A new terrabyte hard drive for the Xbox 360 is rumoured to be tied in with the launch of Project Natal.
According to analysts the only thing that's holding the Xbox 360 back now is the lack of any real storage space, which is becoming more and more of a problem as Microsoft roll out more digital distribution services, such as the upcoming Games on Demand service
that will launch in August.
Thankfully, a new terrabyte hard drive is rumoured to be in development for the Xbox 360 and will likely launch at the same time as Microsoft's new camera-based motion sensor, Project Natal
The new Games on Demand service will let users download full Xbox 360 games to their hard drives and pay for them straight from a credit card, without MS Points. Discussing how this system might affect retailers, Wedbush Morgan's Michael Pachter suggested that retail stores might be forced to adapt to the market whether they like it or not - with the GameStop chain for one being firmly in the 'not' category. In comments yesterday GameStop said they did not believe that digital distribution would have a proper, sustainable market for a few years
"While retailers may baulk at the possibility of day-and-date downloads, I don't see too many refusing to carry Microsoft product in retaliation,
" Pachter said in an interview with GI.biz
. "Should a retailer boycott Microsoft, I think that the full force of the publishers would be brought to bear on that retailer, and they would find themselves starved for product.
"Many publishers favour such a model. It's true that retail partners wouldn't like it, but it is not necessarily true that they would have much to say about it,
" Pachter continued.
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