Codemasters co-founder David Darling has predicted that if Sony and MS’ next-gen consoles aren’t 100% digital only, chances of them failing are high. He compared them to Apple’s current profitable business model and the need to step away from retail.
“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,” he wrote on his blog.
“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 said retailers should not be able to dictate the price.
“Consoles have become like dinosaurs heading for extinction as their natural retail habitat begins to change. Sony and Microsoft cannot let the retailers dictate game prices going forwards if they want to break free from the current over-priced model. Their next consoles, PlayStation 4 and Xbox 720 need to be digital only, or they will fail.”