The High Price of Digital Distribution

Xbox Live Marketplace


At this point Major Nelson's blog is nothing but Marketplace announcements, very little of which is actually worth spending money on!
So far we've talked around it, but now it's time to actually address the Xbox Live Marketplace. Unlike Sony, Microsoft has been a little stingy about what you can and cannot download, so we're left talking about expansion packs, arcade games, movies and TV shows. Not that there's anything wrong with that, but with Sony allowing you to buy complete retail games (such as Warhawk) online, one has to wonder why Microsoft hasn't followed suit.

Either way, perhaps we should start with the Xbox Live Marketplace. These days there's a lot of content to be found in the Marketplace, from game demos to new wallpapers to full HD movies. Unfortunately it's hard to compare apples to apples when it comes to this Microsoft service, since a lot of the content isn't available on both a disc and a

I don't care if you download it or buy it at GameStop, if you liked Oblivion then you really need to play The Shivering Isles!
digital download. Thankfully there are a few examples we can compare, such as the downloadable TV shows and expansion packs.

Take The Shivering Isles as an example. This Elder Scrolls IV: Oblivion expansion pack came with a whopping $30 price tag (2400 Microsoft Points). Then again, that's exactly the same price point 2K Games had for the disc-based version of the game. So like the PlayStation Network, you really aren't getting a discount when it comes to buying online. Then again, at least we didn't get charged more for downloading the content, which seems to be the trend we've seen with most online content.

The downloadable TV shows don't fare nearly as well as The Shivering Isles, though. Right now Xbox Live subscribers can surf through hundreds of TV shows and episodes thanks to the magic of the Marketplace. And how much does it cost to download (and keep) your own episode of a TV show? Between 160 and 240 Microsoft points (or, $2 to $3, respectively). That price appears to stay the same no matter if you're downloading a full-length hour-long TV show (which is actually

I would have chosen a good show (like Lost), but CSI: Miami had more episodes per season!
only 44 minutes) or a shorter, half-hour program (which is closer to 22 minutes). Heck, some of these $2 and $3 shows are actually no more than 18 minutes long; this is very much a one price fits all situation.

But is this a good deal? I suppose that depends on whether you buy everything at the manufacturer suggested retail price or not. Let's pick a show at random and put this to the test ... how about CSI: Miami? If you wanted to watch a full season of this hugely popular show it would cost you $48 (or $72 if you wanted it in high-def). Contrast that with $59.99 MSRP for the DVD box set and you're looking at $2.50 per episode, a fifty cent increase over downloading it via the Xbox Live Marketplace.

But don't get too excited, because at this point I can't find a single retailer selling CSI: Miami for $60. In fact, it's hard to find a retailer that has it for more than $50. On average it looks like all of the CSI: Miami seasons (including the newer seasons) retail for around $35 - $40 ...

Let's be honest here, there's really only one reason most people watch Heroes ... and you're looking at her!
which is actually cheaper than buying them individually from the Xbox Live Marketplace. What's more, these DVDs actually come with extra content (commentaries, bonus scenes, behind-the-scenes content, etc.). At best this is a draw, but if you search around enough you should be able to find all TV show DVDs for significantly cheaper than downloading them on your Xbox 360.

What's Wrong With this Argument? There are two problems with the TV argument, neither of which I have a good answer for. First up, Microsoft is releasing these television episodes at a time when the DVD is not available, so they are getting a jump on the physical media by at least a half year. And then there's the HD argument. At this point there are very few TV shows currently available on HD-DVD or Blu-Ray, so comparing the two accurately can be challenging. But if the most popular example, NBC's hit show Heroes, is any indication then you may want to think about buying some Microsoft Points and getting your HD content that way. If you wanted to buy Heroes on the Xbox Live Marketplace it would run you $69. Compare that to the $100 MSRP and you're getting quite a discount. Of course, we've already learned that most retailers don't sell these box sets for the MSRP, so you're bound to find some deals. But even the best prices appear to be in the $70 - $80 ballpark, which is at best the same price as downloading and at worse $10 more. Of course, the real question is why you are still downloading Heroes now that it has turned into yet another crummy hour-long soap opera.

Closing Thoughts

Who would have thought that I would side with the GameStops of the world? When it comes right down to it I'm all for digital distribution, I like the convenience and I want it as an option. I'm aware that there are plenty of Xbox Live Arcade and PlayStation Network games that could not have been released as retail games, so I like that I'm able to play some of these games for only five to ten dollars. My argument is not against digital distribution as a means of selling games, but rather as the only means of selling games. I would hate to see the option of physical discs completely ruled out, if for no other reason than I like being able to actually touch and protect my purchases.

I'm sure that over time my take on this will change, there are plenty of major changes that I was not initially for, but have grown to embrace over time. But this isn't going to happen for me until the prices come down. It's one thing to sell me $2 Rock Band songs (they may be more expensive, but at this point you aren't able to buy them on any form of physical media) and quite another to try and sell us a game for three times the price. Perhaps that's just the growing pains of the industry, maybe one day we'll start to see these prices come more in line with what we see in the retail market. Either way, I'm still not convinced that a download-only future is the way to go; I strongly feel that there are a lot of people who just like the idea of hanging on to something they own. If for no other reason than they want to go and trade it back at GameStop.


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