You Will Rent Forever and You Will Like It

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Brandon Bruno

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Sony recently shared that their Playstation gaming ecosystem will be disc-free as of 2028. Microsoft tried something similar with the unveiling of the XBOX One in 2013. Both announcements caused a lot of heartburn for a certain group of gamers that value the "ownership" of video games.

I put "ownership" in quotes because we've never really "owned" our video games - we've merely been given a license to play them and those licenses always came with limitations. The rental age has been with us for decades - discs were always about getting the bits and bytes of games delivered, not proof of ownership.

Moving Data: from Baud to Broadband

Whether it's movies, video games, pictures, whatever, there is a simple truth to content delivery: direct is best. Since the days of the telegraph, it's been obvious that instant transmission of data is far more convenient than delivering something by carrier pigeon or donkey.

The evolution of Netflix is a perfect example technology evolving content delivery.

  • Netflix's business is simple: deliver movies to customers.

  • When DVD rentals started in April of 1998, it would take the average dial-up user (56 kilobits / sec) roughly 19 days to download a full 8.5GB dual-layer DVD film. It was faster to deliver 8.5GB via mail on a physical disc.

  • As broadband internet became more prevelent in the late 2000s (with speeds of 100 megabits / sec), a full 8.5GB DVD takes just 12 mins to download. Now mailing discs back and forth is much slower than downloading.

  • Even better, broadband now enables streaming that data in realtime, meaning movies can be delivered in realtime.

The Uncomfortable Truths

The technical puzzle of how to best deliver data to customer has been solved by modern internet, but that doesn't solve the realization that we're forever renting our favorite media.

  • We used to buy vinyl records, then cassettes, then CDs, then MP3s - and now we pay monthly to stream our favorite songs
  • Movies came on VHS, then various disc formats - and now the convenience of streaming means smaller libraries, but instant gratification
  • A portable library that fits in your hands and goes anywhere is appealing for major book worms, but digital purchases are still just a license to borrow (go read your Amazon terms of service) - basically an expensive digital library with an unknown return date

There are still physical options to buy music, movies, and books, so the physicality of owning something feels real. Paying a subscription to stream or download media is simply an option of convenience. Video games going entirely digital is the ultimate form of renting, and while it's unfortunate, it's the price we pay to play.

Digital distribution is far easier for the distributor (Sony) and consumer (us). As a bonus, of course, Sony doesn't have to pay to produce, ship, and warehouse discs for games - and pocket that money for themselves. With game development more expensive than ever, this is definitely a necessary cost-cutting exercise from a business perspective. For the rest of us, our games will fade away when digital storefronts fade away years down the line.