360 requires a broadband connection anyways, so I hope people aren't playing or downloading games on it with sub-3mbps connections.
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MS has plenty of ways to give codes for things you download on xblive, how about in the download information page when you get the game and have it there for your specific xblive account? this wouldn't be something new either, I'm certain they have done it for other games in games on demand
If I recall correctly, doesn't XBL Games On Demand have a maximum game size?
If so, I would be surprised if FFXI doesn't exceed that limit.
Even if it doesn't, I would not be surprised in the least if SE would be on the hook for XBox Live-side bandwidth costs for FFXI downloads.
Additionally, in case anyone looking at this thread is thinking "why oh why would you want to play FFXI on <not a PC> when you could play it on a PC?" please keep in mind that some people prefer to keep gaming separate from other social or professional matters, and therefore intentionally keep their gaming off of their (primary) PC. It can be difficult to justify the cost of an additional PC solely for gaming, while a console system allows for a great deal of non-MMO gaming - and in the case of the XBox, also allows for playing FFXI as part of that games library - and is generally cheaper than a gaming-oriented PC that can play the same library of games.
Yes, I know a dirt-cheap second PC can run FFXI, but generally someone who falls under this use case is looking at more games than just FFXI. Your general dirt-cheap computer won't be able to run Mass Effect 3 or the forthcoming Borderlands 2, for example.
One way around a possible limit is they could make it so it is Final Fantasy XI without the expansions, and then the code you get with it would give all expansions, then it would only have to download FFXI+POL from the dashboard while the 10 expansions are given via updates on POL. I believe thats how it works when you buy the expansions separately, so in theory it should work just fine.
Also I'm not sure how much space FFXI takes. I was under the idea that the Ultimate collection was probably around 6Gigs as most games are on the 360, which would also be the same for most GoD games, meaning it shouldn't make much problem unless Add-ons/Abyssea pushes it over the limit, but those are downloaded via updates anyways so thats not very likely.
Most of that 6gb is in updated content rather than in the expansions alone, PSU was 1.8gb in size if I remember correctly so I'd imagine FFXI's base download minus the updates would be something similar, it'd easily be under any maximum size that may be in place. Then once the base download is on your HDD you'd just need to spend the three-or-so hours updating it, but considering BF3 takes a couple hours to update with the latest patches and no one is really complaining about that, I don't think it'd be much of a bother for most players, especially the patient MMO players.