Titles not offered at launch through Xbox Games on Demand to keep from cannibalizing retail

Microsoft doesn't release new Xbox 360 titles through its Games on Demand services at launch because it doesn't want to take sales away from retail, according to senior business manager Erik Yeager.

Yeager said that while the service isn't lagging behind as much on releases as in the past, it still tries to give retail a head start.

"We have a lot of strong partnerships with retailers," said Yeager during a Joystiq attended MIT Business in Games conference.

"We really need them to do a lot for us. They're the ones out there selling the consoles, selling the peripherals and, in this time, we're trying to figure out how to fit that in to the whole digital landscape shift. We're just taking a bit of a measured pace with it.

"We really strongly believe it's important to have these retail partnerships and the ability to sell our console is the most critical thing for us. If you don't sell the console, you can't sell anything else."

It remains to be seen whether Microsoft will change this strategy to become more in line with Sony and Nintendo when it launches its next Xbox console.