family member having quick access to you library, no mater where they are. One of them being able to play simultaneously the same game with you, without having to own another disc.
Make the disc pretty much useless. If you cannot re-sell it, nor lend it to a friend, the only reason to have it, is so that it can adorn your shelve.
Since you no longer have to pay for disc printing, retail shops and middle men, you can offer some discounts or even lower prices.
And who knows, people may jump on it.
One thing is sure, keep the current status quo and nothing will change.
And MS will have all the competition from Sony, Nintendo and the PC.
Just like Amazon has. There are tons of digital books shops, a dozen of other e-book readers, and all the tablets and smart-phones in the world. Even if none of these are on their closed market (you have apps to read on other devices, because they're allowing it), and despite all the exclusive books they have. That's real competition, competing with content and features.