itch.io

The headline of the day is Playstation's unfortunate but inevitable move to end physical media games. We all saw this coming a mile away, but it still hurts.

I would hope I wouldn't have to explain the benefits of physical media, but for those who advocate for an all digital future, ask yourself if you are okay with the idea of corporate overlords taking away from you what you have purchased. You buy a full priced digital game today and one day in 2035 you get an email that tells you that you will lose access to that game. I don't like being an alarmist online, but you're naive if you believe this isn't where we're heading, or at least possible. This brings me to Itch's opportunity.

I see a market for a low-powered console to exist. Leave it to the big three console manufactures to push the envelope of graphics and hardware. If you're here on itch, you likely have an appreciation for games that aren't just trying to be on the cutting edge of graphics fidelity. The required hardware to run 99% of the games on itch would be a device such as a Raspberry Pi. In fact, the latest model Pi is VASTLY more powerful than what would be required to run nearly every game sold on itch. And there are many other single board computers which would be more appropriate for gaming such as the Orange Pi. But realistically, if a company like itch were interested in this, they could easily develop their own board based around an ARM chip like an RK3588. That chip has integrated graphics which could easily outperform sixth generation consoles and supports modern OpenGL and Vulkan. By the way, this chip costs $48.00 USD.

So this would be a low cost console capable of running PS2 era games. There would be extra costs of course, because you can't just sell a PCB to customers. And the board would need connectivity like an ethernet port, and probably a bluetooth module to support wireless controllers. But let's give a rough estimate of < $100 to manufacture the board.  They would need to design a shell to house the board. Cost per shell from an injection molding company would be pennies. A controller would need a similar design process and add a small cost. It wouldn't require a massive, over complicated network backend like Xbox Live or anything. It would only need a minimal frontend, similar to what a PS2 or Xbox had. It would boot from Linux Kernel to a simple frontend and just launchs games. Nothing overly complicated about it and simple to develop. 
All this to say, I think they could manufacture and sell a low powered console like this for less than $200. I know itch isn't Valve, but I wouldn't exactly call them a startup at this point either. They can pull strings.

But here's the real benefit of doing this. Now that they have an affordable console, they can start selling real, physical games. Ones that can sit on your shelf indefinitely. And ones that can't be taken from you.
Itch would be the ones duplicating the games themselves and selling them directly to consumer. By the way, I imagine this little console running games from flash memory, not disc. Flash is fast, it's solid state, no moving parts. Something like an SD card (fat style not microSD). They can be purchased off the shelf and wholesale fat SDs are probably like a dollar at this point if buying wholesale. They could easily print sleeves and manuals as well. Not very expensive to do this either and again, could all be done in house by Itch. It could be done by a third party but would then be more expensive.

If I were itch in this position, I would curate which games deserved to have physical editions. Or allow itch developers to submit a request to have a physical edition sold by itch, and if approved then any developer could have their game offered as a physical copy. It would be unwise to print 1000+ copies of every game. They could literally be print on demand. Maybe when a game first gets approved they print like 20 copies or something just to have on hand. Then afterwards, could be print on demand. Or judge how many to keep on the shelf for shipment based on previous sales. Itch takes a small cut and enough to cover the cost of printing that unity, the rest goes to the developer. 

So TL;DR: Itch creates a new division which develops a small, low cost, low powered, cost effective little console which they sell physical games for. Itch earns profit, customers who want physical games can have them. Garner attention to itch and it's developers simultaneously making everyone happy.

*Edited for clarity

This was tremendously good. I hope you plan to expand on this into a longer experience. You should change NOTHING. Thank you!