Microsoft Defends Games on Demand Pricing and Staggered Releases
Written Friday, April 27, 2012 By Lee BradleyView author's profile
Microsoft has moved to defend its current Games on Demand strategy, which sees titles released for download at full retail price, six months after they hit stores.
After that period of time games are often heavily reduced at retail, yet Games on Demand offers no such reduction. As a result, many gamers dislike the model, as they feel it does not provide value.
The staggered approach to digital releases also means that Xbox is out of step with PlayStation, which is now offering simultaneous digital releases on launch day.
Microsoft, however, point to the popularity of the Games on Demand service as evidence that it works. It’s a profitable model, so they see no need to change it.
Xbox Live UK product manager Pav Bhardwaj said, "It comes down to choice. The customer has the choice of going to retail on day one if they really want to buy a particular title, or to wait a couple of months and buy it full price from the Xbox Live marketplace.
"It's a successful part of our business, we're very pleased with the growth and it continues to do really well. Clearly there's an audience out there who are happy to purchase a product at full ERP six or so months after [its retail release].
"We don't do Games on Demand on day one, we focus on boxed retail for day one. That's where our focus has always been and will remain that way for the foreseeable future," he said.
"It's a successful model, so why change something you don't need to?"