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."
Who would have thought $99 wasn't due to the cost of packaging? The eyes, how they roll!
Disagree != mod troll.
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.
Software box companies continue to dislike digital distribution, oil companies lobby away from nuclear power, and the middle east is still a warzone.
digital download. permanent. always there. nothing less.
gamersgate.com works great. i have a hoard of games there. no client, no strings attached, you download, install, play. then you may delete the game. if you later on want to play it again, you just download it again. no client, no strings attached, dl, install, play. rinse and repeat. all games permanently stay in your account as accessible.
also very cheap. they make huge sales. apparently online distributors can afford to sell prime time titles from $3 (with loyalty discount - depends on member status, it hits in between $3-10 for prime games).
what this has over steam is, it doesnt need a client, hence no mods etc will have issues, and difference with direct2drive is, gamersgate is much cheaper.
as you see, i counted 3 major online digital distributors... didnt even need to mention countless smaller ones. so, digital downloads can be said to come at last.
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Marty McFly: [showing the two boys how to play the shoot 'em up video game] I'll show you, kid. I'm a crack shot at this.
[shoots a perfect score with the electronic gun]
Video Game Boy #1: You mean you have to use your hands?
Video Game Boy #2: That's like a baby's toy!
So could anyone give the adjusted graph of market distribution, consoles vs PC?
45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
Despite the curve involved to maintain, it's highly customizable, and handles a multitude of tasks and games. You can run emulators for different platforms, network PC's together (without needing an online gaming subscription), and hack someone's port... until quantum computers come out, that is.
Old games can still be played on today's pc's (starcraft comes to mind). If you bought an older game for the previous generations of gaming consoles, it will not probably play on the latest generation of consoles.
I still buy pc games that I don't have time to play today in the expectation that I will be able to play them in the future when I have more time. That said, I am buying almost exclusively stand-alone games that don't need to connect to a server with thousands of other players.
Borderlands:
Amazon.com from a shifty third-party seller - $28 ( before shipping )
Steam - $30
Onlive, which charges you $5 per month AND eats your games when you quit, $40, if I recall correctly.
Mind=Blown
Who'da thunked it - if people can get a game cheaper and quicker without leaving their house then they will! Next thing you know they'll be telling us that people go shopping in sales...
I know I could be wrong, but I think there's almost no chance that the PC will ever die as a gaming platform. The reason it won't die is the console + TV and PC + monitor distinction will become less defined over the years. They're not that different conceptually as it is.
There was another story on Slashdot recently about centralizing graphics processing into a single graphics server per household, with the output from that server being displayed on client devices. Once you reach that point, consoles and PCs, monitors and TVs, all become the same devices.
World of Warcraft > all console games combined.
For in politics, as in religion, it is equally absurd to aim at making proselytes by fire and sword. - Publius
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.
Does anyone have reasonably current figures for Valve's revenue and income? A 2005 Forbes story claimed that Valve had an income of 70 million with an operating profit of 55 million. Other sources say that Gabe never accepted venture capital funding and bought out the company's cofounder... Given the relatively few number of employees, Gabe must be loaded.
is the industry itself.
All the reasons that it's "dying" are reasons the big players make. The pc is open, anyone can make a game, and don't need publishers. Publishers hate this. Much how the RIAA hates P2P and the internet in general because Artists can just bypass their robber baron horseshit.
1, Piracy. aka, "we dont control the hardware and software, and cannot fully exploit the people who buy our crap"
2, Forced obsolescence. Many big companies are trying to make PC games a second rate citizen, Microsoft gives bigger perks to those who develop games using the "games for windows" moniker, which essentially makes them develop it for the 360 first. The big development houses are pushing for consoles to make console makers happy.
3, see number one
I don't necessarily agree with the comment about digital distribution always being cheaper than stores - for example, because I don't usually hurry to buy new games, I picked up Fallout 3 about 6 months after release for £12.50 new (=$18.00) & then the Game Of The Year Edition (with all 5 DLCs) for £19.99 new (=$30.00). That was from my local Game game store here in the UK, a national chain, and they constantly have similar pricing offers on.
However, especially as I've noticed how the PC games shelf space has shrunk in Game stores over the past couple of years (in favour of console games), this is where digital distribution comes into its own - namely for the range of stuff that's available on-line but not in stores.
I don't buy that many new games but I've bought from Steam & GOG.com - in both cases it's good to have the ability to get hold of a few older classics again.
