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On The Future Of PC Games At Retail

Thanks to GameSpot for their article debunking rumors that EBgames and GameStop would entirely remove PC titles from their stores in the New Year, but still painting a somewhat bleak picture regarding the PC game's strength at retail. The article cites recent GameStop SEC filings showing "...just seven percent of its total sales were PC games, compared to 64 percent of revenues coming from console games." A games analyst also commented that, while a complete denuding of PC racks was probably out of the question: "It wouldn't surprise me if there was a pretty serious cutback in shelf space though, as that demographic is really only served by a handful of games." Although EBgames' top policy-maker clearly states: "PC games are and will continue to be a very important part of our business", with such a relatively small market share, where does the PC gaming market go from here at retail?

26 of 98 comments (clear)

  1. Console Computer by The-Bus · · Score: 5, Interesting

    Let's see, a quick run-down...

    1. Consoles are cheaper over the long-run. A new PS2 or Xbox is cheaper than most bleeding-edge video cards.

    2. You can rent and borrow console games. $5 gets you a couple of days to try/beat a game.

    3. Console games are more social. You play with friends along side you. Outside LAN parties, it doesn't happen often with PC games.

    That said, PC games still have some definite advantages (internet, mods) and strengths in certain games (RTS, RPGs, FPSs), but that's slipping all the time.

    My $0.02.

    --

    Small potatoes make the steak look bigger.

  2. One word possibility by Dark+Nexus · · Score: 2, Insightful

    Online.

    Seriously. Shelf space is in a warehouse is probably cheaper than shelf space in a retail environment. Plus, you can choose a location for the warehouse where rent is cheapest, and still cover all the markets.

    Also less shipping fees (pass the shipping charges for delivery to the person buying the game directly), not necessarily needing as much stock on-hand (expect 2-3 weeks for shipping kind of thing).

    It may not be out of the question for someplace like EB to reduce their in-store stock to a minimum and have a "Find more games at www.ebgames.com!" sign above the shelves.

    --
    Dark Nexus
    "Sanity is calming, but madness is more interesting."
    1. Re:One word possibility by Zathrus · · Score: 2, Insightful

      This would require game makers to seriously rethink how they do copyright control -- obviously SafeDisk and similar protection schemes wouldn't work if you never get physical media.

      Of course, there's the issue that not everyone wants to download several gigs worth of data (especially modem users -- yes, there are people who still can't get broadband. One of my coworkers is among them... he's simply too far from the CO).

      I suspect for the copyright issue everyone would move to a key authorization system like MS and XP, or to an online registration system like Steam is supposed to offer.

      I still think the reality is that the mall stores simply aren't where people go to buy PC games. After all, how many people bought their PCs from a mall store?

  3. PC Games bought elsewhere by Zathrus · · Score: 4, Informative

    I suspect that most people simply don't buy PC Games from EB or GameStop, but instead from CompUSA, BestBuy, or similar.

    Why? Because they're cheaper. Almost every game will come out at one of the mall stores for $50 and be available at CompUSA, etc. the same day or a few days later for $40. And they rapidly fall to $30-35 (except for the hottest titles), while the mall stores keep them at $50.

    I don't question that console gaming is more popular than PC gaming, but I don't think that's the whole picture here.

    1. Re:PC Games bought elsewhere by neglige · · Score: 2, Insightful

      Because they're cheaper.

      Yep, I always find that games in stores are much more expensive than in any online shop (Amazon, for example). Maybe personnel, rent, heating etc. all increase the price somewhat, but I don't need any advice on games and I buy from whoever offers me the best price.

      Anyway, I always check out other offers from the store while I'm there, so I may not buy a game but instead pick up a DVD or CD. And I think this is common behaviour. Removing PC games completely from a store is probably not a smart solution.

