Microsoft's hotly-rumoured new Xbox will be "a true hybrid console," allowing consumers to choose to buy their games from the shops or download digital versions from Xbox Live.

That's according to EEDAR analyst Jesse Divnich, who thinks that on the next-generation of consoles neither Microsoft nor Sony will force consumers to go 100% digital.
"The digital transition will be just that, a transition," he told Industry Gamers. "The digital transition will ultimately be at the choice of the consumer and Microsoft and Sony will continue to support physical media until the mass market has reached the tipping point of acceptance on digital."

Divnich went on to remind us all that, despite the rise of digital downlads, physical software sales still dominate.

"Right now, only about 10% of console software revenue occurs digitally and it would be inefficient for either manufacturer to accelerate that to 100% through a cloud or digital only environment," he said.

"I know companies like Apple forced their consumers to go 100% digital, but keep in mind that at the time Apple was still emerging as a market leader in the music space.

"They understand that it would take years to go from 0 to 100MPH. Microsoft is already the market leader and it would be detrimental to their current success if they hit the reset button and forced consumers into an experience they may not be ready for."

"I'd expect the Xbox 720, or whatever they choose to call it, will act as a true hybrid console, supporting both physical and digital media with the long-term hopes that they can provide enough incentive and value to accelerate that transition."

A report this week suggested Microsoft could announce its new console as soon as CES in January, with whispers of hex-core (six-core) processors AMD graphics cards.

Posted: Nov 16, 2011 4:33 pm

Source: http://www.computerandvideogames.com/326197/xbox-720-will-be-a-true-hybrid-console/