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Game Retailers Facing Digital Distribution Transition

This editorial at Eurogamer examines how the games industry is dealing with the growth of digital distribution — a transition they're handling better than other entertainment industries, but not without a few stumbling blocks of their own. "The examples from other industries undergoing this transition are not promising, since they tend largely to focus on metaphors involving creeks and a distinct lack of paddles. Bricks-and-mortar retailers of music and movies have largely sat back and grumbled while their businesses were hijacked, first by online retailers of physical product and then by digital distribution services. ... Specialist games retailers who follow that model face little more than a decline into insolvency in their medium-term futures. Worse again, they face competing with far bigger companies to retain their slice of an already shrinking pie — as boxed game retail sales fall off in favor of digital distribution, supermarket chains are increasingly seeing high profile games as a worthwhile loss-leaders."

9 of 155 comments (clear)

  1. Re:And the hardware? by Bieeanda · · Score: 0, Troll

    Then the buyer goes to Wal-Mart, Best Buy, or another big box store that can afford to have computer and console games and accessories as a sideline, instead of a specialty shop that may or may not have what you want in stock. If the big box doesn't have it, chances are the little boutique won't if you didn't pre-order it either.

  2. Re:And the hardware? by maxume · · Score: 0, Troll

    You seriously consider true ownership a value?

    I love renting stuff when I can get what I need for less that it would cost to own.

    --
    Nerd rage is the funniest rage.
  3. Re:NO!NO!NO! by sopssa · · Score: 0, Troll

    Of course you conveniently left the experiences off your post. Steam has been working great for years, and I've pretty much started buying everything from it because it's so convenient.

  4. Re:And the hardware? by lukas84 · · Score: 1, Troll

    I can get next-day shipping from several big online shops here. They have plenty of stock, too.

    Whenever i go to a brick and mortar store, they usually sell outdated stuff (e.G. i needed a new graphics card, and was looking for a GT210 or something like that. the brick and mortar star only sold 8xxx Nvidia cards). I ordered it online, even though i actually was in three stores - none of them had any GT210.

  5. Re:And the hardware? by Zey · · Score: 0, Troll
    Opportunist (166417) wrote:

    And then I want to deal with a store that will give me immediately a replacement instead of sending it in and waiting 3-4 weeks 'til they get a replacement from their distributor.

    Dunno about the US, but, in Australia the big stores are the most likely to have enough rolling stock on hand that they're able to pull a replacement item from stock — and then they'll chase up the warranty replacement paperwork themselves.

    Being a big client with large recurring orders, the manufacturers and the big company have a business relationship to maintain so they don't stuff each other around. So they're happy, and they keep the customer happy. They see it as part of customer service.

  6. Re:NO!NO!NO! by sopssa · · Score: 0, Troll

    So you're saying all the people living on rent should be living on street instead?

  7. Re:And the hardware? by Idolminds · · Score: 0, Troll

    They would love to offer the games for cheap on Steam, but the game publishers don't want to piss off the B&M stores.

    I'm sure they are crying their eyes out that they *have* to charge people more money for something that nets them higher profit margins.

  8. Re:And the hardware? by Tukz · · Score: 0, Troll

    You didn't think of the possibility that they'd sell far more, if they lowered the prices?
    Most of my friends only buy from Steam doing weekend sales, same as poster above you it seems.

    If all digital sales on steam, were lowered by say, 30%, I think you'd see an increased sale.
    Not only in numbers, but also net gain.

    --
    - Don't do what I do, it's probably not healthy nor safe. -
  9. Re:And the hardware? by KDR_11k · · Score: 0, Troll

    A specialized store will probably have it, or at the very least know immediately where to get it within 2 days. A big store using computers as a sideline, additional income will only offer you what's mainstream and most of the time won't bother with special orders at all.

    Maybe for computer components but not for videogame consoles. The specialized stores (GameStop) have their local stock and that's it, if they run out you'll have to wait for the next regular shipment and if there won't be one, hey, we've got some used games you might want instead?

    --
    Justice is the sheep getting arrested while an impartial judge declares the vote void.