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Why Microsoft is wrong about Digital Downloads

While browsing the web I came across a Microsoft Xbox Live! Marketplace advertisement for digital rental of Wil Smith's blockbuster "I am Legend."

This ad is the perfect example of why Microsoft is wrong in it's assertion that it does not need a next gen HD disc format in its game consoles because it has Digital Downloads.

You see I do rent movies I don't want to own from XBox Live! Marketplace as well as purchase TV shows. However, I won't be renting "I am Legend." Why? Because I own it. I've owned it for about a month. Before it became available in low-HD (720p) on Live! Marketplace, I watched the Bluray Disc on my PS3 in True-HD in 1080p. I also watched the alternate version with my preferred ending. One of these days I'll get around to watching the extra content, but for now, I've loaned it out to a friend so her kids can watch it.

This is why Microsoft is wrong about digital downloads. They will augment physical formats, not supplant them. At least not until digital downloads are DRM free and can be copied and played back from alternate sources in with full HD audio and video fidelity.

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DevonTheDude5356593d ago (Edited 6593d ago )

I agree, Microsoft screws a lot of things up often. For example, charging $180 for a 120GB HDD when MS thinks that HD digital d/l'ing is going to prevail(when over 95% of 360 users have 20gb or lower), maybe in 10 years. Two really important aspects of the Digital d/l "war"; one, you can not resell/return/trade downloaded media (DRM is not going away anytime soon) two, people like to own movies and have physical copies in pristine full quality (PS, digital copy and digital transfer add another factor to this equation). And since when is the live marketplace bigger than I-tunes video store (it's not even close), also don't forget Sony has an ace up their sleeve as far as downloadable movies are concerned. Sony does own a massive amount of content including movies, TV, and music, all viable for the new and coming PS video store.

Truplaya6593d ago

how much did your PS3 and the bluray cost you though? If you only had a 360 this maybe the only way to watch i am legend in HD for a low price.

MorganX6593d ago

Well, to download from Marketplace you have to have the 20G model.

PS3, 40G, Bluray, Built-in WiFi = $399
Xbox, 20G, DVD, no WiFi = $349, Live! Gold membership = $50

Microsoft can't win the cost argument. Trust me, a $399 Xbox with the same features as the PS3 would be flying off the shelves, I'd pick one up tomorrow as long as it was as quiet as the PS3 and no more RRoD.

Jinxstar6593d ago

I can understand the BR argument a little. In stores they are mostly expensive... but

http://www.amazon.com/Am-Le...

so long as you shop online its a deal.

DevonTheDude5356593d ago (Edited 6593d ago )

In the end you are only paying for the disc which is about $22 if you consider rental fee (at msrp of ~$30). But w/ the 360 if you don't have it hard-wired (plugged in to connect to the internet) you have to buy the wireless adapter for $90 (I got one direct from MS on the cheap though). And don't forget about buying points, it is a ridiculous process for credit card if you don't use point cards ($12.50 = 1000 pts by credit card, not like the 1400 for $20 at retail). At least the PSN lets you charge a minimum of $3 and understandable denominations (5,10,15,20,50,100,etc).

MorganX6593d ago

I don't really have any problem with MS Points or paying with a Credit card. I actually think it's much easier than PSN.

Truplaya6593d ago

yeah, the M$ points system is rubbish. I dont think i'll ever use the movie store but i'm glad it's there if i ever want it. Buying a 360 and renting one movie is probably half the price of a PS3 with a Bluray movie. (i dont use a wireless adapter and dont use wireless on my PS3). Did you know WiFi and Bluetooth are very similar frequencies to a microwave. I dont like the sound of that.

donscrillinger6593d ago (Edited 6593d ago )

off top, i don't rent i buy.they should let you own the movie.only than will i get on the ship wit there MOvie download service ..but don't get me wrong i do get thingz like new stages for games and shows.Mostly cuz you own wat you pay for ...I do have an Zune and video DIS is the way to go ...when you think about having movies and muzic to go..also just thinking bout it i take the zune over all the people i know wit 360's to use for watching movies when i'm over ,which iz pretty fresh.so yeah i think thats the future..

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70°

Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.

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simulationdaily.com
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Jin_Sakai8d ago (Edited 8d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio7d ago

To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Jingsing7d ago

The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.

Tanktopmaster927d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit7d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing7d ago

15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.

Tanktopmaster927d ago

These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse

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Games Done Quick is coming to Europe for the first time with 3 days of Gamescom speedruns

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