      --
      My cats ate my karma. They also wrote this comment.
    2. Re:PC Games bought elsewhere by hymie3 · · Score: 2, Informative

      My EB and CircuitCity both price match BestBuy. Unless I know for *CERTAIN* (ie, i've already got a pirated copy) that a game is going to be good and will work with my system, I *REFUSE* to buy from BestBuy. Their return policy is the pits. Basically, if it doesn't work or if you don't like it, tough. They'll be happy to give you another copy to replace the working merchandise, but woe to those who get suckered in by lousy games (FF7 for PC was one that really nailed me) while shopping at BestBuy.

      EB's one week no-questions-asked exchange policy is a clear win for me.

  4. Wow by gasaraki · · Score: 4, Interesting

    I had no idea the market share for PC games was so weak. I guess I understand it, but I still don't like the sounds of it. I own consoles now, and probably always will, but there are just some games that work best on a PC... and it'd suck to have those sort of games die out. I suppose with all the recent controversy about bad "console to PC conversions" (e.g. Insible War) it should have been more obvious. In the olden days it was all about crappy PC-to-console conversions, now it's starting to go the other way around.

  5. Bargain Bin by Anonymous Coward · · Score: 3, Interesting

    I buy plenty of PC games, but most of them at discount prices a year or two after they are released. I went into EB the other day and picked up Civ 3 (with full manuals) and Civ 3 Conquests for AU$60 (about US$40).

    I also got Deus Ex for AU$10, Thief 2 for AU$5 and Return To Castle Wolfenstein for AU$20.

    The full-price PC games sit on the shelves for ages, but as soon as they hit the bargain bin, they sell like crazy.

    I haven't paid more than AU$40 for a game in a long time, and I know a lot of people who do exactly the same thing. The games may be older, but the value for money is a lot higher.

  6. End of shrinkwrap PC games positives by techiemac · · Score: 2, Insightful

    Ok well I love PC games just as much as the next guy (LAN Parties, RPG, BF1942, etc) but the end of PC Games could be a positive for Linux and a negative for Microsoft. Lets look at a big driver of PC sales... games. Driver of PC hardware... games. Why home users often use Windows vs Linux... games.
    Before I get flamed about "yada yada games exist for Linux", there is only a small number of commercial Linux games and those are not available in your local Best Buy/CompUSA/GameStop/etc. Joe Blow wants to have his games run on his PC with a minimal amount of fuss. So that's why Windows is often seen on home user's PCs. Governments are moving away from Linux since they don't have a large investment in gaming where as you average home user does. That and they're sick of dealing with the security holes on Windows
    The one issue that I see with the movement away from PC games to Console games is the modding community, which, as we all know, is becomming an industry unto itself. This could be mitigated with modding tools on the PC (developer mode) and network based distribution to the console.

  7. Surprise surprise. by Anonymous Coward · · Score: 3, Funny

    EB, Gamestop, and Babbages have filled their stores with console games, joysticks, movies, action figures, magazines, and loads of other crap.

    Whereas PC games used to take up 95% of the shelf space, they now take up maybe 10% of the space in the store if you're lucky.

    So is it any wonder that PC games make up only 7% of total sales? People re still buying PC games, they're just not going to EB or Gamestop to GET them, because the selection is so poor.

  8. Why whine? by SuperMo0 · · Score: 2, Insightful

    PCs have an advantage that works against their retail sales, in that you can always go and make your own game if you feel like it. It's a LOT harder to get your hands on an SDK for a console than it is, say, for Flash or Half-Life. The software development community for PC, and the sheer NUMBER of games available for free download, is what people are always going to be attracted to on computers.

    That being said, I think that's the main "problem" with retail sales. I think that people are becoming more and more content with downloading their games (legally or not) rather than buying them in the store. It's easier, cheaper, and doesn't require you to get up off of your ass. Steam is headed in the right direction. You need to charge for DOWNLOADING the game. You'll get a helluva lot of people who are willing to let the game download overnight rather than go out and buy the game. Laziness RULES!

