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Forums - Sales - Digital Distribution to rule, in years to come

Cypher1980 on 04 March 2009

Digital distribution to rule 'in the next year or two'

Digital distribution is set for a huge rise in popularity in the next couple of years, and will force bricks-and-mortar retailers to change their business models or face extinction.

That's according to GamersGate CEO Theodore Bergquist, who told GamesIndustry.biz that the well-respected PC download platform saw 100 per cent growth last year, and expected up to 200 per cent growth this year.

"When I talk to all the publishers - both small, and really, really, big - digital distribution is on everyone's lips," he said. "Obviously some publishers are really ready to take these steps, while others aren't. Some still see digital distribution as something awkward, and they don't really know what to do with it, while some are really professional and they have it as a main strategy."

But, he says, once all of the publishers are on board, the industry is set for a "key change," and one that's possibly not so far away: "Whether it'll happen this year or next, I'm not sure - but I think it's that kind of time frame we're talking about."

In terms of the threat that the growth of digital distribution poses to bricks-and-mortar retails, Bergquist was clear: "I think digital distribution is absolutely the biggest threat they can ever have," he said.

"Look at the music industry, look at 2006 when iTunes went from not being in the top six of sellers - in the same year in December it was top three, and the following year number one."

However, it won't necessarily spell the end for those stores, unless they refuse to change their existing games-only business model.

"I think they'll get better on the hardware side, selling hardware together with games," he said. "But if it's games only, then no way - I can't see [them surviving]. I've been in e-commerce since 1996 and I haven't seen a goods business model better than this. It's so pure online in its nature - I can't really see how a traditional retailer can survive, unless they decide to go online themselves."

GamersGate, which began life as part of Paradox Interactive, now has over 1000 titles in its catalogue, specialising in independent developer products, but also now featuring key partners such as EA, with titles including Spore and Lord of the Rings: Online, and Microsoft Game Studio with Braid.

The full interview with Theodore Bergquist is available now.

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I dont necessarily agree but thought this interesting nonetheless



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Cypher1980 on 04 March 2009

Oh Sorry here is the link

http://www.gamesindustry.biz/articles/digital-distribution-to-rule-in-the-next-year-or-two



Zlejedi on 04 March 2009

Of course companies love digital distribution.
It solves so many of THEIR problems
- no rentals
- no used game market
- reduced piracy
- full control over YOUR software

And not related to above - but no competition beetween stores - you must buy the game at RRP.



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Oyvoyvoyv on 04 March 2009
Zlejedi said:
Of course companies love digital distribution.
It solves so many of THEIR problems
- no rentals
- no used game market
- reduced piracy
- full control over YOUR software

And not related to above - but no competition beetween stores - you must buy the game at RRP.

 

 Well, you're pretending like this isn't any good for consumers.

- Easier available.

- Lower initial prices

 

And Steam seems to drop prices pretty frequently to me. When digital distribution becomes really big, Steam will also get more competition, which will lead to another way of lowering the prices.

Also, doesn't Steam have a rental method? Or am I just messing up now....



http://www.vgchartz.com/games/userreviewdisp.php?id=261

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Zlejedi on 04 March 2009

Where have you seen lower initial price on steam that cannot be beat by one of e-shops for retail copy ?



PROUD MEMBER OF THE PSP RPG FAN CLUB

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NJ5 on 04 March 2009

It's obviously not going to happen from night to day, but the gradual transition to DD is already happening of course.

In the next generation we could well see most or all console games available for download as well as in retail shops. In the one after that we could even see DD ruling in many countries.

PS: I just wish they'd stop calling it Digital Distribution. Optical media like DVD and Blu-Ray is digital too. But I realize this is wishful thinking at this point, the name has already caught on.

 



My Mario Kart Wii friend code: 2707-1866-0957

Spankey on 04 March 2009

More third world counties (and countires without brilliant internet like Australia etc.) would need better access to the internet.
I hope the internet backbone's strong enough to handle this worldwide when it happens
I certainly won't be able to buy any games legally if this is the way of the future.
Oh well, goodbye gaming to most of the world I suppose. It's been fun.



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NJ5 on 04 March 2009
Spankey said:
More third world counties (and countires without brilliant internet like Australia etc.) would need better access to the internet.
I hope the internet backbone's strong enough to handle this worldwide when it happens
I certainly won't be able to buy any games legally if this is the way of the future.
Oh well, goodbye gaming to most of the world I suppose. It's been fun.

What do you mean by third world countries?

People who can afford consoles and TVs will likely be able to get at least a mobile broadband connection if/when DD becomes the only way to get games (which isn't anytime soon).

 



My Mario Kart Wii friend code: 2707-1866-0957

Spankey on 04 March 2009
NJ5 said:
Spankey said:
More third world counties (and countires without brilliant internet like Australia etc.) would need better access to the internet.
I hope the internet backbone's strong enough to handle this worldwide when it happens
I certainly won't be able to buy any games legally if this is the way of the future.
Oh well, goodbye gaming to most of the world I suppose. It's been fun.

What do you mean by third world countries?

People who can afford consoles will likely be able to get a mobile broadband connection if/when DD becomes the only way to get games (which isn't anytime soon).

 

 

Take it from me who lives in a third world country with max 115Kbs (yes, that's kilobits, Gentlemen) downloads and 2GB caps, it won't work unless they get a $2000 a month 15GB cap satelite dish hookup with 140KBs download speed max.

 

But yeah, this won't be coming soon...hopefully



Proud Sony Rear Admiral

NJ5 on 04 March 2009

@Spankey: I see you live in Tanzania. Check this out (HSDPA mobile networks exist over there):

http://www.3g.co.uk/PR/Jan2007/4143.htm
http://www.3g.co.uk/PR/August2006/3551.htm

Granted this network may not be very widespread yet, but surely they're improving it.



My Mario Kart Wii friend code: 2707-1866-0957