I understand your concerns, but I don't believe that things will be affected too much by this.
If Microsoft only shipped the one "premium" SKU with HDD included, game manufacturers could take for granted that it would always be there... after all, everybody's got one.
But making a game that is dependent on the HDD is a double-edged sword; sure, you get to do cool things like caching information to the HDD and saving files to it (indeed, to save ANY game progress, you'll need a HDD or a memory card). But since they are removable... what would happen if they aren't attached to the system? What would happen if you take your HDD to your buddy's house and come back home with his? What would happen if, heaven forbid, the damn thing crashes?
J Allard's words to manufacturers: "Don't expect the HDD to always be there." Not only the attachment issues, but also hinting at a possible move to *network storage* in the future. Imagine that? Saving games online, without a HDD. Manufacturers being able to make games for *both* SKUs that stream data to and from the Interweb. When you think about it, the choice to make the HDD "optional" is really a decent way to make publishers think "outside the box" so to speak.
And for the record, upon checking around this past weekend, NOT A SINGLE PERSON at ANY of the stores I went to wants the Core system. None. So how many Core systems will be shipped here? None.
Sure, I'm certain that some publishers frown upon it, and others (read: Square Enix) say on their game that it DOES require a HDD, and if you are silly enough to buy a Core system, you'll need to ante up for the HDD to play FFXI. Tough luck. Could other companies follow suit, and just say "hell, let's make our game require a HDD too, so we have more bells and whistles?" Of course they can, and in the process of doing so disenfranchise the new gamers that Microsoft is trying to draw by offering the more "cost-effective" system in the first place.
Thus, rest assured that some manufacturers will use the lack of a guaranteed HDD as an excuse to piss and moan that "well if we knew there was going to be a HDD then we'd be able to cache and stream." Or, they could learn that caching to memory is faster. They could look at the specs and see that there's 8 times as much memory on the 360. They could *gasp* learn to adapt.
Or they could say "Phucket. You need the HDD to play our games."
Saying Microsoft is at fault for not "standardizing" the HDD is copping out, IMO.
Secondly, the choice to go (at least for right now) with the 12x DVD instead of the new emerging Blu-Ray or HD-DVD. When new optical drives come out (think back to CD-ROMs and then CD-Rs and then CD-RWs and then DVDs and so on), because the media is changing, the reader needs to adjust rotational speeds to interpret and correct any errors in the data rate. DVD has been out for years now, and since those first drives (which transferred data at a rate of 1.25MB / sec), we're now at 15MB / sec on the 360. Keep in mind that ROM data is usually compresed, so by the time that hits the processor and it unravels it all, there could be much more than 15MB of data in one second.
What about the size limitations? Some say that a sual-layer single-sided DVD (9.4GB size) isn't enough... "we need our Blu-Ray with 50GB of space for HD cinematics." But do you want the transfer rate of a 1x Blu-Ray or a 12x DVD? Statistically, 95% of the first generation XBox games all fit onto a single layer. Compression for the 360 is even better, so this shouldn't be a problem for right now.
My question is what will happen if Microsoft standardizes on HD-DVD in a year or two?
I'm hoping for either a) 360 recall, they install the drive and send it back b) trade in policy (bring us your old 360 and get a new one free or for low cost) c) separately purchased HD-DVD drives that could be front-loaded and installed when the faceplate is removed.
What will the future really hold? I can't say. I can say that up to today, neither Sony nor Nintendo is planning on putting an HDD on their console "standard," so whatever companies decide to do with their 360 games is likely to establish an industry precedent for the late arrivals to the HD-generation.
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