[Hack&Lube]

Microsoft can't just come out and say $5 games for everyone! (ala the Steam model is what won everybody over in the first place on that platform).

It'd be great if they could convey to the consumer the idea of that possibility because of network software distribution and DRM licensing but as long as you are dealing with a physical games model, people are going to keep thinking of software as $60 in a box and not realize you get charged that much because developers need to recoup more on the original point of sale.

They could completely destroy the PS4's physical game model if they were able to negotiate Steam like $5 or $10 blockbuster games. People won't care about any of this always on, DRM, etc. stuff anymore when the prices are that low except for remote users with no internet access (who are the type who wouldn't use a Steam model anyway). Sony could respond back with their own cheap online distribution model as well but they wisely chose not to tie in the physical game portion of their system to the online service portion.

In the end, Sony gave consumers choice while Microsoft went in one direction only. Microsoft is forcing gamers into this model whereas Sony has the leeway to wean customers off connection-less physical games and onto licensed digital distribution over time.