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Analyst: Digital-Only Xbox 720 ‘Unlikely’

Durango, Xbox 720, NextBox – call it whatever you like, but one analyst doesn’t believe that it will be a digital-only platform. Cowan & Company analyst Doug Creutz addressed reports that Microsoft’s upcoming Xbox 360 successor would forego a disc-drive in favor of an all-digital distribution platform, stating the move would be too risky.

“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,” Creutz said. “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.”

Additionally, Creutz speculated on a time frame for the system’s release. “Although not yet confirmed by Microsoft, we believe the next generation Xbox console could launch in the fall of 2013,” Creutz said.

Do you think there’s weight to this? How would you feel about an all-digital Xbox?


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