  9. Piracy by krelian · · Score: 2, Insightful

    One of the main reasons why PC games are less popular is that they are very easy to pirate. While consoles use their own media format (gamecube) or DVD (ps2,xbox), games that are shipped on regualr cd's are easier to pirate.
    In order to run a pirated game on a console you'll have to limit your self to a chopped version of the game either because DVD downloads are very big or because of the lack of a DVD burner. Gamecube piracy is even less common than the other two consloes because it uses a special format speciefically designed for that console. It is currently rumored that sony and ms will also use a unique media format for their next gen consoles as well.
    Besides, in order to run a pirated console game you need to buy a third party Mod Chip that will cancel your warranty the second it is installed on your console.
    Even though i see piracy as the main reason for weakness of PC gaming at retail their are of course other easier to point reason:
    - Consoles are cheaper than a mainstream PC
    - PC's have to be upgraded regularly in order to
    achieve optimal performance.
    - Console games are run right out of the box - no
    configuration needed.
    - Console games are less buggy. Many PC games
    require numerous patched until they are finally
    working the way they are meant to be.

    Personally i am sorry to see this decline in PC game sales. As much as like console gaming, some genres will never work on a console , not to mention the user created content that is only available on a PC.

  10. agree 100% and more. by *weasel · · Score: 5, Insightful

    your missed points are:

    4. Stability. You don't buy a console game on its release day, and then go home and download a 1.1 patch.

    5. Ease of Use. Consoles require you to merely pop in the game and go. there are never patches, drivers, installs, video/sound configs, or any of that stuff PC gamers put up with.

    6. Glitz. Console games are optimized to their fixed hardware. Halo on my xbox looks just like Halo on your xbox. I never have a friend tell me how awesome a ps2 game is, but find out my ps2 isn't fast enough to play it well.

    7. Integrity. in online console gaming, it is possible to guarantee that no-one is cheating. Add to that the consistant matchmaking interface and features across a console, and it's no wonder that MS can successfully charge for their online service. It's miles above the average quality level of PC internet gaming.

    8. Return Policy. Should a console game be found to be buggy, or even just not what it was advertised to be -- you can return it. This can not be downplayed. PC games cannot be returned in almost any case, yet console games can. Regardless of why (and we all know why) the point is that consumers will always gravitate toward the solution that is the most friendly. being able to rent, borrow, and return games is a gigantic benefit.

    At the core though, consoles and their games are intentionally refined for the mass market. Very smart people spend alot of time making sure they are as refined as possible. they are more like appliances than tools. It just shouldn't be surprising to anyone that consoles are the preferred mechanism for gaming for the mass market.

    PC games seem to have a market despite themselves. the hoops that fans jump through, the costs they deal with, the hassles of the menus and setup options, the limitations on the product the paying customer faces (in the name of 'copy protection') -- it shocks me daily to see how PC game fans put up with it.

    --
    // "Can't clowns and pirates just -try- to get along?"
    1. Re:agree 100% and more. by CompressedAir · · Score: 2, Insightful

      It's the truth.

      When someone comes out with a major console that lets me play using mouse and keyboard (or mouse and "keyboard"), I will buy it and probably never play on the PC again.

      Until then, though, PC all the way. My favorite games are strategy and FPS, which just bite on those twisty controllers. I'll gladly put up with all the PC patching and upgrade crap to play my favorite games in the manner I want to play them.

      The low res on TVs bug me too, but that's a transitory problem.

      If you could play the XBox with mouse and "keyboard," it would be the perfect console.

    2. Re:agree 100% and more. by Zathrus · · Score: 4, Insightful

      4. Stability. You don't buy a console game on its release day, and then go home and download a 1.1 patch.

      And you damn well better hope that it's stable and bug free. Because if it isn't -- well, too bad. You can't patch. Xbox changes this for Live games, but not for the majority of games.

      6. Glitz. Console games are optimized to their fixed hardware. Halo on my xbox looks just like Halo on your xbox. I never have a friend tell me how awesome a ps2 game is, but find out my ps2 isn't fast enough to play it well.

      And it still looks far, far worse than a PC game. You don't have the resolution, you don't have the polygon draw, or the fill rate of even a cheap PC video card. Resolution is a huge issue -- even HDTV resolutions aren't as good as PC resolutions (although ATSC realistically provides good enough resolution, it's still possible to do better on PC). Color depth sucks deeply too (NTSC just plain bites; ATSC is good though).

