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)?

Comments

As long as they keep the packaging shiny

[DrJokepu]

I mean, seriously, who doesn't like those shiny boxes with the manual, maps and stuff like that? And having the original packaging even many years later? We're talking about some serious bragging rights here.

Re:I always buy boxed games

[Nursie]

I also like physical objects, generally for music. Whilst I have downloaded a couple of games on Xbox and PS3 and I don't have the same fear of something going wrong, there is a huge downside.

I can't lend it to a friend.
I can't sell it on or even give it away when I'm done with it.

This sucks.
I don't mind the suckage on low-value items like Flower or Noby Noby Boy, or Xbox Live Arcade bits and pieces, but on full games?

No thanks.

Never!

[YuppieScum]

Simply stated, if companies stop selling their games on physical media, then I shall stop buying their games.

I've been fucked over by DRM-laden downloads on the 360, thanks very much. Every time mine goes back for repair, none of my paid-for-DLC works on the new box I get back, and I have to get into an hour-long argument with tele-bozos to sort it out. I have no interest in extending that process to every game I own.

It's all a question of media

[gravos]

If BluRay becomes cheap enough, then of course games from all platforms will be distributed that way. Who even on 3Mbit broadband wants to download 20GB games? Not me, that's for sure. It's all a question of media and the size of the game vs the size of people's broadband pipes.

And likewise it will be with the next media format, and the next, and the next. You can't compare MP3s and games because songs have a fixed size. Games do not.

Re:It's all a question of media

[twistedsymphony]

I completely agree, another thing to consider is the market he's comparing it to. digitally distributed media took off in the Music world because most people wanted to take their music with them wherever they went. (portables aside) I don't know how much benefit there is to keeping your game collection in your pocket, actually digital distribution works out AGAINST convenience in some regards in that if I download the latest Street Fighter, then I can't take the game with me to my friends house to play it there, at least with an Ipod it's easy enough to bring my player along with my collection, but hauling a PS3, 360 or desktop PC isn't close convenient.

Re:It's all a question of media

[jitterman]

To play devil's advocate, I've used Steam, etc., for my PC, and I still prefer physical media.

First obviously, no download waiting - if the DRM isn't as asinine as Spore's was, then when my machine needs to be rebuilt I can quickly put all of my games back on rather than wait forever.

Second (and I have done this) - I can sell my games LEGALLY to friends when I'm done with them and vice-versa. They get a $50 game for $10-$20, and I get a rebate of sorts. Can't do that with downloaded software (well, I suppose you could copy it to a DVD then find a crack of some type, but hell, your buds can do that, too). Kind of like the e-book argument.

Finally, there's the subjective (OP mentioned this, to be fair) - I *like* having the physical media and the packaging. Hell, Fallout 3 actually even included a REAL, printed manual! Woohoo!

To be sure, there are many benefits to download distribution, but it's nice to have options and I would hate to see the total demise of packaged games.

They need to sort out the pricing.

[Dr_Barnowl]

I bought Dawn of War II from the supermarket ; because it was a lot cheaper than getting it on Steam - even if it is natively a Steam game.

Why, in this day and age, are physical boxed copies retailing for less than the digital variant? In this particular case, there is literally no difference between the end results - both methods have the game, installed in my Steam folder, registered to my Steam account. Neither has any resale value. I even had to wait to download an update.

I would rather have downloaded it all, it would have used less materials, and perhaps given more money to the developer (in theory). But for less money, I got more value - I got a disk with a "preload" on it. So physical distribution isn't going away until the download costs less than a retail boxed copy, or until they stop offering boxed copies altogether, and the latter is probably the route that they will want to take - no competition, no discounting.