Following another (inter)stellar quarter of sales, GameStop's COO Dan DeMatteo says the company is unconcerned about digital distribution, which caused us to instantly "Journeyman" back to 2007 to relive the Penny Arcade strip above. Gamasutra reports that during a post-results analyst call the executive said the revenue stream for digital distribution is "pretty insignificant."
DeMatteo explains that the company doesn't expect digital distribution to be a threat due to current disc-based game sizes and the barrier of long download times. He also believes that the Wii shortage we've seen the last two holiday seasons will shift to Wii Fit this holiday. The planet Earth concurs with that possibility.
Reader Comments (53)
Posted: Aug 22nd 2008 2:56PM (Unverified) said
Yeah but from what everybody says, Gamestop IS TEH EVIL.
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Posted: Aug 22nd 2008 3:18PM (Unverified) said
I just think the people who work there suck I mean well just that one guy in that Eb/Gamestop in the international Miami mall.
If you are reading this go kill yourself loser.
With that said I think I prefer buying the physical version of any game than downloading it; not only because I like the Box art and LE are cool but because, unless we get 1GB per second connections in the future, downloading a game is a b*tch.
It took me a full weekend to download WOW with all the upgrades and stuff.
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If you are reading this go kill yourself loser.
With that said I think I prefer buying the physical version of any game than downloading it; not only because I like the Box art and LE are cool but because, unless we get 1GB per second connections in the future, downloading a game is a b*tch.
It took me a full weekend to download WOW with all the upgrades and stuff.
Posted: Aug 22nd 2008 5:04PM (Unverified) said
Well, 1gbps is a little excessive don't you think?
If you can maintain 1MBPS(I'm lucky enough!) download on Steam then the so-called "bandwidth trouble" is pretty much gone as a 5GB game will only take over 80 minutes to download.
Nowhere near as "good" as it could be, but still better than anything most pple could dream of.
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If you can maintain 1MBPS(I'm lucky enough!) download on Steam then the so-called "bandwidth trouble" is pretty much gone as a 5GB game will only take over 80 minutes to download.
Nowhere near as "good" as it could be, but still better than anything most pple could dream of.
Posted: Aug 22nd 2008 2:40PM (Unverified) said
Download times? What about drive round trip times?
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Posted: Aug 22nd 2008 2:53PM Nushio said
Exactly.
I bought the Orange Box and Half Life: Source off Steam a week ago. I didn't mind leaving my PC downloading everything for the night, the next day I was ready to play.
While gamers do expect instant gratification upon purchase (At least I was anxious to try Team Fortress), buying online was quick, easy and painless.
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I bought the Orange Box and Half Life: Source off Steam a week ago. I didn't mind leaving my PC downloading everything for the night, the next day I was ready to play.
While gamers do expect instant gratification upon purchase (At least I was anxious to try Team Fortress), buying online was quick, easy and painless.
Posted: Aug 22nd 2008 2:46PM Jawmuncher said
They have nothing to worry about, digital distribution on a massive scale won't happen for awhile. There will always be the people who want hard copies of what they own as well.
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Posted: Aug 22nd 2008 2:55PM (Unverified) said
I'm one of those that does enjoy hard copies, but they really should worry...
Steam still going strong, XBLA/PSN titles are selling also, and lately Sony has been selling many big titles through PSN for both PS3 and PSP...
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Steam still going strong, XBLA/PSN titles are selling also, and lately Sony has been selling many big titles through PSN for both PS3 and PSP...
Posted: Aug 22nd 2008 3:09PM (Unverified) said
See, releasing something on Steam means releasing something worldwide at the same time.The servers can't take this kind of thing so they're probably waiting some time so the game hype dies down a little.
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Posted: Aug 22nd 2008 3:09PM (Unverified) said
Funny, I'm on the fence about the new Ratchet game this very moment. I got a phat HDD in my PS3, so space is no problem, but then a hard copy is still nice. Don't know if there is a price discrepency though.
Anyway, I think the PA strip is funny, but then it also shows that the same issue came up back then, and GameSpot is still here (with record sales no less). So maybe, for the forseeable future at least, that comic is just funny and no more.
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Anyway, I think the PA strip is funny, but then it also shows that the same issue came up back then, and GameSpot is still here (with record sales no less). So maybe, for the forseeable future at least, that comic is just funny and no more.
Posted: Aug 22nd 2008 3:18PM arttemis said
@Jakka - Not necessarily. Steam was not selling Assassin's Creed anywhere outside of the US initially after release.
Letting the "hype die down a little" is only going to discourage potential sales... I'm positive that's not something they're interested in.
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Letting the "hype die down a little" is only going to discourage potential sales... I'm positive that's not something they're interested in.