      Playing on a big screen is nice, but you can do that with a PC too. Works best if the TV has VGA or DVI inputs, obviously.

      7. Integrity. in online console gaming, it is possible to guarantee that no-one is cheating.

      No it's not. SOCOM2 on the PS2 is a perfect example of this. Xbox Live isn't hacked yet, but if you think it won't ever be then you're living in a dream world. Punkbuster, Steam, and other anti-cheat measures have made significant inroads on the PC as well.

      8. Return Policy. Should a console game be found to be buggy, or even just not what it was advertised to be -- you can return it.

      Really? That's certainly not the policy that was given to me the last few times I bought a console game -- from EB, GameStop, or BestBuy.

      the limitations on the product the paying customer faces (in the name of 'copy protection')

      Oh that's a laugh. Yes, there are annoying limitations put on games in the name of copy protection. Are you even trying to tell me that it's better in the console world? Last time I checked, all the console makers made it pretty damn well impossible to backup your media without going through some amazing contortions. Sure, it's the same thing in the PC world, but to try and list this as an "advantage" is complete and utter BS.

      the costs they deal with

      The much discussed costs are BS. My previous PC (Athlon 750 w/ GF2) cost me around $1000 and lasted for nearly 3 years. Every game I bought was $35 or less, and the system was used for far more than just playing games.

      If you buy a console when it's brand new then it's about $500 with a memory card and second controller. Each game is $40 or $50 and doesn't drop in price for months or years. Used games are often no more than $5 cheaper than new. It'll last you about 4 years, but since you need a $500 PC as well (if you want to surf the net, do taxes, balance your checkbook, or anything else a PC can do that a console can't) then you're going to come out about even once you factor in game prices. If you're smart, you'll sell games once you're done with them and come out ahead -- but that's about the only way the numbers come better for the consoles once you look at the whole picture.

      Oh, and the games probably won't be playable on the next generation console -- the PS2 and Gameboy Advance are the only ones that have broken that mold, but the next generation consoles aren't currently looking compatible (the Xbox2 almost certainly won't be). That's rarely an issue on PCs (yeah, there's ancient DOS games that have problems running under Windows, but there are workarounds available; and that PC can also run the ancient arcade and console ROMs too via emulation).

      I'm both a console and a PC gamer. People who try to spouse bullshit about one platform or the other just show how little they know. There are a lot of positives to the console experience, but there's a lot of negatives too -- particularly in the lack of configurability and controls. Certain game genres, like F

    3. Re:agree 100% and more. by Anonymous Coward · · Score: 2, Insightful

      RTS is about the only genre left that can appropriately leverage the keyboard in a good control scheme, and just a controller approximation doesn't quite cut it. (though goblin commander has an applaudable attempt at good-enough RTS controls. but their scheme does limit the scope of the combat through a too-low group-limit.)

      well that and the perfectionist sims, which have always been less 'game' than 'training module'.

      but, imo, the primary reason that MS doesn't push the keyboard+mouse is mainly perception. people already thought it was a cheap trojan to bring over lazy PC-ports. and console gamers are notorious for not putting up with bad control schemes (something the keyboard allows more than the controller).

      though i always thought that if i could get a wireless keyboard and mouse, and they put a web browser and email client on my xbox - i don't know how often i'd even use my PC after that.

      particularly since the karaoke widget they have allows me to browse pictures and listen to mp3s from a network share.

      now if they'd just let me run mpg and avi, it'd be heaven.

    4. Re:agree 100% and more. by JediSB · · Score: 2, Informative

      The specialty chains (which really is all just rebranded gamestop outlets now)

      Not entirely true. EB and Gamestop are competitors. It is true that Gamestop owns Babbage's, Funcoland, Software Etc., and Planet X. And Gamestop Inc. is owned by Barnes & Noble. As a part time GS employee we heard rumors last year that GS was going to buy EB but it never happened.

