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Forums - Gaming - Malstrom: "digital distribution (only, not as an alternative) will..

Ail said:
Why do people keep quoting the fool every week.
If you like Maelstrom that much just post on his site...

You can't post on his site.  The only way to discuss what he says is to quote him and then discuss it on another site such as this one.

 

Also, why do you care if people quote him?  If you don't like him, then don't go into the Malstrom threads.  I personally do not agree with everything he says, but he does discuss sales and gaming in general and this is a videogame sales site.  Malstrom has a different take on the situation than most people, and I frankly believe he is right more often than he is wrong.  I particularly enjoy the 'death to the gaming industry' posts-- when he's right, he's right.

 

As for the PSPGo-- gotta agree with him and Reggie, what's the point?  Can't I already download games and stuff to my PSP?  I believe a better option would be to give the customer choices-- they can download the software or buy the cartridge/disk and copy the data over.   



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Scoobes said:
Well MP3s, H264/Xvid and eReaders have yet to destroy CDs, DVDs/Blu-Rays and books. I think physical forms will always exist even if its with diminished sales.

Well, how much of a niche do they have to be driven into before physical media are considered 'destroyed?' I'm sure you're right that there will always be some market for physical media, after all some albums are still getting pressed onto LPs. But outside of that tiny LP niche, iTunes has already become the single largest music retailer in the US with 25% of the market. DD is roughly 1/3 of the US music market, so how long before downloading songs is mainstream and CDs are the new LP?

Digital distribution is all about finding the right model to incentivize the consumer. There are lots of advantages to be gained by both the consumer and the supplier, and also a lot of costs to be saved. Digital distributors have to be careful that they don't outweigh the advantages with new disadvantages like DRM restrictions, and that they deal the consumer into the cost savings rather than just trying to line their own pockets. For every successful model, there are ten failed DD models.

All the major hardware manufacturers already have successful digital distribution models. They just need to be able to mainstream the model and bring in full retail games. The two big problems are going to be getting storage cheap enough and avoiding breaking the model through restrictions or greed.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

The problem I see with digital distribution is that the value I see in most downloadable content and the price companies are charging do not match ...

I'm sure over the next decade companies will find a price level that most people find appropriate, but the fumbling around charging people $5 for cosmetic horse armour only prevents a large portion of their potential customer base from buying any content.



While I think that Malestrom has been a bit full of himself recently, I think he may be on to something here.

Digital Distribution as the only medium is potentially dangerous to the consumer -- just like any monopoly is potentially dangerous.

Mike from Morgantown



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

Wii Friend Code: 1624 6601 1126 1492

NNID: Mike_INTV

That is a very slick way of defining the PSP Go as it was made for Sony’s interest and not the consumers’ interest.

When PSP Go is sent to die, which it will die, people are going to be crying and saying, “But… but… this is going to delay digital distribution! If Sony only didn’t have such a high price…”

Right here he seems to be missing a key point. Game companies want DD to take over so that they can make more revenue per game sold, not per device. They plan to cut out retailers so they get a higher % of your $59.99.

When it comes to the hardware itself, they still follow the razor/razorblade model. Sony's goal isn't to make money on hardware. They just want to sell the hardware so they can start making money on games. The issue is that retailers, who are suddenly left out in the cold when it comes to games, demand a much higher margin or else they'll refuse to sell the product. Hence the PSP Go's absurdly high markup. It's either appease retailers or not sell it at all.

Retailers aren't going to carry a product unless they make a decent profit on that product. Even then, some still refuse to carry devices like the PSP Go despite a higher mark-up simply because they fear DD in general, and will do anything to prevent it from gaining ground.



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I disagree that the drive towards digital distribution is a sign that the industry is hurting. Businesses will always try to monetize certain things if they think they can get away with it, though i agree that a DD-only platform (like PSP Go), is a bad idea for the reasons he stated.



Monster Hunter: pissing me off since 2010.

famousringo said:
Scoobes said:
Well MP3s, H264/Xvid and eReaders have yet to destroy CDs, DVDs/Blu-Rays and books. I think physical forms will always exist even if its with diminished sales.

Well, how much of a niche do they have to be driven into before physical media are considered 'destroyed?' I'm sure you're right that there will always be some market for physical media, after all some albums are still getting pressed onto LPs. But outside of that tiny LP niche, iTunes has already become the single largest music retailer in the US with 25% of the market. DD is roughly 1/3 of the US music market, so how long before downloading songs is mainstream and CDs are the new LP?

Digital distribution is all about finding the right model to incentivize the consumer. There are lots of advantages to be gained by both the consumer and the supplier, and also a lot of costs to be saved. Digital distributors have to be careful that they don't outweigh the advantages with new disadvantages like DRM restrictions, and that they deal the consumer into the cost savings rather than just trying to line their own pockets. For every successful model, there are ten failed DD models.

All the major hardware manufacturers already have successful digital distribution models. They just need to be able to mainstream the model and bring in full retail games. The two big problems are going to be getting storage cheap enough and avoiding breaking the model through restrictions or greed.

