Edwin Evans-Thirlwell: ''Xbox Live Indie Games may not have a place on the next generation of Xbox hardware, if leaked emails are to be believed.''
XBLA wasn't very friendly to indie debs to begin with if you go by the experiences recalled by Team Meat and Phil Fish. If this turns out to be true, it will be an absolute shame.
I think it's about time for XNA to be retired, but I don't think it spells the end of Indie games for the next gen Xbox. Anyone who's used XNA can attest to the fact that it's quite limited compared to what can be accomplished by other means. More likely we'll see Microsoft replace it with better support for 3rd party options, such as UDK or Unity, or something along those lines.
That's certainly what I hope for. That department is in need of major restructuring. Indie devs deserve better opportunities and less hoops to jump through.
All anyone needs to do is look at Windows 8 tiled store front game channel to understand where MS is going to go with this. XBLIG will die off and Xbox Game Channel will become the defacto release space for all those games. It's their version of iTunes/Google Play store.
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