The Xbox Live Arcade was one of the best features of the Xbox 360, giving players access to thousands of smaller titles that wouldn’t otherwise have made it to market. However, it turns out that some executives at Microsoft were worried about the consequences of the service, with some even having fears that it could eventually lead to the end of the console industry.
The information comes from an interview between XBLA creator Greg Canessa and IGN on a recent podcast. Canessa explained how many higher ups didn’t quite understand what he was trying to do. One belief was that “five and ten-dollar price points” would go on to “destroy the economic model of console retail publishing and destroy the industry.”
“There was a legitimate fear that Xbox Live Arcade was going to cannibalize retail sales and completely destroy the console industry,” Canessa said to IGN. “That was actually a quote I got from one of the internal folks.”
Canessa was eventually able to convince enough people inside Microsoft that this wouldn’t happen as the XBLA featured different gaming experiences from traditional retail releases. It’s a good thing too, as it meant gamers got their hands on the likes of Super Meat Boy, Fez, Limbo, Braid and Shadow Complex, while the indie scene got a significant boost.