  11. PC games purchases will move online by shunnicutt · · Score: 2, Interesting

    I've been a Macintosh owner for years, so a dearth of software titles at retail locations is a familiar situation.

    If this trend continues, PC gamers will be doing the same thing that Mac owners have been doing -- they'll get their goods online or through the few retail outlets that continue to offer them.

    I doubt very seriously that PC gaming is dying because less retail shelf space may be devoted to PC games. As the Mac shows, a platform's survival is not dependent upon a single sales channel.

  12. Cheating on consoles by raygundan · · Score: 4, Insightful

    Actually, cheating on consoles is a bit of a mixed bag. If someone DOES find a cheat, the unchangeable hardware and software make the cheat unstoppable. SOCOM for the PS2 is a prime example of this-- the game has been ruined for online play by rampant cheating. And there's no way to issue a patch to fix it.

    That "fixed platform" is both a blessing and a curse-- if the software/hardware isn't perfect, you've got cheats set in stone.

  13. Maybe it's a "Catch-22" by g051051 · · Score: 5, Interesting

    My local game stores (EB Games, GameStop, etc) have a small PC section, in the back, with the games lined up like books so you just see the edge. They aren't sorted by name, developer, or genre. They're just shoved up there randomly. On any slightly busy day, you can't even get back to them to browse because of the crowds.

    The console games take up the front, well lit areas. They are laid out facing the customer, with decent spacing between the titles. Each console has more wall space than the PC games. Until relatively recently, even the Dreamcast had more space in some of the stores.

    Even in the larger stores (Best Buy and CompUSA), the PC game section has been shrinking while the console section has been growing.

    So, it's been getting much more difficult to buy PC games at these stores. So what does that do to sales? Sales go down, the stores stock less PC games, leading to lower sales, etc.

    On the other hand, these stores are very tiny. PC games are in large, non-uniform boxes (this has been changing in recent years, but not enough) compared to the standard size of console game packaging. They can store more product more efficiently with console games vs. PC games.

  14. Should go to online sales by indros13 · · Score: 2, Interesting
    With a broadband connection, I'd just as soon purchase a PC game over the internet. Either ship me the retail box or let me download the game file (maybe a CD image).

    The disadvantage is primarily in marketing...you can't get people to impulse buy a computer game as easily if they have to go searching for it on a website as you can if they are browsing a store rack.

    --
    Under capitalism man exploits man. Under communism it's the other way around.
  15. boy i can smell the hickery sent already ;) by vanillacoke · · Score: 4, Insightful

    9. Lack of options. There's one thing that everyone loves/hates its options. I like how the option of playing a game at 1600x1200 at a very high refresh rate with eye candy set to max. Standard TV's, while big are still outdated. My monitor is bright, large and less eye damaging then your average 24 in TV. (To be fair the xbox does theroticly support 1080i but you could not seriously play a game like halo on that setting. the reality is its can handle 720p)

    10. Controllers. They aren't the best input devices for every game. Have you tried playing a FPS on console?

    11. half-decade self life's. Face it. Consoles are going to die out ever 3-5 years. That's a 300-400 dollar investment in one shot. Some systems are slowly letting you play older games, but that may or may not catch on. Current unsubstantiated rumors of the xbox2 all indicate that Microsoft's going towards a largely proprietary system then glorified pc.

    12. Different systems. Hell you don't know what's going to be around in a year or so. Sega, 3DO Atari all died out leaving everyone high and dry... Plus now that games are shipped to all 3 systems which one do you get? The game cube get systematically jew'd with options that the Xbox and ps2 get (example: XIII. Of the 3 systems Xbox got xbox live support and downloadable content, ps2 got a lot of multiplayer features, and gamecube got nothing).

    13. Content lockout. I don't know about you. But I know I can buy a game from Europe and know it will play on my PC here in America. Not so with consoles. Either physical or software lockouts inhibits us from buying from other regions (say Europe or Asia) in attempt to preserve profits. The only modern system i know that doesn't lock people out is the gameboy...