I don't think PC gaming is dying as such but I do think the whole PC market with respect to games is changing dramatically for the following reasons:
1. PC and graphics hardware development is slowing down for desktop gaming PCs & focus moving to lower-powered netbooks & portable devices. Presumably people still want to play games on those devices which means smaller & less complicated games - one reason for the success of selling older titles online.
2. Most Windows users still seem happy enough with Windows XP even though I have no reason to doubt Windows 7 may be a better OS. This brings into question as to just how many people have the capability to run (or even care about running) DirectX 11 and therefore how much development games companies are prepared to do on it - when all said and done, this list of DirectX 11 games is very small.
3. I don't personally care about "mass migrations to Linux", I use it because it's there and because it does what I need an OS to do. But whilst Windows 7 may have fared better than Vista, it's still not the raging success for Microsoft that XP was & Linux has matured greatly since XP was released to the point where there's a far greater chance of running older Windows games in WINE on Linux than on Windows 7 or XP. Again, this fact alone must influence older game sales & the forums on GOG.com have lots of threads discussing whether or not certain GOG-released titles will run under WINE. (I don't go on the Steam forums much but the fact that there's soon to be a Steam client for Linux says a lot to me).
4. Modern games are huge development projects with huge up-front costs. Developing games for a fixed console platform *MUST* be much easier than developing for PCs with their plethora of different hardware. Plus games companies make their money from making sequels of established titles, it's the younger, less cynical gamers that rush to buy (or get their parents to buy) those titles & the youngsters like their consoles. All of this leads to the conclusion that there will be a continued slowdown in new PC game releases.
5. MMORPGs & online gaming - if people are spending more money on monthly subscription games then they're spending less on boxed games, especially during an economic slowdown.
As a PC gamer, what I'm really looking forward to is a lot more resolution of petty licensing squabbles of older games so that more of them get released, maybe even with some commitment to allow those games to be updated to run on more modern Windows OSes or even natively on Linux. It make sense that if the games companies are no longer getting as much revenue from new PC games than they used to, then they should look at opening up the revenue streams from re-selling older games.
Gentoo Linux - another day, another USE flag.
sony and co (all the large game corps) have all got together and are simply trying to destroy the second hand market which is why they are trying to force us to only accept digital distribution laden with DRM like steam where all your purchases are not allowed to be resold.
they simply want to force everyone to have to purchase new which is why they have continually tried to get us to stop using the PC and move onto the kiddie toy consoles.
but now they are not happy with the consoles and are trying to block second hand games being traded on them.
i hate scum bag anti consumer corporations.
The Truth Is Out There:
I'm a fan of Stardock's Galactic Civilizations II and the expansions, all of which I own on CD.
Not long after the original game was released about 5 years ago, Stardock changed the license key format (I think due to piracy issues) so that the key printed on the instruction manual no longer worked. However, they informed everyone about this & getting a new key issued was straightforward & quick.
I hadn't played the game for about two years & had rebuilt my PC since I'd last played it but decided to dig it out again recently. When I installed the game & connected to Stardock via their Impulse application (think of it as a simpler version of Steam), I remembered the old key didn't work, had the lost the new key & realised that the registered email address Stardock had for me was an ISP-based one from an ISP I no longer use or have access to.
I emailed Stardock, asking them to either send the key to my new email address or to update my records to that I could send myself the key from Impulse. This was on a Friday evening and I had been looking forward to playing GC II over the weekend.
To give Stardock credit, they were very helpful and by the following Tuesday they had sorted it all out - but I did need to send out about three emails to them and they appeared to have nobody on duty over the weekend, which is when I had really fancied having the gaming session.
So, yes, this is one specific reason why too much reliance on the game creator servers can be a problem for legitimate purchasers.
Gentoo Linux - another day, another USE flag.
It is always the same whining. "piracy is killing us", "the VHS is killing us", "bootlegs are killing us" - no matter if it's games, movies, music, the main expertise of the content industry has for at least 40 years been whining.
Unfortunately, they're not laughed out the door as they deserve to.
Assorted stuff I do sometimes: Lemuria.org
And let's not forget about the subscription based mmo market, as well as the mostly korean freetoplay mmo market, both of these markets being mostly pirate proof, and coincidentally massive.
According to Stardock's CEO, these numbers are wrong. Going by raw sales numbers, he says the digital number is actually closer to 25%.
