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November 13, 2008 4:41 AM PST

Microsoft to digitally distribute PC game titles

by Dave Rosenberg

In addition to new Windows Live social-networking features, Microsoft will soon be offering digital distribution of PC game titles.

Chris Early, general manager of games for Windows Live, confirmed in an interview with Shacknews that Microsoft has definite plans to distribute full PC titles through its Marketplace application, taking on market leader Steam.

This is a very smart move by Microsoft, though I would have expected the company to have either bought its way into the market or to have made PC game distribution a bigger part of its online footprint already.

If you consider the vast number of PCs that run Windows and then look at the number of PC games sold every year, Microsoft already has the dominant platform. This approach will further cement games into the Windows user base.

Steam and Valve have done a fantastic job at defining the way these distribution services work as well as innovating new ways to store user settings and data in the cloud. These advanced features will be difficult for Microsoft to catch-up to. But considering they own the underlying operating system, they should be able to do so.

Of course, Microsoft should also be able to fix bugs in less than seven years.

CrunchGear, however, is underwhelmed:

It'll be hard for Microsoft: Steam is a much stronger brand than Games for Windows Live, a faceless concept that evokes imperialist Microsoft tendencies and the vast, flaccid tentacles of their Live services. The only way they can make this little adventure work is by shoehorning themselves in, as they have suggested they will do with Fallout 3 DLC, and forcing a market presence. It's a certainty that they can't beat Valve, but with the amount of clout they've got, they're guaranteed at least a spot in the lineup.

Windows Live remains a bit "spray and pray" as Microsoft tries to make the services relevant and consistent. Gaming is something that Microsoft has gotten good at and the locked-in user base should be an easy target.

Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom.
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by plbyrd November 13, 2008 5:59 AM PST
"Gaming is something that Microsoft has gotten good at"

Talk about understatement! Microsoft has consistently produced some of the best and most stable games going all the way back to the 1980s. Flight Simulator, Train Simulator, Age of Empires, and many more are games that have been top-notch for many, many years. And the brand is Games for Windows, not Games for Windows Live. Perhaps your source at CrunchGear should only be quoted when they can bothered to do some fact checking.
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by i_am_still_wade November 13, 2008 6:42 AM PST
Agreed with that. Who invented DirectX? DirectX is miles better than OpenGL. In my opinion, it is what makes a PC far superior to a Mac. DirectX keeps gamers buying Windows and not switching.
by zgreenwell November 13, 2008 8:29 AM PST
Games for Windows live is a part of games for windows that includes the windows version of the Xbox Live service. It used to be paid but now its free on the PC. Mostly it is the same as Xbox live, but it is connected to the games only. Some games that use it are Fallout 3, Halo 2 PC, Gears of War PC, Lost Planet Colonies, and Quantum of Solace.
by ckurowic November 13, 2008 11:59 AM PST
@i_am_still_wade: yes, because that sliver of the market known as "gamers" (you know the type, mouth breathing, zit faced, etc) drives the entire industry and shall one day destroy all of Mac-dome......
by kenpm November 13, 2008 6:42 AM PST
I guess the news here is that these games will be Microsoft games.

"Steam and Valve have done a fantastic job at defining the way these distribution services work as well as innovating new ways to store user settings and data in the Cloud. These advanced features will be difficult for Microsoft to catch-up to..."

Huh? Microsoft has been digitally selling games and other software on Windows Marketplace for 2 years now. You can't download every game but many of them you can. Games that have the Digital Locker icon can be purchased and immediately downloaded through the Digital Locker client that has been included with Vista since day 1. So, it's not like they have to build up a Steam-like infrastructure. They just need to hook into the one they've built.

"Dave Rosenberg is currently working on a new stealth start-up based in San Francisco."

I wonder if this snarky article might be written by someone who is now competing with Microsoft.
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by PhoenixEmpyre November 13, 2008 8:02 AM PST
I think this is something that microsoft should have been the market leader, the one to initiate such an application before steam. At the least, they should have began to look into this as steam became closer to what it is today. I definately don't think it's too late because as good as steam is, they don't offer ALL PC games. They are becoming more and more popular as time goes on. Frankly, I think the gaming community will support this and so will developers because it can do DRM better than the current model.
Microsoft has plenty of leverage to be successful. They have a console that they can have interoperabilitiy with along with various devices such as cell phones. They are a gaming developers, so that would help them push that initiative. I'm not quite such how much they want to succeed in the PC market since they probably make more money in the console and software arena. I mean, if they dropped gears of war 3 on 360 and PC, they would kind of canibalize the 360. They should however realize that there is benifits to both. Some games work better on PC (RTS) , some on console (3rd person) and some work just as well on both (first person).
Steam is great, but there is so much room to improve and push the application so much further. They could do for digial distribution for games, what itunes does for music. Simply put. They just need to dedicate the engineering resources to it. I love the idea.
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by PhoenixEmpyre November 13, 2008 8:19 AM PST
I also think that microsoft should focus more on connecting all of it's many features of live while keeping them optional. For example, google has done a great job by having all of it's applications available and easy to find on one site with one ID and password. Gmail works well with the calender features, search, google docs, etc. Imagine if marketplace worked just as well with mail, messenger, skydrive, search, xbox live, with a social network aspect. It would be freaking amazing to have your marketplace saves available on skydrive so you can continue play whereever you are. It has amazing potential. PC gaming would have a brighter future than what it has with the current climate of piracy, DRM, and competition with console.
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by rodmacpherson November 13, 2008 9:01 AM PST
Funny I could have sworn that microsoft has been distributing their software digitally since the 80's
I can't remember the last time I typed any program from a book, and I don't think I ever did an MS one that way.

Disks and CDs are digital too.. I think you mean ONLINE distribution.
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by joetesta70 November 13, 2008 9:12 AM PST
The only battle now is between the PC and console, and both are Microsoft.

I personally prefer the PC and am REALLY enjoying Fallout3 delivered by Steam. As a user I really don't care who delivers it, it's just nice not to have to go get the game.

Only problem is I can't resell the game on eBay.
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by The_Decider November 13, 2008 10:09 AM PST
To PS3 and Wii are eating XBOX's lunch
by rapier1 November 13, 2008 10:47 AM PST
In july the total PS3 install based was 4.9 million compared with 10.5 million for Xbox 360. You have have a point with Wii - it had an instal base of 10.9 million. Still doesn't sound like their are eating Xbox's lunch though. The real question is who is selling the most titles. That's where the real money is.
by The_Decider November 13, 2008 10:07 AM PST
"Gaming is something that Microsoft has gotten good at"

There is a lot of irony in that statement.

They buy top notch game studios and leave them alone. That is why MS games are much better than anything else MS produces.

DirectX is a bloated joke, openGL is gaining momentum(most PC games are also available for Mac). None of the top game engine writers are interested in DX10, which is really just something to try and force people to go to Vista.
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by ckurowic November 13, 2008 12:01 PM PST
Exactly right about DX10 and Vista. I actually installed Vista just for DX10, guess what? It doesn't make UT3 look any different. Wooooooow!! (Yes my video card supports DX10).
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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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