Digital Only Microsoft Xbox 720 "Unlikely"
"We believe a digital-only next-gen Xbox is unlikely given risks to both Microsoft's market share and the gaming ecosystem as a whole from any attempt to kill used games."
With talk of Microsoft researching anti-used gaming technology, it raises issues of how it would impact the gaming market. Many people, such as the Saints Row developers, believe that encouraging an anti-used game market is positive to ensure developers receive compensation for sales. While it's easy to view them as greedy, many spend years of their life on a single project, they do it for passion. I'm sure they believe that if you're good at something, never do it for free right?
On the other hand, the used game market is one of the best ways for developers to gain fans. It allows players to gain faith in a developer, and buy your next game on day one. If Microsoft did pursue the idea of a digital-only platform, it would effectively eliminate a significant portion of the used game's market. If they remained the only system implementing anti-used gaming technology, it could be a huge hit for the company with the loss of users.
There are a variety of views on the idea, and it seems an analyst with Cowan & Company, Doug Creutz, believes anti-gaming technology won't happen. On the topic of the rumored Xbox 720 being digital-only, Creutz said:
How do you feel about the issue? Are you standing in the line to trade your games in now, or would you rather all new game's self destruct once a player has decided their done? Source: CVG"We believe a digital-only next-gen Xbox is unlikely given risks to both Microsoft's market share and the gaming ecosystem as a whole from any attempt to kill used games. However, we do believe that Microsoft may be targeting a cheaper physical solution in an effort to get the initial price of the box down and speed up new console adoption, which would be bullish for software publishers."