    --
    The secret to getting modded up is to allways say i've got karma to burn in your sig..
    1. Re:boy i can smell the hickery sent already ;) by JediSB · · Score: 2, Insightful
      11. half-decade self (sic) life's. Face it. Consoles are going to die out ever 3-5 years. That's a 300-400 dollar investment in one shot.

      And new video cards come out about every 6 months or so, and cost just as much, if not more. Plus, a new version of DirectX is released every year to 18 months and you have to have the new cards to use the new DX features. At the very least your still looking at a "required" upgrade about every two years to keep up. Not to mention possible CPU upgrades, which could lead to mobo and memory changes as well. I really don't think your point is valid.

  16. The Price Problem.. by JavaLord · · Score: 2, Interesting

    PC games have two problems in my eyes. The first is they are overpriced, and the second is piracy. As much as the game industry would like to jump up and down and blame piracy for their prices, it's BS.

    Here is a real life example, a friend of mine went to EB to buy Jedi Acadamy (A game that came out a few months ago). He wants to play Jedi Acadamy online, even though there is a small community (maybe about 30-50 players online at a time on all of the servers put together). They told him it was $50. He asked for a used version and they told him $44. He promptly told them he was going to buy it from ebay or pirate it.

    I think PC games should go the way of ITunes. Cut out the middleman and sell the games for $15 - $20 a piece. Most of the documentation that comes with games nowadays is incomplete or poor. Gamefaqs usually has better documentation than most games ship with.

  17. Rolled in one by MMaestro · · Score: 2, Interesting
    All your points, and the parent post's, are correct but I think you're wrong when it comes to the core. I think the core issue is people's the ability to invest and finance their money in something over a long period of time. When you get right down to it, what is Joe Average going to leap onto first?

    A) A budget PC for net surfing and a console for gaming. Average cost of Budget PC : $500 USD. Average cost of console : Between $100-$200 USD depending on which system you get. If you want you can throw in an extra $100 to get some more games and the total comes out to be about $600-$800. Damn near some of the high end video cards, but not even a scratch on the ultra-powerful gaming PCs (which have been known to hit the $5000 mark).

    B) A mid-range gaming PC for both surfing the net and gaming. Average cost of mid range PC : $2000. Lets be generous and say he gets all his games for free from his "friend". Total cost : $2000.

    Simply put, unless Joe Average gets the computer bought for him or for free, hes not going to make the PC his system of choice for gaming. Now if you're pulling in a serious cash flow, $2000 isn't much, but I can tell you right now, for anyone under the age of 21, dropping $2000 for a system which you KNOW will be outdated in about 1-2 years (I say 1 since Doom 3 and Half-Life 2 will kill most off) is no easy task.

  18. Bullshit console owner doubletalk by SmallFurryCreature · · Score: 2, Insightful
    No patches. Yup indeed. If a game has a bug on a console then you are screwed. So bugs don't happen right? Well Knights of the Republic had a very long list of bugs on the X-box. They just left them? Or do they patch them via x-boxlive? I personally walked into the bug on the game "broken sword" on the gameboy. NO FUCKING FIX and NO MONEY BACK. If a pc company tried that they would be lynched. Nintendo. Oh well they are so cute.

    Further more certain games come with enhancement patches on the tv. They fix game inbalances that only come to light after thousands of people have played it. Or add new features like maps, skins or levels. Or in the case of my favorite racer, grand prix legends, new drivers to support hardware that came out after the launch of the game.

    But sure consoles are better and cheaper. Cheaper eh? Well lets discuss that one. Wich console did you type this post one? So you own both a console, a tv and a pc with monitor? Perhaps the same price in total as my pc geared to playing the latest games? (No I don't have tv now you mention it)

    Also check in the shops for the prices of console and pc games. Over here in the netherlands pc games retail between 40 and 50 euro. Console between 60 and 70 euro. Mmm, be a bit hardcore in you playing and it adds up. Also pc games drop far sooner in price then console games.

    Sure the gamecube is now dirt cheap and yes vidcards are very expensive. But if you truly calculate the cost I think pc can be a far greater deal. At least if you play the kind of games that get user modifications.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.