Quote Originally Posted by TonyTheTiger View Post
Is the cloud really going to be so all-encompassing? If that's the case, why aren't they just going exclusively digital distribution? Yeah, the console requires an Internet connection but the obvious assumption is that it wouldn't require a great one. If the disc (or, rather, the data on it) and the internal hardware aren't all you need for basic functionality (barring the simple online checks) that essentially destroys anybody who has shit Internet. Forget lending or reselling their games, imagine how pissed off people will get when they find they can't even play them.
The speculation seems to be that Microsoft really doesn't care about the small percentage of the market that doesn't have reliable broadband Internet. While I am personally troubled by that position given that my brother was at sea with the US Navy and said that his Xbox 360 was the only thing that kept him from going stir crazy (they had no way of accessing the Internet other than at a few e-mail terminals), I understand the financial reasons for why that might not be their target market. Essentially Microsoft makes an overwhelming amount of revenue from a very specific kind of user with the highest attach rate for games and peripherals, who buy annual subs to XBL Gold and regularly buy DLC and digital only titles. Frankly, I suspect that people with poor quality Internet tend to be people with less economic stability who also tend overwhelmingly to buy less software and/or primarily used software or people who simply can't use the Internet because of their job or other factors. In a world where even this late in the cycle hardware only produces a very slim profit margin if any, those gamers are not of much financial value as used game sales and Silver XBL accounts provide little or no revenue to Microsoft.