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Jun 26
2009
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It just occurred to me today that Microsoft's Games on Demand service coming this August might be a hint of another Xbox 360 SKU. Yes, I know it's unlikely with Project Natal in the pipeline, but humor me for a minute.
Games on Demand in my opinion could result in a slim Xbox 360 next year with the Valhalla chip that combines the CPU and GPU to reduce heating, improves performance and most importantly reduce on the risk of a RRoD or E74 error. The last major flaw in the 360's design is the disc drive which Microsoft have cleverly not supported under their 3 year warranty.
Now, what if Microsoft came out with a slim 360 that was HDD based only. You have the newly improved hardware and all you'd need is a large enough proprietary HDD (say minimum 320 gigabytes) to support your Games on Demand service. Coupled with all the streaming capabilities with their video services, you wouldn't necessarily need the space for anything but games. This would help cut a few costs in hardware production, gather more revenue for direct online purchases and help reduce cost of system returns provided the new hardware is quite stable.
I know that just like the up an coming PSP Go, this would be a business leap of faith for your consumers. It means purchased download games cannot be traded and in turn reducing the quantity of purchases given people don't like to take chances on non-retail products. The only way something like this could benefit everyone is if there was a downloadable rental service.
Either way, I think Microsoft might be on to something. Sony might be testing the waters with download only merchandise on the PSP Go, but there's no way they could do so with larger games taken from Blu-ray discs. Yes, you can buy larger off the shelf HDD's, but if there's 50 gigabytes of space taken per game, Microsoft's method of using dual-layered DVD's might net you more content on a larger HDD with games clocking in around 8 gigabytes.



I feel like doing a contest as I have the pictured