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Forums - Gaming - Why a digital distribution console is bound to fail.

theshrike said:
Ok, I know I have said this before but here it goes again.

There will be a place for DD but I doubt we will ever see complete end to physical media with even the next few generations.

The main reason being is that not everyone is in a city and even fewer of those people have access the broadband needed for DD. Even right now, Comcast caps you at 100 gigs. In this case that would be about 2 and half Blu-ray disks. So basically you would download 2 HD movies or games and then worry about being cut off for the rest of the month.

It gets worse for people outside of cities. The only two options being 56k and Satellite. We all know how horrible 56k is so I will leave you to try and remember it.
Satellite is almost as bad, they have decent rates of download but their caps are ridiculous. Hughesnet cap is somwhere around 500 megs a day, and wildblue is around 12 gigs a month. I am curious what you would really be able to do with something like that as far as a distribution method.

A great deal has to change as far as infrastructure in order to go solely DD. It works for music because there is a smaller amount of data transfer, but there are still plenty of CD's out there in shops

Bingo. The intransigence of the major telecommunications companies, making broadband either too expensive, too slow, too limited in availability, or often enough all three. This will prevent a pure digital-distrubution console from being viable for a long time to come, at least 10 years i want to say, though i don't know what mystery technologies are coming around the corner

It works for PCs, because through a PC (or Mac, i use PC more broadly than it means) you can directly reach those customers who have the capability to buy your product, and all you have to do is put up the servers and develop a reliable client, much cheaper than building hardware and distributing it. But to release a device dedicated to this concept would be impractical



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Isn't this equivalent to saying that the ipod wouldn't sell because the retailers would lose out on all the cd sales?



Cheers



Repent or be destroyed

scottie said:

Wiinentdo, I mean purely downloadable games - no way to purchase from retail

 

 wait two console gens.

 

 relatedly,

newspapers are disappearing across the country, everyone's going digital.  free is better.

television viewership is declining year after year, everyone's going digital.  free is better. 

"DVD Sales Are Way Down, and High-Def Is Slow to the Rescue" -
http://forums.gametrailers.com/thread/511521?id=511521 (last post)

free is better.

"With more free TV shows online, more viewers decide to drop cable" -
http://www.kansascity.com/238/story/1033825.html

free is better.

 

......the music industry.......    

free is better.

 

 

 

Digital distribution is the here and now already; and it's huge, I heard Steam has twice the amount of users as XBoxLive.

Browser Games/ Cloud Computing (online storage and streaming of contenet, sans big downloads, or any downloads in some cases) is the here and now already, only, in the future it'll be much more used and more well-known. 

 

Expect the free services (in most cases, especially with exceptional content monetized) to pull ahead of the pay services...because

 

 free is better.

 

 

 

More popular games coming to a browser near you

http://news.cnet.com/8301-13846_3-10171176-62.html

Game reshaped to run in a browser, with help from broadband...

http://www.dslreports.com/shownews/Quake-Live-400MB-And-A-Dream-101063?nocomment=1

InstantAction makes browser a console

http://blogs.ft.com/techblog/2009/02/instantaction/

 

 

 

also check out,

The Great Disruption

http://seanmalstrom.wordpress.com/2009/01/07/the-great-disruption/

 

newspapers may be going, but you still have to pay for toliet paper - the essentials will still make money.

 

 

 

 meaning it only goes so far to say, but I like to take it as far as possible,

 


because the best things in life are free;

FREE IS BETTER!



aderoche said:

Isn't this equivalent to saying that the ipod wouldn't sell because the retailers would lose out on all the cd sales?

 

That's entirely different.

 

Apple already had a well established way to distribute their hardware, that was how their computers were sold. It was only since Ipods became popular that stores have started stocking Ipods and Imacs.

 

The Ipod was never a loss leader - it was always sold at a profit on the hardware



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^ I feel the same way.

I think also Digital Distribution from an industry perspective is kinda of like the big 3 shooting themselves in the foot.

From what I understand (and I could be wrong) retailers hardley make any money off of Hardware sales, Software is where it counts to them. For NINtendo sony and Microsoft, they want to push their systems. Yeah they can distribute them through online arrangement/vendors but a lot of the advertising and showcase aspect of "reeling in customers" are a lot more effective through storefront. SO essentially the want retailers (brick and mortar style) there to push the hardware, and the retailers only want to push the hardware in hopes that those customers will also buy software. If you don't give retailers an incentive to continue selling software than they won't carry the hardware.
Does this make sense? Any comments?



"Let justice be done though the heavens fall." - Jim Garrison

"Ask not your horse, if ye should ride into battle" - myself

good point but i think it is wrong. People will always find a way to get ther favorite console even if it means buying it online or whatever. But until a huge increase in broadband speeds and more global penetration a DD system will surely fail



Long Live SHIO!

wow ... retailers dont like digital distribution huh... this must be why i cant find ipods anywhere that closed source itunes and apple hoarding all the revenues from it forcing 3rd parities to pay for the privilege to sell apple stuff... and the cards for downloading songs cant find those either.

retailers will adapt and modify the current system. also there will always be a demand no matter how small for physical media that will be met though im betting the future will be with jumpdrives/ cf/ or sd cards.


scottie, you do know retailers of apple goods make next to nothing off the hardware sales right? they have terrible margins for 3rd parties (not apple margins they make a killing normally around 25%) . the reason stores carry them is to get them in there to buy other goods, head phones external HDs warranty service.

the same will happen to consoles the hardware accessories will be where the money is. and thats really where it is now not in games, games dont make them much money nor do systems. but those controllers you buy, adn those batteries, the new cables... and the warranty and what ever else. retailers wont care.... (well gamestop might but i hate them so they can burn)



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One_touch_KO said:

How come retailers would not like it?

If they can make a profit on it, of course they will sell it.

To some degree, yes, but retailers don't make much of a profit on consoles: the margins are extremely thin. Games are far more profitable, both in terms of margin and volume (except for PSP games, where the hardware outsells the software, but even there the games are still more profitable in terms of margin).

Remove games from the equation, and you've taken away retailers' biggest source of profits. Most of the specialized game stores are unlikely to be able to sustain themselves on hardware and accessory sales alone, and they know this. Go to download-only and you kill an entire segment of the retail market.

Not that game makers particularly care, I think. They'll still be able to sell their consoles through big-box retailers and more generalized toy stores and such, and in their eyes the death of the specialized game store is a small price to pay for achieving the real goal of downloadable games: killing the used market dead.



Complexity is not depth. Machismo is not maturity. Obsession is not dedication. Tedium is not challenge. Support gaming: support the Wii.

Be the ultimate ninja! Play Billy Vs. SNAKEMAN today! Poisson Village welcomes new players.

What do I hate about modern gaming? I hate tedium replacing challenge, complexity replacing depth, and domination replacing entertainment. I hate the outsourcing of mechanics to physics textbooks, art direction to photocopiers, and story to cheap Hollywood screenwriters. I hate the confusion of obsession with dedication, style with substance, new with gimmicky, old with obsolete, new with evolutionary, and old with time-tested.
There is much to hate about modern gaming. That is why I support the Wii.

This is definitely true for home consoles, but what about portable systems whose games are significantly smaller in size.

I can conceivably see Sony releasing a purely DD PSP2 in a year or two.