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Microsoft Games on Demand Service – One Step Away from Microsoft Points

Microsoft Points Card

In my opinion, the biggest Microsoft announcement at E3 today was made after their press conference was over. They announced a new Games on Demand service (coming this August). It has two important features:

  1. Full Games Available for Purchase on Demand: Microsoft will start selling full games on-demand via download through the Xbox Live Service starting this fall. Following in the footsteps of Steam (and to some degree Sony), this may be a critical inflection point on the path away from retail game sales. The 30 announced games are all older games (eg: Mass Effect, Assassin’s Creed and Bioshock). Games are to be sold at regular retail prices (no disk-free, Gamespot/E.B.; disintermediation discount). Nothing was said about the future availability of new titles day-and-date with retail releases. With the service in place there is, of course, no technological reason why this couldn’t happen. It’s just a matter of time.
  2. A Step Away from Microsoft Points: Anyone who is a regular reader of my blog knows that I am a critic of Microsoft Points (see this post, for example). Games purchased through the Games on Demand service will be purchasable with a credit card. No Microsoft Points required. Amen! Let’s hope this is the beginning of the end for Microsoft Points. 

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iTunes Movie Rentals Come to Canada

iTunes CanadaStarting today (press release), Apple Canada is making movie (and some TV show) downloads available to Canadians through the Canadian iTunes store. Apple says 1200 titles are available at launch, including 200 ‘high-def’ titles.

Despite Canadian dollar parity, as usual Canadians will pay more per rental ($4.99 for new releases, $3.99 for older titles) than our American friends who pay $3.99 and $2.99 respectively. In both countries ‘high-def’* versions cost $1.00 more when available.

Canadians will have 48 hours to view iTunes movies after pressing play. This is surprising because Americans have only 24 hours to finish watching iTunes movies. I expect the U.S. service to follow suit shortly.  As in America, Canadians have 30 days after downloading to start watching their rented movie before it is deleted.

I took a quick look at the iTunes Canada movie offerings. There seems to be a good selection of new and older movies. Unlike in the U.S., there are no current prime-time T.V. shows available for download through the service. The available TV shows are either shows you never heard of or older TV shows. I expect that to change over time too. Participating studios include Disney, Paramount , Warner Bros, 20th Century Fox, Universal, MGM, Sony, Lionsgate and Maple Pictures.

Below I discuss your iTunes movie play-back options and compare the iTunes movie service to Bell’s recently announced video download store, the Xbox 360 movie download service, the Amazon Unbox-to-TiVo video download service and the pending PS3 movie download service.

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Are the Days of Microsoft Points Numbered?

Microsoft Points Card I recently listened to the March 31, 2008 EGM Live Podcast (download) where Garnett Lee interviewed Aaron Greenberg, Microsoft’s Director of Product Management for the Xbox 360 and Xbox Live. Among other topics, Aaron had the unenviable job of defending the concept of Microsoft Points (time index 17:40).

[Update: June 1, 2009: Today Microsoft announced ‘Games on Demand’. A feature to be launched in fall 2009 where full games can be purchased with credit cards. Finally, one small step away from Microsoft Points! See Gamasutra article.]

Reading several articles today on Sony’s pending PS3 on-demand service (see here, here and here) and Sony’s pending Playstation cards, to be denominated in local currency (here), it occurred to me that Microsoft’s use of points alone is going to become increasingly untenable as Microsoft’s key game/movie/TV show download competitors all offer competing products denominated and purchasable in local currencies.

Below I discuss Aaron’s arguments for Microsoft Points and what, to me, are overwhelming competitive arguments against them.

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