Posted: Aug 22nd 2008 3:23PM foxhound said
I'm also for tangible copies of a game myself, but with the effin' gas prices expected to skyrocket again with the winter months impending; it's definitely an option to just DL the games instead.
And no, GameStop (and electronic media retailers like them) shouldn't worry about digital distribution being a major issue to them this console generation... and possibly the next.
Reply
And no, GameStop (and electronic media retailers like them) shouldn't worry about digital distribution being a major issue to them this console generation... and possibly the next.
Posted: Aug 22nd 2008 4:56PM (Unverified) said
Count me as one of the people that prefers to own a hard copy of games. I will never have to delete a hard copy of a game to make space on my hard drive for hot midget-on-donkey action.
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Posted: Aug 22nd 2008 9:51PM (Unverified) said
Stop whining about gas prices and walk to the stores.
lazy bums...
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lazy bums...
Posted: Aug 22nd 2008 2:47PM Spunky Monkey 190906 said
I think for the time being, like letters vs e-mails, there will always be a time and situation for disks over dd. However, disregarding DD would be iddiotic.
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Posted: Aug 22nd 2008 2:54PM (Unverified) said
I disapprove of digital distribution for full games, but other than that, I support expansions and various add-ons that we can get through downloading.
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Posted: Aug 22nd 2008 2:56PM (Unverified) said
Um, GameStop has game downloads, too, so they're digitally distributing too.
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Posted: Aug 22nd 2008 2:58PM Mr Khan said
They shouldn't be. Broadband in this country, at least, is pathetic. Not available at all in many communities, and many are limited to happy fun $30 a month for 1.5 Mbps, or $50 a month for 5 Mbps
Except for all five communities where FiOS is actually available. They get to pay $150 a month for 100 Mbps
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Except for all five communities where FiOS is actually available. They get to pay $150 a month for 100 Mbps
Posted: Aug 22nd 2008 3:09PM vincentw56 said
Well, some of use live in the stone age of the Internet with our slow network or dial-up speeds. So for us, it is going to be disc based. I don't think digital distribution will take off until everyone in he USA has a chance for high-speed internet. It is a good theory.
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Posted: Aug 22nd 2008 3:10PM (Unverified) said
I don't mind paying $7 or $12 for a DD, but when I wanted to get Warhawk, I wanted the disc and box. When I'm paying full price for a full game, I want something I physically own that I can use on any machine I choose (like at a friend's house) that I can sell, lend, or trade as I see fit.
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Posted: Aug 22nd 2008 3:11PM (Unverified) said
Journyman? Whatever. He no match for Dayman - fighter of the Night Man!
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Posted: Aug 22nd 2008 3:37PM karmaghost said
There is absolutely no reason to shop at places like Gamestop. Just because you're a gamer and it's a store aimed at gamers, doesn't mean you need to waste time there. Just shop at Wal-Mart/Target/Amazon/etc...
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Posted: Aug 22nd 2008 3:47PM (Unverified) said
I'm sure Gamestop is a thorn in the side of every major game publisher simply for the fact that every time someone buys a used game from Gamestop stores, it's money that the publisher never sees. Digital Distribution (DD) will virtually eliminate the sale or transfer of content from one person to another.
As evil as Gamestop is, we should applaud them for slowing the advance of digital distribution. When we buy a physical copy of a game, that gives us the full right to do what we want with the game.(sell, trade, give, blend, etc.) DD takes away all those rights gives them to the game publisher.
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As evil as Gamestop is, we should applaud them for slowing the advance of digital distribution. When we buy a physical copy of a game, that gives us the full right to do what we want with the game.(sell, trade, give, blend, etc.) DD takes away all those rights gives them to the game publisher.
Posted: Aug 22nd 2008 3:50PM (Unverified) said
Honestly, I enjoy GameStop's used game service. The reason is because I'm cheap, and am willing to take what I can get for a lower price (even if it means buying a game with no manual or original casing). Sure, I enjoy having the original casing and whatnot, but its not that important to me in the end.
I don't think digital distribution has the same needs to lower prices that physical games have. If a retailer needs to sell something, they'll lower the price, because shelf space is money, and they could be using that space for something that'll sell better, but they simply cant trash an investment.
Digital distribution is different, because there is no physical hot potato to get rid of, so there's less incentive to lower the price. Sure, an online distributor can easily lower the price, and they do, but from what it seems like, its not out of a need as opposed to retail.
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I don't think digital distribution has the same needs to lower prices that physical games have. If a retailer needs to sell something, they'll lower the price, because shelf space is money, and they could be using that space for something that'll sell better, but they simply cant trash an investment.
