Gary

I think that marketers peg the video game deomgraphic as a bunch of impressionable children who take pride in brand association and who are willing to gladly pay the price twice if for no other reason than harboring a general apathy for anything outside the realm of Transformers, let alone business ethics.

When atm machines were first introduced, they were free, as the bank made it's money from reductions in staff as a result of automation.

Then realizing that they could take advantage of the virtual oligopoly that major banks enjoy, they made money from both ends by charging for the atm services that they were already benefitting from.

Microsoft is trimming much of the overhead of a brick and mortar Blockbuster store through digital distribution. They could discount the movie prices and enjoy the same kinds of profit margins as the brick and mortar stores.

But no. They're going to charge similar prices, snatch up the savings for themselves and try to have their pr staff convince enough of the younger demographic that online renting through their Xbox is cool and will make them reek of sex and revolution.

I like my 360 but I recognize Microsoft as the devil I know.

For example, I've always thought that Metal Gear 3 was a predominantly green game. Felt like I had grass stains on my eyeballs.

I've assumed that narrowing a game's color pallette allowed designers to squeeze more out of a console's performance.

Another example is perhaps that Assassin Creed's pallette is mostly black, white & gray with bloom effects.

Post #15 / Moogle - I couldn't have said it better, thank you. Microsoft is now showing its teeth.

The consumer loses with Xbox downloads.

Maybe we could somehow have the consumer's grand wizard, Ralph Nader to put his perspective on this?

Triple word score to Joystiq for working in the improbable phrase, "boob-filled bundle."

"I'd buy that for a dollar."
-Robocop

I'll wait to buy Lumines for the PS2. I've got a 360 but I want a physical game for my money that'll outlast my Xbox account.

Buying downloads makes no sense for game collectors.

Charging for cheat codes?

I think an overlooked issue with the original Xbox and the 360 (I own both) is the perception of Microsoft with the core console buying demographic.

If Playtex or Tampax offered a gaming console, their branding and image would be a major hurdle.

Microsoft is perceived as an old school, old man conservative borg who's trying to be hip like a school counselor trying to act cool to gain a student's trust in order to find out why Jimmy keeps pulling on his pants.

A great deal of today's youth find all things Japanese to be effortlessly cool and curious. Aside from a killer developement house, Sony doesn't have to strain with but a fraction of Microsoft's effort to seem like the must-have system.

I think that in kid's eyes, Sony = cartoons, hip hop and Japanese style while Microsoft = Windows, Flight Simulator and Uncle Lester's spreadsheets.

I imagine Bethesda is walking a fine line to avoid the appearance of saying that the Sony version will have new content out of the box, much like the stuff 360 owners paid Microsoft extra money for.

It'd be refreshing to see Microsoft admit that sometimes the Live Marketplace is used to earn extra profit that that would not be possible from attempting to increase the initial retail price of a game.

It's much the same tactic as the Home Shopping Network employs by stating that an item can be purchased for three easy payments of $19.99, rather than simply giving the final price.

A certain segment of the public can be strung along to make small payments that total more than they would have been willing to pay all at once.

As an example of my philosophy I'll give the following example: Last week I bought Smuggler's Run for the PS2. It's been around since the launch days of the PS2. I find that its a simple but fun game that garnered good reviews and I'm enjoying it.

It cost me $3.99. I have a physical complete game that I may use on multiple iterations of the console and may resell, give away, prop open my window with at my leisure.

Episodic games, new games, Xbox Live games / premium content are all marketed squarely at a demographic with mucho disposable income and a feverish interest in getting rid of it for the sake of staying fashionably current in their gaming.

Those gamers ought to do themselves a favor and take a breather from gaming for a year.

When they return on the scene and start from where they left off, they'll be playing the very same games while slashing their gaming cost by more than 50%.

If the games are what really matters to them and not the trendiness, then their enjoyment of gaming wont be diminished by the passage of time.