questionswhen the new xbox drops in 2014, will disks be…

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They already almost are. As it is now, you can turn on the Cloud Save and Roaming Profile feature on Xbox 360 after that last update(Limited to 500-600mb currently) plus you can already use flash drives locally, despite their limited write-cycles. (Not sure how the Xbox likes using flash memory for cache space tho..) You'd still need the HDD for stuff like installed games and tons of DLC stored over long term... and it's a DLC world right now... long term anything IS also kinda losing it's appeal as the rate of progress skyrockets towards it's current level of innovation.. I am betting cloud space will go up as a standard practice across all technologies sooner than later.

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I sure hope not. I don't like the idea of paying $59.99 for a game and not getting jack in return for it, other than a "license" to play the game. The authentication server could go down at any time, or they could remove access whenever they felt like it. Or the services could be brought to a grinding halt by hackers (see PSN). Plus what about all us poor country folk who don't have access to reliable broadband service? It would take me a day to download a XBox 360 game, and a few days to download a PS3 game. It won't happen for that fact, maybe the PS5/XBox Infinity.

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The new Xbox may be coming next year. I hope not. I don't want another trash launch system.

Hearing rumors the GTA V will be a download only game. If you buy it at retail you will get some sort of collectable or something with the case and download code.

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I honestly don't see digital-only taking off until we reach a point where high bandwidth, high quality broadband internet is far more widespread. (You'd think it would possibly be by now, but there are a number of people who really don't even have broadband) Without such connections, they would just end up with more unsatisfied customers. I mean, look at how the PSP Go has faired running off the digital-only concept. It performed pretty poorly.

And personally, I don't really agree with the push toward the cloud. Sure, it sounds great to not have to worry about local data storage and being able to pull up your stuff anywhere, but in the end you're putting your data in someone else's hands. They now have so much leverage over you, because theoretically they could do whatever they wanted with the data at any time.

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I hope not unless you can save the game to a hard drive and access it anytime without having to connect online. I like having something tangible when I buy it especially from a company that can ban you from a service you paid for. Just imagine buying 10 games and getting banned, you would probably lose access to those games as now they are in control of the medium.
Not to mention if it is cloud based and you don't have internet access then you can't play it. Until the world (developed countries) has at least 90% coverage for high speed internet and wifi spots all over then it won't be as big a seller as a system with a physical medium, this unless they install games to the hard drive with no internet access required.

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Physical media will not be obsolete for any media for at least two decades.

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If and when that happens, they better have HDDs with at least 1-2 TB capacity.

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Video game developers would love this idea. This would mean no more used games and the developers would be able to charge whatever they want.

And then companies like GameFly will go out of business.

I think in the next few years we will start to see slow adoption to digital. I'm thinking similar to how the DVD/Blu-Ray/Digital sets are going now. You buy the game, you get it physically, but you also get a download code for it. Maybe the download code arrives first (like instantly from Amazon?) and the game arrives later. Something like that.