Why Xbox 360's Games on Demand Service is Failing

There is no doubt about it, digital distribution of video games is key to the future of the video game industry. With successful intermediaries such as Steam, it is clear that the digital distribution of PC games is not only viable, but profitable as well. However, in a world of ever increasingly superior technologies and lower prices, Microsoft has managed to drop the ball when it comes to their handling of digital distribution - specifically with their Games on Demand service on their Xbox 360 entertainment system - and that is why Xbox 360's Games on Demand service is failing.

Not Enough Room for Games on Demand
Microsoft has led the way in pushing digital downloads through the Xbox Live Marketplace. However, as users expand their video game libraries they can quickly run out of room on their Xbox 360's hard drive. This becomes especially apparent with Microsoft pushing their new Games on Demand service where Xbox 360 owners can download full titles off of the Xbox Live Marketplace and play games without the need of a disc or even leaving their couch.

Many Xbox 360 owners have older 20, 40, or 60 gigabyte hard drives. Consider the fact that in order to avoid extraneous strain on an Xbox 360 one must download their game onto consoles hard drive. While some titles may only require a couple of gigabytes of space, other more popular games such as The Elder Scrolls IV: Oblivion and Fallout 3 require over seven gigabytes of space each. This means that the majority of Xbox 360 owners can only have a handful of titles on their hard drive at a time.

Exorbitant Xbox 360 Hard Drive Prices Impact Games on Demand
As a work around to lack of space on their Xbox 360 hard drive, many Xbox 360 owners constantly delete and download games. One could point out that players could purchase new Xbox 360 hard drives, however they are expensive in price compared to their value. The combination of exorbitant markup prices and lack of third party options creates makes both casual and serious gamers shy away from fully embracing the Games on Demand service offered by Xbox Live.

When factoring in the price of a purchase of an Xbox 360 Games on Demand title, one would also have to add in the cost of a new hard drive. Spending over $100 for a larger Xbox 360 hard drive just to download ten Games on Demand video games at $30 each is really spending $40 on each game. That $100 is half the price of a new system, and the money could be better spent on video games themselves.

Purchasing Games on Games on Demand is More Expensive
Consider the fact that Oblivion costs 29.99 from Xbox 360's Games on Demand. Oblivion has a couple expansions: Knights of the Nine and Shivering Isles. Knights of the Nine costs 800 Microsoft Points ($10) and Shivering Isles a whopping 2400 Microsoft Points ($30) to download, bringing the total purchase to $70.

The retail version of Oblivion can be purchased brand new from Best Buy or another store for $30 - and as the "Game of the Year" it contains both expansions included. Let's not even talk about a used copy from Game Stop.

Games on Demand was created to be convenient to gamers. When players need to shell out an addition $100 in order to have space to pay even additional bloated prices of games they could just purchase cheaper at a retail location, it is anything but convenient. It is inconvenient.

How to Fix Xbox 360's Games on Demand
If Microsoft took a page from Steam.com, which provides a similar service for pc users and offered games at a discount, then players would be more inclined to spend their hard earned money. Players would also be more inclined to pony up the cash to purchase a new Xbox 360 hard drive if the hard drive was sold at a reasonable price.

Until the price of Xbox 360 hard drives comes down and discounts begin to occur on Games on Demand, Xbox's 360's Games on Demand service will continue to fail.

Did you enjoy this video game article? You may also like:
Toy Soldiers Review
MotorHEAT Review
Review of Risen for Xbox 360
Darwinia+ Review
Matt Hazard: Blood Bath and Beyond Review