Mar 18, 2011 20:41 GMT  ·  By

When Microsoft announced that last fall's Halo: Reach, the last game in the series created by original developer Bungie, would be launched on the Games on Demand service for the Xbox 360 home-gaming console, players saw it as a sign that the publisher is becoming more conformable with the idea of digitally distributing its big titles.

But the game launched with a price of 59.99 dollars, the same as retail on the first day it launched in September 2010, and gamers protested, saying that the game is now available in brick and mortar stores for lower prices.

A spokesperson from Microsoft has offered a reply, saying that, “No one retailer has the lowest pricing for every product, and our program is about giving people 24-7 convenience and selection when shopping for Xbox 360 games.”

He added, “We’re incredibly excited about what Games on Demand means for digital distribution, and will continue to evaluate and evolve the service to meet market and consumer demands.”

Halo: Reach is not the only game that now costs more if one plans to get it via digital distribution, with Modern Warfare 2 offering another high profile example.

In the PC space, Steam and rivals like Impulse, Direct2Drive and Gamersgate regularly offer discounts for older video games and the services compete with each other to offer lower prices and bonuses for current releases.

On the Xbox 360 and the PlayStation 3, only Microsoft and, respectively, Sony can offer games for download, which means that they can set any price they want for a game with no thought of competition and don't need to cut prices to make sure that a rival does not get a bigger market share.

The companies that create home gaming consoles have long paid lip service to the advantages that come with digital distribution but have used the concept mostly for DLC and small games.