No day one Games on Demand releases anytime soon

Xbox 360’s upcoming Games on Demand service will be offering full retail game downloads from the comfort of your couch once the rather sizable NXE update happens in less than two weeks time. The service will offer slightly older games like Mass Effect, BioShock and Assassin’s Creed, but those hoping to purchase new games without putting any pants on will have to take some sad news from Microsoft’s Shane Kim, VP of Strategy and Business Development for Interactive Entertainment.

While talking to Fast Company, Kim said day-and-date releases aren’t even something they’re talking about yet and that there are “a lot of complex issues to deal with” before that can happen. “[..] publishers have to do some technical work in order to enable this. There will be decisions that publishers have to make from a business standpoint. But when it comes to us saying we want Games on Demand to enable day-and-date release of new titles, then there’s certainly a lot of work we would need to go through.”

“We’re not anywhere close to that world today,” Kim added.

And then there’s the retailers, who Kim says they have a great relationship with and who probably wouldn’t be too happy if they suddenly started losing chunks of revenue to digital downloads. “We sell a lot of hardware and software through retail channels. We have to be smart about how we approach this business.”

So there likely won’t be day one releases through Games on Demand in 2010. Better wash those undies.