Microsoft feared XBLA would "completely destroy the console industry"
Published on
Internal concerns that cheaper digital sales would harm traditional stores.
In the early days of Xbox Live Arcade, Microsoft had a real fear that it would "destroy the console industry."
The concern was that lower price points and digital delivery would shake up the traditional retail model of high-priced games sold through bricks-and-mortar stores.
"There was a legitimate fear that Xbox Live Arcade was going to cannibalize retail sales and completely destroy the console industry," XBLA creator Greg Canessa told IGN.
"That was actually a quote I got from one of the internal folks."
Xbox Live Arcade was one of the big success stories on Xbox 360, with well over 700 games released via the digital marketplace.