Starting April 15, no original Xbox game will be supported on Xbox Live.

FEB. 5, 2010 • Original Xbox owners learned that as of April 15, games for the platform will no longer be supported on Xbox Live. Microsoft Corp. also announced that all Xbox Originals games purchased via Xbox Live for the Xbox 360, and boxed Xbox titles optimized for the Xbox 360, would lose XBL support on the same date. Microsoft said planned enhancements to the online service were incompatible with titles developed for its first video game system.

Impact: Video game publishers are facing a consumer value proposition problem they may not be aware of. Digital distribution is a seductive opportunity. Costs are lower, control over content is greater, and the inclination will be to leverage these advantages at the same MSRP as retail boxed copies. The pot hole lying in wait ahead is that consumers see risks in digital distribution. They worry about what happens if their computer or console dies, and can they get replacement content. They worry about whether they can take their game to a friend’s house. Every time a publisher like Microsoft cuts off online access to content, or Electronic Arts eliminates another swath of gamer servers, it reminds consumers about the risks of online access to the game they paid for. Paying $2 for a iPhone game is low-risk. Discovering your $49.99  purchase just lost a major online feature set only reinforces the notion that full-price online gaming is a risky business.