Slashdot Mirror
Digital Distribution Numbers Speak To Health of PC Game Industry
An anonymous reader writes with this quote from PC Authority:
"Over the years many voices have declared PC gaming dead. We have seen developers abandon the platform for consoles, citing piracy as the cause. Game stores have slowly relegated PC games from prime shelf position to one tucked away in the back corner — even Microsoft dumped AAA PC game developers from the company. It seems, though, that the demise of the PC as a games platform has been exaggerated, because until very recently sales data ignored digital distribution, with the latest data released by US company NPD revealing that 48% of PC unit sales in the US in 2009 were digital. That translates to 21.3 million games downloaded in the US. Interestingly, although 48% of games were sold online, it only worked out as 36% of the revenue. This highlights the fact that it isn't just convenience that has PC gamers shopping online; it is also that games are generally cheaper than in stores."
The demise of the PC has been called for for at least 20 years now. I remember similar headlines in the early nineties, claiming that home computer gaming industry would be beaten to pulp by japanese consoles like the Sega Genesis or the Super Famicom, mainly because it would be impossible to pirate a cartridge.
Nowadays, we have a massive user base connected to a cheap digital distribution network, the Internet, with no vendor lock on. You need the right technology and strong commitment to take advantage of such a powerful platform: that's what Valve did with Steam and, seven years later, it's still a great success.
Hack your mind out of its sandbox.
Most of my game catalogue is on Steam these days
I remember when I signed up for the Steam service and paid for my first game - it was Half-Life 2, naturally
At the time, I thought it vastly different to the conventional model (and psychological security) of buying your games on CD / DVD at retail. I actually paused before committing to the order.... weighing up the pros and cons of online only distribution when I could just wander down to the store instead
Fast forward to today and, given the choice, I'll elect to buy a game via Steam over any other method. No expanding collection of physical media, no waiting in queues at retail stores where pushy assistants are trying to sell me wares I don't want and - one of my favourite points - no laborious installation processes and/or the need for a disc to be present in the drive to play the game.
I haven't even touched on the low price aspect of Steam which, except for some AAA new releases, sees software available for quite a bit less than in retail stores. I don't think I'm alone in seeing single games or multi-title packs priced at what could be said to be impulse buy pricing.
One thing I would like to know is how the revenue from a purchase via Steam is divided up. Knowing how small a percentage goes to the developer / publisher from conventional sales, I wonder how platforms such as Steam fare by comparison.
Steam has done more than offer great prices, they have increased sales. There are several games that I never would have bought if I had to pay full price. I bought Bioshock 1 when it went on sale for $15, which led me to buy Bioshock 2, once it went on sale for $25. Actually, I was going to pay the full $50 and just got lucky that it went on sale. But I have a couple dozen games that I would not have paid $50 for, simply because Steam had a reasonable price on them. A few I have seldom played, but don't feel bad because they only cost $10.
I know I'm not the only one, so it is pretty reasonable to assume that the lower prices drastically increase sales.
Tequila: It's not just for breakfast anymore!
And it is so bloody convenient it is costing me a fortune....
When it has become faster and easier to buy it than pirate it... I'm sold!
Damnit steam and your abilty to entice me to pay for things I would have pirated 2-3 years ago :p