![Microsoft feared XBLA would “completely destroy the console industry”](https://www.thetechgame.com/images/news/article/9814f56f03.jpg)
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.
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Source: http://www.vg247.com/2016/02/22/microsoft-feared-xbla-would-completely-destroy-the-console-industry/
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