Microsoft: Downloads growing, but won't eliminate packaged goods

by David Hinkle { Apr 3rd 2009 at 6:05PM }

With more and more people taking advantage of the convenience of downloadable content, some might assume that this new trend will start to take away from traditional brick-and-mortar retail. Not so, says Microsoft UK 's Neil Thompson, as he told MCV that there is "growth of the download and digital content market – but it is complementary to boxed content and services." He doesn't see the packaged good business declining at all.

Think of it as the peanut butter on that PB&J sandwich. It's essential, yet complimentary at the same time. And delicious.

Tags: digital-distribution, dlc, downloadable-content, downloads, neil-thompson

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Reader Comments (Page 1 of 1)

Markez @ Apr 3rd 2009 6:10PM

Hinkle you picture choices make it seem like you're doing an industry yearbook. Except where as Reggie could probably be captioned as "Voted most likely to steal your hamburger", ol' Neil here looks like he'd probably have something like "Voted most likely to have sex with your significant other"

Cosmo @ Apr 3rd 2009 6:16PM

I vote Reggie as the dude I'm most likely to be inspired by to work out and get really pumped up so I can rearrange his face if I have to see it more than once in a week.

TheQFactor @ Apr 3rd 2009 6:12PM

Isn't this statement the exact opposite of what Microsoft said when Blu-Ray won the media war?

istuffedsunny @ Apr 3rd 2009 7:24PM

Yup. And it'll be interesting to see how MS deals with Blu-ray for their next console. PS4 and X720 should be at the same price point, except one will play the standard movie format and have free online, and the other will most likely not.

And I know that personally I'll never be replacing tangible goods with digital ones. Not unless I'm getting the latter for free if you catch my drift.

Snap Count @ Apr 3rd 2009 7:39PM

Bah... Even if MS can't get a Blu-Ray liscence, which would be highly unlikely, there is always an option to go back to the cartridges. Why can't games be put on flash drives? With 32 GB flash drive at around 60 bucks, it only a matter of time before they to are in a clearance bin for 5 bucks. For that matter why couldn't movies be put on these things???

FNG @ Apr 3rd 2009 9:15PM

Come on guys. blu ray licensing has nothing to do with Playstation VS XBOX. It's a fee that must be paid. simple as that. It's not like Sony holds the cards to blu ray and decides who gets to use it.

If the storage medium of choice at the time of the next console cycle is blu ray, MS will use it. Anyone with a clue knows it won't be DVD-9. I hope it's a small flash media type. Something along the size of DS cartridges would be OK.

Dumb gaming fanboys can't seem to see the partnerships between corporations. I'm not calling any of you dumb fanboys here, just saying in general.

Sony and MS are business partners outside of the gaming divisions. They both profit from each other with the sale of every Vaio sold that uses the windows OS.

/End wall of text

Haldier @ Apr 3rd 2009 9:17PM

@Snap Count, +1

Nook @ Apr 3rd 2009 6:17PM

nice head shot, good standard typical fare....although.....maybe it's me or my screen....but are his eyes red? almost looks like a subliminal RRoD implanted....

nah, it's me.

I think we're at least 5 years out from optical disks being phased out, maybe longer.
I do believe we'll see all media available in both formats, buy physical - automatically entitled to digital download. In my dream world.

Of course I retain the right to be wrong, completely wrong, on everything.

cloud858rk @ Apr 3rd 2009 6:31PM

Wait, wait, people still buy software at retail?

Dante G @ Apr 3rd 2009 7:13PM

It's peanut butter jelly time!!

John Perkins @ Apr 3rd 2009 7:33PM

I think your analogy is off. Digital downloads are the jelly to the far superior, and more important peanut butter. You can eat peanut butter sandwiches without the jelly, but you wouldn't eat jelly sandwiches without the peanut butter. Come on now. You call that journalism?

myabsolution @ Apr 3rd 2009 7:51PM

his teeth need some whitening

Kodros @ Apr 3rd 2009 8:19PM

No he doesn't, he's from the UK.

TruthBringer @ Apr 3rd 2009 8:16PM

I think downloads will be a bigger part of all next generation consoles. As long as they have a system that backs up information about what you bought, so if something happens, you don't end up losing all the games you paid for

FireAnt360 @ Apr 3rd 2009 8:23PM

I don't see Digital distribution, taking off if the majority don't have easy access to the internet, I not against Digital Distribution, I prefer to have my entire game library on an HDD or SD storage (physical media for backup) than have 5-20 giant disc w/ cases.

[Off topic] At an angle he looks Micheal J. Fox

@myabsolution Indeed, he can do a SOLARBEAM attack to fend off foes.

AzzX @ Apr 3rd 2009 8:35PM

I think there is a bit of jealousy to Steams success here Microsoft. Online content distribution is the future.

HitNRun @ Apr 3rd 2009 9:00PM

The problem with the future is that it keeps turning into the present.

(Anyone who wants the cookie, just say it)

BFBeast666 @ Apr 3rd 2009 9:05PM

If any of the upcoming consoles ditches physical media, I'll ignore the console, nevermind how good the games may be. Going DL only leaves too many blanks for me. I can still play my C64 games from 20 years ago, I wonder if I will be able to do the same with my XBL arcade games or any other DL only content.

And DL only distribution takes away the tingling feeling of ripping open the anticipated games' packaging and putting it into the drive.