Microsoft Was Afraid XBLA Would Destroy Console Industry

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Xbox Live Arcade logo

Xbox Live Arcade (XBLA) is a big success, but not to the extent that it would destroy the console industry as Microsoft feared.

Yes, the tech giant had real concerns that the digital marketplace would “destroy the console industry” when it was planning and developing it, particularly that that lower price points and digital delivery would undermine the traditional retail model of high-priced games sold through conventional stores. In an interview with IGN, XBLA creator Greg Canessa stated:
“There was a legitimate fear that Xbox Live Arcade was going to cannibalize retail sales and completely destroy the console industry. That was actually a quote I got from one of the internal folks.”
Xbox Live Arcade is one of the biggest success stories on Xbox 360, having released well over 700 games conveniently and affordably to gamers. That success has carried over to the Xbox One.

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