Why the discrepency? Well, he has actual numbers for retail and Impulse (which he happens to own). He doesn't have numbers for Steam. Of course, neither does NPD. Their digital numbers are based on an online survey. These are not real sales numbers by any measure of the word, they're the sales equivalent of a biased online public opinion poll.
If I stood in the electronics aisle of Walmart and did a survey there, I'd find shockingly different numbers too. Unfortunately since we don't have accurate sales data for anybody, we're left with this kind of guess work.
-- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
What define the consoles now, is that the console games hare created for people playing in a coach, with a pad on the hand. this sets limits and expectations. Then, after that, you have the effects of the owner of the console, setting rules, and maybe his idea of quality.
The PC is defined by the high and medium graphic cards, memory availability, mouse and keyboard. And people use it on a desktop.
This may change on the future,but is like that today.
-Woof woof woof!
I don't think any publisher ever hated the idea of digital distribution (if only it could be made pirate-proof enough for their taste.)
See, ever since the 90's or so, most of the profit has been made by the retailers. Those make money both from the few games that are a success, and from the complete flops. Even games like Daikatana or Aiken's Artefact (which got great reviews, but IIRC sold a total of 800 copies and nobody knowns why) actually made a bunch of retailers a bunch of money.
See, some of us learned a 17'th century version of capitalism (which is also the version in the game called Capitalism) where the merchant buys a barrel of wine in France for price X and tries to sell it in England for 10% more. (Or 50% or whatever.) And if it doesn't work, hey, the producer got his money anyway. Most of retail in today's post-scarcity economy doesn't work that way. Producing stuff is easy, selling it is hard, and basically as a producer you pay the retailers for shelf space to even carry your product at all. If you made an Aiken's Artefact and sold 800 copies total, congrats, you still pay all those retailers to have it on the shelves.
Worse yet, basically the retailers know how important they are and often get to directly or indirectly got to set the rules for you.
The most trivial example is the current brouhaha over ESRB ratings, which exists because of one single retailer: Wal-Mart. Wal-Mart doesn't carry Adults Only game, 'cause god forbid someone may think that means porn, and that would ruin their BS corporate image. Dumbly enough it's also the biggest retailer. Which left the industry in the pickle of simultaneously arguing (A) not all games are for kids, so fuck off, we can make a game with tits and gutting people like sardines because it's for adults, (B) but this particular set of tits and gutted people is good for 17 years old (or sometimes even 13) because otherwise Wal-Mart won't carry it and we'd, like, not make as much money. (And of course making money overrides and moral considerations. What are you, some kinda commie?)
But, heck, even the E3 exists only because at some point the industry figured out they need a way to woo the retailers. That's right. It never was meant to be a place where nerds get their photos taken with booth-babes, except as a further way to show the retailers "look how many people are interested in our next game."
But generally, you have an industry which for a long while has been squeezed by the balls by the retailers. It had to keep brown-nosing them and paying them for the privilege.
I believe that most publishers would have sold their soul to the devil to get out of that, not just tried digital distribution.
Of course, it also had to be enough of a market share, and give some reassurance that it won't get pirated right off your own servers. Piracy, now _that's_ a bigger scare than the retailers.
A polar bear is a cartesian bear after a coordinate transform.
PC gaming was never dying/dead in the first place, these are all non-stories.
"we've got trenchcoats and bad attitudes" - John Constantine, HellBlazer
I highly doubt those in the GPU business would invest so much time, effort, and money into something that is "bound to fail". Sure, the PC isn't their only market, but it's a damn big one.
>1. Computers don't go obsolete like consoles do
No, they obsolete faster. A 5 year old PC is not going to run all the new games. A 5 year old console does.
>2. A keyboard & mouse > controller
There are other games besides FPS (for which a controller is better). Racing games, for example.
All of those consoles were thought to be the end of the PC Gaming scene of which i've been a part of since the Zork days. PC gaming was and still is the innovator of gaming. Here is my recollection of the PC game wars. When the PC moved to better grahpical games on CGA and EVGA, the NES was already at its max limits. So when the SNES came out shortly after EVGA games in the early 90's, the PC gaming industry was declared dead. As PC's regained market share, the SONY playstation came out (1995?) and again the death of the PC gaming was declared. PC's fought back with 3dFX, the Voodoo card. I'll never forget seeing tomb raider with that beautiful 3d glide version of the game and just thinking "how could this ever be topped"? Then in the late 90's when PC gaming was at its near peak, the best PC game ever to come to PC's got bought by the biggest PC backing company. We thought PC's had won the war when Microsoft bought Bungie. Who would have thought that it was nearly the nail in the coffin. Between Xbox and PS2, PC gamers had a new system not only to look at but for the first time, but truly hack. Then came NVIDIA. The PC gamer's savior. Producing the RIVA TNT, PC gamers finally were revived. This led to 10 years of very expensive graphic cards where PC gamers would briefly lose their edge while a new console like the PS3 or 360 took the lead. The fight still goes on, although the PC is now clearly in the drivers seat, behind ridiculous video cards like Geforce 400 series. PC gaming is 7 or 8 generations ahead of the best consoles out there. But i'll admit, i play now 50% of my games on the PS3/360. But when i want to be fully immersed and get lost, nothing beats playing a game on a high end gaming rig with a supersharp large monitor 2 feet from your eyes.
