14 DAY TRIAL // The fact that the next generation of gaming hardware will likely still use physical disks in order to deliver content might lead to its downfall, considering the strong competition that can be delivered by iOS and Android powered devices.
David Darling, who is best-known for being one of the co-founders of Codemasters, has posted on his blog that, “If the next generation consoles have media drives like DVD to keep distributors and retailers happy so they can sell physical product this will make the machines uncompetitive. They will not be able to compete on price.”
The executive, now leading a social game developer called Kwalle, added, “The retailers will say to Sony and Microsoft ‘you can’t sell game X at retail for $60 and then sell it in your App Store for $2.’”
“However, console-makers will need to sell games for $2 or else they will not be competitive with Apple. Nintendo 3DS and Sony Vita are not currently competitive with iPhone and Android game prices,” he also reported.
Darling used recent figures from the industry, which show declining physical sales and an increase in the profits of the digital space, as evidence of the trend.
Neither Sony nor Microsoft has announced clear plans for the PlayStation 4 or the Xbox 720, and the two companies are likely to officially announce their devices in late 2012 or early next year and then launch them in about six to nine months.
Rumors have suggested that Sony is working with Gaikai to allow streaming and digital distribution on its own consoles and Microsoft could do something similar by extending the Xbox Live service.
Analysts agree that it is unlikely that both of them will completely drop physical disks. Nintendo is preparing to launch the new Wii U home console at the height of the Christmas shopping season for an yet undisclosed price.