Is it true that this was coming to XBLA?
I think I heard it somewhere.
English
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I think you're thinking of State of Decay.
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Once it releases completely (will follow a minecraft style release that will be updated from Alpha onward), Rocket says he would not be against a console port. It would probably not be an arcade title.
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That would be weird to fit a game like this on an old console...
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A console would never be able to play Arma.
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Day Z isn't even related to Arma. Day Z is like taking a chunk out of Arma's chest and making it into its own core of gameplay mechanics. A standalone, free of Arma's massive engine and potential capability, could easily fit onto an Xbox or PS3. Besides, it would likely be developed for the next generation of consoles anyways.