Technology Speculation: The Microsoft Durango

Two weeks ago it was announced that Microsoft would be implementing a new technology in the upcoming Xbox 720 (now code-named “Durango” according to Kotaku) to block consumers from playing used games in their consoles. Internet buzz has already begun a rally against Microsoft just short of pitchforks and torches. The thought of only buying titles at the more-than-steep asking price has gamers clamoring for something to be done. From this simple “anonymous tip”, the gaming world has been thrown into a frenzy.

The solution is 100% downloadable, digital console games. Yes, the death of the video game disc as we know it. This sounds like a crazy idea at first. You love having your gaming shelf lined with titles new and old. You like the idea of returning a game to Gamestop or Best Buy if it’s a stinker. You like just having a physical copy that you can trust in and snuggle with at night. But this way of gaming – hell, living your life – is a thing of the past. You download all your music off iTunes, right? You read all your favorite books on a Nook, don’t you? If Microsoft really wants to push the envelope and make a system that will revolutionize gaming for years to come they should be thinking 100% digital games.

OnLive is a cloud streaming service that streams hundreds of console and PC games for only $9.99 a month. You must be connected to high-speed WI-FI and you’ll need a receiver and controller if you want to play on your HDTV, but the technology is out there. OnLive has not released its recent subscription numbers, which means the numbers they have aren’t anything to brag about. On the other hand, FADE LLC has estimated that Xbox LIVE has sold over $123 million worth of arcade games, a number that doesn’t include downloadable content, community games, or games on demand services. If Microsoft can take some of the broader strokes from OnLive’s innovative mission statement, this could be “Game Over” for any next gen consoles not following suit.

Every console in this generation has download capability. On the PSN a gamer can play a PS3 game free for an hour, then receive bonuses for purchasing the full game straight from the Internet onto their console. OnLive lets you “Rent” games for 3 or 5 days for a lower rate, giving gamers who want to blow through a game in only a few sittings a lower rate. The PSPGo (the first fully downloadable system) was ahead of its time. Just like the MPMan or the NOMAD Jukebox, the PSPGo will be forgotten in years to come. But, the Durango could be the next iPod. Microsoft could be the first console to get the downloading thing right.

Digital copies are forever… in theory. Barring an overthrow of the Internet, you’ll get to keep that game you bought for all time. This takes the sting out of people who sell their copy of Resident Evil 4 just to re-buy it five years later when they want to replay it. Plus, if done correctly this means that when Xbox 2880 (code-named “Jeep Grand Cherokee Call of Duty 30 Edition”) comes out you’ll still have your Durango titles available to play. Digital copies also mean system-to-system compatibility. Sony’s new Vita will be able to share save files with PSN downloaded games to the PS3 (much like the PSP). Xbox LIVE already has a cloud gaming element where a player can save their file in the cloud and pick up that same file from a friend’s console. The next gen could take this small idea and blow it up into a genre altering innovation. But the price has to be right.

Used games are appealing because they’re cheaper. That’s it. CD’s used to be $15. On iTunes they’re only $9.99 or below. The price went down because you’re not paying for shipping to distributors, packaging, and lousy customer service. Hopefully this could mean cheaper games for the Durango. If Microsoft is planning on building the technology to stop used games because they’re losing too much of their investment, then even if they lower their prices, it should still be making them much, much more revenue.

In the end, this is all about money. Gamers want to pay less, developers want to make more. Buying games directly from Microsoft onto your system, more of your hard earned cash goes to the people who actually made your game. Yes, services like Gamestop and Gamefly will pay the price, but in order for new industries to strive, others must fail. Gamestop and Gamefly have been invaluable, especially in this economy, but eventually their services will become ancient, much like the video store.

We here at GN haven’t heard even the faintest grumble that this is even a possibility, but it should be. The bottom line is that the current generation of home video game consoles will be seen as the last of their era. Microsoft has the chance to be the first to take the 21^st century and usher gamers into a whole new world. It’s going to hurt at first, but five years from now you’ll look back at a time before 100% digital download and exclaim, “What the hell were we doing?”