This pretty much says that unless your product is crap, you do a demo.
Im confident i can make a very good case for tons of average games that have hurt from releasing demos, because people find out your product is indeed average and since games all costs $60 bucks, you tend to want a great game, not a good or medicore one. Thus a demo proving that your game is indeed not great(still might be good), can very well reduce your sales.
All true to a degree, but the flip side is the 360 has seen a strong attach rate as the install base grows and in the past XBL has been contributed with part of that success.
I said demo is a waste of bandwidth if it's ineffective.
I mentioned that I'd rather spend my money on something that has confirmed value and much better utility (like dedicated server game hosting) if given a choice.
Repeating the point about dedicated servers, as if there is any correlation, doesn't make it any more true.
No one is debating demos of bad titles or bad demos of good titles can hurt sales (they can and in many cases do) but those are by no means the only metric to weigh in regard to "effectiveness." Dance around all the points about the general ecosytem and platform accessibility (and just plain and stupidly obvious points like allowing consumers to sample a product ahead of time to purchase with confidence which is a huge issue that any *service* needs to consider if they want to be anything more than a selective storefront) but the continued suggestion that somehow dumping Demos somehow creates space for Dedicated Servers for online games just shows how obstinate you are being.
It would be like repeating over and over again, "Sony should give away PS3s because they will make money on game and BDR royalties and online marketing" as if there is a direct relationship. Repeating it over and over is just annoying because it doesn't make it any more true or show you grasp how these things relate. Obviously Sony has an invested interest to deflect on the issue of charging developers stupidly excessive prices for bandwidth and the best way to deflect is to set up a proposition concerning the competitors short comings ($3-$5/mo and few ded servers?!) but there is no relationship between XBLA demos and ded servers.
As an aside, building off of NavNuc, demos may be one of the reason for the disparity gap between haves and have nots this gen. People can readily assess the differences between titles so general marketing and appeal based on 'theme', a catchy commercial, art, concept, etc are neutralized by how much pull the real product has with a consumer. This probably hurts a lot of studios with products that like refinement or have appeal but don't "click" with consumers. This, on conjunction with the increase in social gaming online, really changes the dynamics of the industry.
As we have seen with Trials HD a good game with a good demo can result in stellar sales. This doesn't negate word of mouth (look at Braid) but I am sure there are games that, if there were no demos at all, would do better because frankly they cannot compete on a "level" playing field. But that isn't necessarily bad for a platform or consumers (both good actually) and for the industry this form of self criticism should draw more attention to releasing quality products. That said XBLA games sell relatively well and from a console perspective platforms like Live are effectively new outlets to reach consumers. Look at Trials HD: it about tripled its sales compared to the Steam version in 1 month on XBLA. I find it is interesting that the "Sony talking points" don't point to the obvious conclusion regarding effective/ineffective demos:
Let consumers choose which demos are effective and ineffective.
We are the best guide to what we want--not MS/Sony and not even developers. But this comes back to is your online platform a
service or is it a
storefront.
As a strategy the benefits of a consumer and developer centric service cannot be taken in simplistic isolation.