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xbox one111111111111111 -

Xbox One game sales will gradually shift towards digital, but don't expect titles bought through the digital store to be offered cheaper than retail, Wedbush analyst Michael Pachter has said.

"We expect some market share to shift from physical sales to digital sales, but think that the migration will be slow (perhaps 5% in 2014 and 10% in 2015) as it is not clear that every game will be offered in digital form," wrote Pachter in a research note published today.

He added: "Although not yet announced, we remain convinced that retail relationships will dictate that digital copies of games cannot be discounted below the retail price, meaning that the value proposition of a digital download without trade-in rights will be lower than a physical copy, and will appeal only to the convenience oriented customer.

"Ultimately, we think that no more than 50% of game sales will be in digital format."

VideoGamer.com Analysis

If digital prices are no cheaper than retail would you make digital purchases knowing that the only benefit is convenience – you can play without putting a disc in the machine and access your library on any Xbox One console?

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FantasyMeister's Avatar

FantasyMeister

The way I see it is that if digital prices are no more expensive than retail then they're worth it, even though they take up my own storage space on the HDD and might need to be deleted/redownloaded at a future time to make room for other games. Even with 500 gigs available.

The benefits are:

No trip to the shop required, I get it comparatively instantly
No wear and tear, my digital copy will always remain pristine and never get scratched
No wear and tear on my disc drive, my hardware should last longer

The trouble is, digital prices (on consoles) are never, ever, cheaper than retail on day one. They take months, literally, to become competitive, and even that usually requires a one-off sale.

I like that Microsoft recognised this issue and tried to do something about it. I dislike how they seemed to mis-communicate their solution and had to backtrack on it.
Posted 13:32 on 20 June 2013