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How Much Longer Will Physical Game Distribution Survive?
GamesIndustry is running an interview with Theodore Bergquist, CEO of GamersGate, in which he forecasts the death of physical game distribution in favor of digital methods, perhaps in only a few years. He says, "Look at the music industry, look at 2006 when iTunes went from not being in the top six of sellers — in the same year in December it was top three, and the following year number one. I think digital distribution is absolutely the biggest threat [traditional retailers] can ever have." Rock, Paper, Shotgun spoke with Capcom's Christian Svensson, who insists that developing digital distribution is one of their top priorities, saying Capcom will already "probably do as much digital selling as retail in the current climate." How many of the games you acquire come on physical media these days? At what point will the ease of immediate downloads outweigh a manual and a box to stick on your shelf (if it doesn't already)?
You can see this already with PC gaming. Digital distributors like Steam have pretty much demolished the brick and mortar stores. My local GameStop barely has a PC game section anymore and it's not because the PC market is shrinking. In fact, it's growing.
Brick and mortar stores are dying and they know it -- for PC games anyway. It's like they are not even trying anymore. I am an independent video game developer, and I tried my best to let GameStop et al sell my company's game, but they do not even return calls. We have not even gotten an email back yet.
Meanwhile, our upcoming title is going to be sold in virtually every single online store -- some of them responded within a day of being contacted. Here's our list so far.
Brick and mortar stores are still clinging on for consoles releases. Retail stores pretty much are the only place to go when you want to buy the latest AAA titles (except Amazon, which is like digital distribution with very high latency).
... I get all of them in physical media. (http://steamunpowered.eu/ for the details)
OK, I've bought a few from GOG, but they still do it right.
I think it's freaking ridiculous that I can go to an on-line shop and get a game delivered to my door, for half the price I can get it from Steam.
Digital media. It's much cheaper, but we get to keep the profits, pass none of the savings to the customer, and you pay more for the "convenience".
Does it cost 20%-30% more when a EU resident downloads an Adobe product form their store than if a US resident does the same? I don't think so.
I don't think so either: Photoshop CS4 costs $699.00 in the US for direct download from Adobe, or EUR 887.12, the equivalent of $1115.00. That's considerably more than 30%. The VAT accounts for about EUR 110 of the difference, tho'.
ZDNet (God, I hate referring to ZDNet) did an article on the pricing imbalance last year. A 50% premium for products in Europe seems t'be standard for them.
Most other companies charge more for downloadable software in Europe than in the US, although the VAT generally accounts for most of the difference.
While I like the convenience of Steam, let's not forget that if Steam goes belly up, games bought there will become unplayable.
They announced that in that case the games would be unlocked.
That statement's been debunked several times, if VALVe goes belly up the administrators that take over are incredibly unlikely to allow anyone to flip a switch that would destroy the value of the company's assets. It's nice that they say it, but reality won't give them any control over it in that situation.
I like to purchase games through Steam to avoid having to hunt down the games in stores, as I've generally had bad luck when trying to get game-related items from stores here. I imagine it'd be similarly useful for people that would otherwise have to expend a large amount of transport effort to acquire the boxed version of the game. Some games, like Red Alert 3, even remove their boxed DRM in favour of the Steam version, which I tend to find less intrusive (it's pretty invisible to most internet-connected users).
As for the quota issue, in Australia the ISPs began implementing quota-free services on their own networks to counteract the large amount of bandwidth consumed doing things like gaming. Several even offer Steam content servers on their own networks as quota-free. Customers with Internode and Bigpond, for example, are able to acquire most (all?) Steam content quota free so bandwidth caps are irrelevant when downloading games; the only limiting factor is speed.
If American ISPs follow the Australian ones with the quota-free content servers and such we might find the number of people downloading games from Steam won't decrease when hard caps are implemented (since traffic on their own networks is essentially free they're likely to offer it).