And the 3rd problem is that internet connection speeds, whilst fast, have yet to catch up in every region with the size of games. The world of DD is still a way off for the games industry. For music, and possibly films its nearing mainstream status, but games will still take a little longer thanks to the problems outlined. When DD for music reaches >50% we'll know that physical media is on its way "out", but that'l still take some time, and even longer for the film and games industries.



I hate how he uses the term "game industry" with citation quotes all the time. I really really don't like Malmstrom, he seems so angry and cynical.



HappySqurriel said:

The problem I see with digital distribution is that the value I see in most downloadable content and the price companies are charging do not match ...

I'm sure over the next decade companies will find a price level that most people find appropriate, but the fumbling around charging people $5 for cosmetic horse armour only prevents a large portion of their potential customer base from buying any content.

Your value doesn't matter.

It's just like DLC.  I may think a particular set of DLC is overpriced or something that should have come with the game itself but if thousands of people are lining up to buy it then my opinion really doesn't matter because the larger market has spoken.



JGarret said:

...destroy game companies".

His newest article, found here: http://seanmalstrom.wordpress.com/

“What’s in it for me?” That is a very slick way of defining the PSP Go as it was made for Sony’s interest and not the consumers’ interest.

When PSP Go is sent to die, which it will die, people are going to be crying and saying, “But… but… this is going to delay digital distribution! If Sony only didn’t have such a high price…”

Ahh, but digital distribution and higher prices are one of the same. They cannot be separated. The entire movement behind digital distribution is being animated by game companies who are trying to create more revenue.

In a way, I hope these game companies do go digital distribution. It will destroy them. They need the used games market. They need physical games because you can’t exactly wrap a digital copy under the Christmas tree (which is why most games are bought around Christmas). With digital distribution, the “Game Industry” can kiss the children’s market good-bye forever. Children do not run around with credit cards.

If digital distribution took hold, they would not stop there. Then, you would be charged per time or number of times you play the game. You there, in the back, don’t laugh. They see the gravy train of the MMORPG and wish to replicate it for themselves. Now, the MMORPG such as WoW was due to tons of content, but game companies aren’t even interested in that.

Digital distribution is the future, everyone will have to embrace it whether they like it or not. However, many have an erroneous conception of how it will work. The only form viable is cloud computing, where player input data is sent to a data center, and output is processed there and streamed back to a decoder, which in turn outputs its video and audio signals to the TV and speakers. Search on google for 'onlive'. The data centers will be on demand - they will work on a model whereby unused processing power will be sold on a temporary basis.

 

Expect the Wii 2, Xbox 720, and PS4 to be the last consoles to incorporate expensive computing tech. The Wii 3 will probably be released on the fall of 2018, and will feature a decoder, and require an internet connection of 50mbit with very low latency, whose uptime and quality is guaranteed through a quality of service agreement (thus, they will have to partner up with internet service providers). It will have a setup cost of say 49 usd in today's money, and it will probably offer an unlimited monthly subscription plan (perhaps 19.99 usd dollars a month, not considering inflation). But the latter will have to be worked out in order to ensure that games are rewarded for their quality and success given a certain budget, so I'm not really sure. The Wii 3, along with its competitors, will reach hundreds of millions of people - people who seek to be entertained, or in other words, to appreciate all that is beautiful.

 

As for having a physical copy of games. Going by the subscription plan, consumers will be able to buy physical cases which will include manuals and so on through retailers or online. It doesn't sound like much, but it help instill a sense of entitlement towards games that players will have especially or are especially going to appreciate.

 

The entire world is evolving. In a couple of decades, we will enter a golden age where the world population will see all forms of art and entertainment under one sole eye, and reward works of art for their values and teachings, and thus wisdom and sense of appreciation of beauty that they try to instill. The movie industry will crumble, content will be on demand, and wisdom and values will be the ultimate commodity and basic necessity, after water and food. People will start realizing that monetary wealth is trivial and does not lead to happiness nor fulfillment, that they seek all that can glitter, and that thus what they seek is to appreciate God, the divine, or creation, to the same extent in which they are able to appreciate elegance and beauty, all of which are synonymous with each other. We all want to be infinitely satisfied, we can only appreciate that which we can learn from, and thus we strive to reach God, equilibrium, and perfection.

 

The anime and videogaming industry (with the likes of Fumito Ueda) will spearhead this golden age, and we will see many more works of art that will resemble Galaxy express 999, Maison Ikkoku, Nadia: the Secret of Blue Water, Tiger mask, Captain Harlock, Haikara San Ga Tooru, and Pokemon in the subtle ways in which they try to instill a sense of appreciation of beauty and meaning to those fortunate enough to view these shows.

http://www.youtube.com/watch?v=lqRLiFbtaUw&feature=related

http://www.youtube.com/watch?v=K0o9CLvIySY

http://www.youtube.com/watch?v=7EK_rasw5Wo (the solo is stunning)

Wish I could translate the lyrics, they are so beautiful, but I don't have the time.

You can watch Galaxy express 999 legally and for free here:

http://www.crunchyroll.com/library/Galaxy_Express_999