Microsoft: XboxL arcade will eventually die, but not for a while.

Michael Wolf indicates that the Arcade will eventually "Phase out" while digital distribution continues to expand.

In an interview with Vox Games, Wolf, Microsoft's global marketing manager for XBLA, said that the service might eventually be taken down due to the increasingly blurred line between large-scale retail games and ambitious XBLA games.

When asked if XBLA would eventually be phased out of existence, Wolf answered, "Personally, I'd say absolutely, yes. I think digital distribution has to be like that. I don't think XBLA will be leaving soon. It is an incredible platform. We have XBLA fans, I don't think it's going to be announced anytime soon. One thing Microsoft has proven is that we continue to try and adapt and innovate in experiences."

However, he reported back to Xbox fans by saying:
“Xbox LIVE Arcade is and will continue to be the premier destination for quality downloadable games at a great value, boasting an ever-growing, eclectic library of hundreds of games, spanning every genre. We are committed to providing new downloadable games for Xbox 360 and continuing our work with 1st and 3rd party developers on the platform. We have no plans to dissolve the service at this time.”

So the arcade will still be around for as long as it needs to, but many people believe that it will be gone sooner than you think. Especially since Microsoft will more than likely be introducing the new Xbox console this year. But what will really happen? And again, do we REALLY need new consoles this and next year???