On Digital Distribution For Games - Does It Work?

Thanks to The Hollywood Reporter for its article discussing whether digital distribution can really work for videogames. The piece focuses on NP Cube, developers of PC MMO Dark And Light, who are based on the tiny Reunion Island, east of Madagascar, and intend to distribute free versions via "a peer-to-peer site", before charging a monthly fee later. Co-founder Laurent Paret argues of online distribution: "It's so much more cost-effective than signing a contract with a publisher... One peer-to-peer company wants to charge us $300 a month to distribute 'Dark And Light.' I have no idea how they can charge so little and I'm not asking." However, Mark Jacobs of Mythic Entertainment disagrees with the approach, suggesting: "I know they think they can make up some of their development costs earlier if they distribute online [thus getting higher profit margins]... But they're sacrificing long-term profits for short-term gains."