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."
Record stores are dead. Video rental stores other than a few major chains are dead. Why should game stores stick around? The only one near me is a tiny one next to a Cartridge World (ink, not ammo).
The A titles may still justify some shelf space at WalMart, but I don't see any remaining need for standalone game stores.
...I'm not buying.
The Digital download would have to really, really cheap (less than $10) to make it worthwhile for me to participate in this new economy. Why 10? Because oftentimes I buy a game on DVD for $20, play it, and then sell it used for $10-15, so my actual out-of-pocket cost for most games is less than $10 overall.
"I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
Digital downloads need to be loads cheaper because of the following reasons. They can't be: 1) Borrowed 2) Rented 3) Returned which means that if someone wants to buy a game, they have to get it straight from the publisher. Plus, our broadband infrastructure isn't really equipped to download GBs of data as the primary way of purchasing games. And then you have to factor in the cost of bandwidth that we'll probably pay for in one way or another and you begin to see that the real benefits are only for the publisher and not for consumers. I'll stick with discs, thank you very much!
Uggh. I've had some HORRIBLE experiences with digital distribution for games (EA Download Manager, Steam).
Give me a hard copy over digital any day.
"The difference between genius and stupidity is that genius has it's limits" - Albert Einstein
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.
Also, 90% of the games I buy through Steam are weekend deals, where you can find new releases for maybe 30% off. Impulse is the same, I just bought the new Red Faction game for $15.
Not a Twitter sockpuppet... but I wish I was.