Microsoft representative believes XBLA will die

The Xbox Live Arcade has served us countless hours of entertainment ranging from Trials HD to LIMBO and Castle Crashers, but according to a Microsoft representatitive, "the evolution of how games are delivered could signal the end of XBLA." 

In an interview with Vox Games, Global Marketing Manager Michael Wolf touched on the arcade's success, and how the entire system is evolving rapidly. Wolf believes that we're soon entering a time where we'll be unable to tell a difference between full retail titles and arcade downloads, which is quite true with recent XBLA games like Alan Wake's American Nightmare: 

“We all know what those definitions mean,” Wolf said. “We know what an XBLA game is, what on demand is, what a retail disc is. But I don’t think most people care. They don’t care how they’re getting their games, they just want good games.”

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.”

These changing trends are definitely apparent as XBLA titles become full fledged hits, and we're still pondering whether or not the next generation of consoles will even have "arcade downloads," and just have Steam-like marketplaces for all games. Do you agree or disagree with Wolf's statements? Let us know your opinions on retail games vs. downloadable titles by commenting below.