One of the interesting aspects of the recently announced “New Xbox Experience” is that gamers will now be able to install/copy their games onto the hard drive. This will be a welcome feature for many people, and I really commend Microsoft on making installs optional (as they should be), however they just missed the mark on making it perfect. The lowdown on it all and how they can make it better after the jump.

The Benefits

There are three major potential benefits to installing games onto the hard drive. As it stands now the Xbox will realize two of them: speed and noise reduction. Microsoft has said that their own internal testing showed approximately a 30% improvement in loading times. This does come at the cost of having to install the game at some point. Although Microsoft told reporters than it only takes ten minutes to install Devil May Cry 4, which is half as long as the PS3 version’s install takes. In my book, a 30% improvement in loading times is easily worth a ten minute install.

The noise will be greatly reduced because of the DVD drive. Most users don’t realize this, but most of the noise of the Xbox 360 is caused by the very fast DVD drive, not the fans. With the game on the hard drive, the DVD won’t need to spin. No spinning, no noise.

The Third Benefit

There is a hitch to all this though, and this is where Microsoft misses perfection. The third potential benefit is not needing the disc to switch games, and the Xbox 360 will still require your game to be in the drive. This is of course an anti-piracy measure, and would be understandable for all games that have already been produced.

I’m suggesting that Microsoft should change how their games are sold. Every game should come with a code that, when entered during an install, would allow gamers to play without inserting the disc. These would be one-time use codes similar to the codes you can already buy at brick-and-mortar stores for Xbox Live subscriptions and Xbox Live Arcade games.

To make this user friendly the game would have to still be playable in the drive without ever using the code. Of course that would open up the opportunity to buy the game, install it, and give it to a friend or sell it used.  To combat that they could make it ask for the disc on some regular interval, say somewhere between one to three months, to verify ownership.

This would really make for a seamless experience of getting an invite to join another session in a game you aren’t playing and/or don’t have in the drive. It may be a small thing, but I hate it when I get an invite to Halo 3 only to realize that Guitar Hero 3 is in the drive. :)

Digital Distribution

All of this is of course baby steps toward digital distribution. There really shouldn’t be anything stopping Microsoft from selling me my games via Xbox Live especially with the new 60GB Xbox 360 on the horizon. They already do it for classic Xbox games, and a lot of free demos are well over one gigabyte. Microsoft will also let you re-download anything you have already purchased if you are worried that you may need to delete the game for space too.

What do you think Microsoft? You still have time to include this in the “new Xbox experience”. Using discs was so Xbox 360 1.0.