> There are other games besides FPS (for which a controller is better). Racing games, for example.
RTS & Puzzle Games are better using a Keyboard/Mouse, basically any game where you have to click on an area on the screen a KB/M combo is superior. the only games that gamepads "might" be better are arcade games, but even then a keyboard mouse combo is just as effective
Thanks to file sharing, I purchase more CDs
Thanks to the RIAA, I buy them used...
That depends on how you classify "all the new games."
The PS2 is still being sold. I could buy it and play "all the new [PS2] games," but that's like saying I can drink all the water in a desert... there may be some there, but extremely little. Prior to this generation, a console's lifetime was 5-6 years before it was considered obsolete and its manufacturer released a new system.
New consoles are generally considered new platforms. They may play games for older systems, but it's not guaranteed (Sony, this means you). Windows, on the other hand, will play a good deal of older games, even if they were released 15 years ago. This is slowly changing; 64-bit Windows won't run 16-bit Windows programs. Even then, I can set up VMWare with an older Windows installation and continue playing older games... something you can't do on consoles.
GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
At the very least, racing games, flightsims and platformers are not something you want mouse+keyboard for. The people who buy controllers for PC games surely don't do that because they like taking a step backwards.
out of the approx 15 games i have on gg now, only 2 has drm. and they are simple securom and shit. nothing that anyone cant handle.
Read radical news here
That totally reminds me of this one time that I wanted to drive my car, but then I realized that I had left my keys in a pair of pants I'd thrown out. I had also lost my car registration and my drivers license.
No, this gives one specific reason for why you should keep backups of important data.
I play racing games on my PC, the keyboard works just fine... its as good as a gamepad on a console
Thanks to file sharing, I purchase more CDs
Thanks to the RIAA, I buy them used...
Bit of a coincidence that the website (The Customer Is) Not Always Right posted this humorous excerpt today: Not Always Right | Funny & Stupid Customer Quotes Not Down Low On The Download
48% of the games might represent only 36% of the revenue, but what percent of the profit are they?
Without the expenses of duplication, packaging, shipping, warehousing, distributor's cut, retailer's cut, and in-store marketing costs (to say nothing of returns on damaged and unpurchased stock) I imaging that digital distribution is much more profitable for the developers and publishers than brick and mortar even if it represents less gross revenue.
Actually I'm a PC game developer...
Until DRM made it so a boxed copy of a game wouldn't 'activate' on any computer but mine (I'm lookin' at you, Chronicles of Riddick). So much for right of first sale.
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Does this you can buy games that are analog? Analog computers are cool, but I don't know of any in mass production.
If you must moderate, please moderate as irrelevent, not something bad, because I'm sure someone will find this interest
Beautiful artwork laced manuals. Fun maps (sometimes even made of cloth). The occasional action figure. Other entertaining inserts. The disks themselves which are nice to look at. It's all these reasons which would prevent me from ever buying online digital downloads only. It just makes no sense to me to do so even if I'm saving five or so bucks and, honestly, I don't think I've seen such an advantage for any title. So, I will always be a hard copy game buyer and hope such things never go away.
But my 1 yr old PC can play 10 yr old games. In fact I just started replaying Starcraft this weekend.
Also gaming PC's dont deteriorate that fast, depending on the kind of games you play. My housemates 5 yr old PC will play Starcraft 2 (AMD 64 X2, 2 GB RAM, Geforce 7300).
Both inferior to the steering wheel controller. Also for flight sims, mouse is crap but I have a $30 joystick to play a few flying games (X3, ARMA) which is far superior to both the mouse and control pad and I've once used a HOTAS setup but cant justify the outlay for a few games.
Calling someone a "hater" only means you can not rationally rebut their argument.