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[Updated] Microsoft Says Xbox Live Arcade Will Eventually Be Phased Out

[Update]

Through its PR agency, Edelman, Microsoft issued an official statement on this story, assuring gamers that Xbox Live is in no danger of being taken down.

“Xbox LIVE Arcade is and will continue to be the premier destination for quality downloadable games at a great value, boasting an ever-growing, eclectic library of hundreds of games, spanning every genre. We are committed to providing new downloadable games for Xbox 360 and continuing our work with 1st and 3rd party developers on the platform. We have no plans to dissolve the service at this time.”

[Original Story]

In a new interview, Microsoft's Michael Wolf speculates that Xbox Live Arcade will eventually be phased out as digital distribution matures.

In an interview with Vox Games, Wolf, Microsoft's global marketing manager for XBLA, said that the service might eventually be taken down due to the increasingly blurred line between large-scale retail games and ambitious XBLA games.

When asked if XBLA would eventually be phased out of existence, Wolf answered, "Personally, I'd say absolutely, yes. I think digital distribution has to be like that. I don't think XBLA will be leaving soon. It is an incredible platform. We have XBLA fans, I don't think it's going to be announced anytime soon. One thing Microsoft has proven is that we continue to try and adapt and innovate in experiences."

However, that doesn't mean that the company is turning its back on downloadable games. It would rather be a reaction to the changing market, citing the example of Remedy's Alan Wake: American Nightmare, which in past year's would have been a retail, disc-based game. In the future, as XBLA games become more ambitious and more triple-A games go digital, designating games as "Xbox Live Arcade" games might be a meaningless distinction.

Source: Vox Games via XBLA Fans

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Comments
  • Maybe they'll try to make it like Steam, but I highly doubt that.
  • It's all a stupid excuse to make consumers spend more money on hard drives. Do they think that people actually have infinite space?
  • Maybe I missed something cause it's 3AM but, if it eventually disappears, is he saying they'll be back on traditional disc? Isn't XBLA digital distribution that everyone's working towards / drooling over? Hence App stores and such. Further more, what happens to the indie projects??? Granted there's a lot of junk to filter through to find gems for indie games but I can say the same when I walk into a Gamestop and go through the "New Game" Shelves.

  • Alan Wake:American Nightmare would not get my money if it was a disc based game for 50 or 60 bucks. Compare it too Alan Wake and you will see the difference.  But it doesn't surprise me XBLA will be phased out but it won't change the content we get.  Xbox Live is still the best online service out there so of course it will keep adapting.

  • So long as pricing structure doesn't change, that is fine. Retail pricing - where every game has to be 60 bucks - is what killed innovation in that space. Digital games don't suffer from that, and you can find creative, charming games that are only 15 or 20 dollar experiences. They're not meant to compete with the derivative, disposable, overproduced garbage like oh-so-many Call of Duty games.

    Don't lose sight of THAT, Microsoft, and we'll be fine.

  • It's Microsoft, they're going to kill gaming as a whole at some point....

  • this article is misleading. What they should re-iterate is that the XBLA "name" is going away. So your downloadable 10-15$ arcade title will still be there in all its glory.

    at least that is what I take from it.

    GI please make this more clear so that people don't get all sex crazy and ***-strong in here and start breaking things

  • Well yup...I may be dropping Xbox after this. One of the main reasons I got one is because of XBLA and all the fun little cheap games that were on it. I may just switch to PS3 if it's gonna just be for big games and whatnot.
  • Yeah the name change is pretty irrelevant.  They're not moving away from digital distribution so it's whatever.

  • I think a lot of people commenting on this story didn't read the story or understand. MS will obviously still offer the same games currently on XBLA - they just going to do away with the arbitrary file size designators that assigned a game to XBLA versus Games on Demand, etc. This makes sense as the lines continue to blur (and will eventually be completely erased) between a downloadable game and a AAA release. All games will be released Day 1 in downloadable format next gen - this is just getting ready for that. There will still be smaller, cheaper, indie games available as download too.
  • I agree with everybody about this being a pointless article. Additionally I hate that the title evokes negativity. It makes it seem as though Microsoft is getting rid of their support for smaller budget games through digital distribution. Instead it just states the obvious that smaller budget games are delivering satisfying experiences and attracting bigger, already established, names. The difference between a retail disc game and "arcade" digital download is fading.

  • seems logical to me

  • I don't care what they do with it or what they call it. What I do care about is all the money I have spent downloading Arcade games. I have rightfully purchased these games, wiether they are a digital copy or not. I hope they figure something out, espically for the next gen of consoles. If I can't carry over all of these digital games I bought, then what's the point?

  • at the time they were thinking yes we are so smart, now they're like what a waste

  • **BRAAAHHHH** bill gates

  • So keep your eyes out for Arcade 2040.

  • It should be never. The best games being made TODAY are digitally distributed independent games. I know that sounds pretentious, but I played Vessel last night on Steam and had more fun playing it then I did playing Twisted Metal. Getting rid of XBLA is the dumbest *** idea I've ever heard. Kinda like no sloppy seconds. I love my 360, but the people at Microsoft can eat ***. They don't give a *** about their fans and they have some of the most loyal fans. It makes no *** sense. Sorry, I curse when I'm angry at stupid ideas.
  • Why do people mark a article with a negative review if it's something they don't want to hear? I wouldn't say this is the best Article I've ever read on here but it's not a two star... I enjoy hearing about the business aspects of the game industry. These quick blurbs are nice. This way when they announce XBLA is going offline I wont be surprised by the decision.

  • What this means is the games that would have been Arcade titles will now cost $60.
  • Why would you plan to get rid of XBLA? I mean ...... that really doesn't make sense at all actually.....