Digital distribution is different, because there is no physical hot potato to get rid of, so there's less incentive to lower the price. Sure, an online distributor can easily lower the price, and they do, but from what it seems like, its not out of a need as opposed to retail.
Posted: Aug 22nd 2008 3:57PM leobebes said
Digital distribution is still a horrible conduit for video games. The reason? Games are expensive. At $60.00 a pop if you hard drive gets corrupted, or your hard drive breaks for whatever other reason your chances of going out and buying the game again are pretty slim unlike cd's or movies which range from $10-$20 a pop.
Also what safeguards would publishers have in place so there is no pirating of digitally distributed games? Take a look at the hard drive installs for the 360 and the PS3 you need to still have a hard copy to play the game to ensure less pirating.
Digital distribution has killed the movie and music industry, if it becomes dominant for the video game industry what then?
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Also what safeguards would publishers have in place so there is no pirating of digitally distributed games? Take a look at the hard drive installs for the 360 and the PS3 you need to still have a hard copy to play the game to ensure less pirating.
Digital distribution has killed the movie and music industry, if it becomes dominant for the video game industry what then?
Posted: Aug 22nd 2008 4:08PM (Unverified) said
When the internet's down, no more games?
DD is a nice alternative, but I'd still go to the store and buy the box with the game I can play with or without the internet =P
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DD is a nice alternative, but I'd still go to the store and buy the box with the game I can play with or without the internet =P
Posted: Aug 22nd 2008 4:26PM (Unverified) said
ahahahahahahahahahahahah
But seriously, they don't think something that is cheaper, easier to access, and gives more money to publishers is a threat? Gamestop is fucked.
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But seriously, they don't think something that is cheaper, easier to access, and gives more money to publishers is a threat? Gamestop is fucked.
Posted: Aug 22nd 2008 5:02PM (Unverified) said
Holy hell a Journeyman reference! One of those shows that got screwed by its time slot.
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Posted: Aug 23rd 2008 5:16PM (Unverified) said
Journeyman and the bionic woman never got the chance they deserved...
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Posted: Aug 22nd 2008 5:02PM (Unverified) said
Is that anything like The Journeyman Project?
I stopped caring about the packaging back when they stopped putting cool stuff in the boxes. If it's not for cheap plastic peripherals, I don't see any use for buying a physical product in the store anymore.
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I stopped caring about the packaging back when they stopped putting cool stuff in the boxes. If it's not for cheap plastic peripherals, I don't see any use for buying a physical product in the store anymore.
Posted: Aug 23rd 2008 12:19PM (Unverified) said
I was hoping someone else was going to remember The Journeyman Project.
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Posted: Aug 22nd 2008 5:36PM Bones3D said
Personally, I'm confused as to why anyone would want digital-only distribution of game content when it's practically guaranteed to be tied specifically to your console and your identity with zero means to transfer the ownership of said content to another party once you tire of it. This violates the very concept of "trade" at it's core by making the exchange of goods of value a one-way street. Once you buy any content in this manner, it completely loses any real-world value to anyone but you personally. Yet the money you handed over for it can still be re-used over and over on into infinity.
This type of uneven trade can potentially harm the consumer in the long term. We only fail to see that due to our demand for instant gratification.
Unless fundamental changes are made to how we handle digital distribution of content, such as having the option to sell the content back to the provider instead of simply being forced to delete it and eat the loss, it will only serve to harm our overall economy... especially at the consumer end, where decades into the future, we will ultimately have nothing to show for our years of hard work except for a few bits of data stored on an obsolete, broken down hard drive.
At least with a physical item not tied to any one person, you can always find someone willing to buy it and recoup part of your losses when you really need to.
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This type of uneven trade can potentially harm the consumer in the long term. We only fail to see that due to our demand for instant gratification.
Unless fundamental changes are made to how we handle digital distribution of content, such as having the option to sell the content back to the provider instead of simply being forced to delete it and eat the loss, it will only serve to harm our overall economy... especially at the consumer end, where decades into the future, we will ultimately have nothing to show for our years of hard work except for a few bits of data stored on an obsolete, broken down hard drive.
At least with a physical item not tied to any one person, you can always find someone willing to buy it and recoup part of your losses when you really need to.
Posted: Aug 22nd 2008 5:39PM (Unverified) said
I was extremely surprised that only one post before this even mentioned Journeyman in the comments.
Journeyman was, second to Heroes, the greatest show NBC had in its line up, and it was canceled to make room for the brainless Bionic Woman remake.
Network executives are evil. EVIL.
Hopefully it will be released on DVD and get a movie to finish up the storyline, ala Firefly.
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Journeyman was, second to Heroes, the greatest show NBC had in its line up, and it was canceled to make room for the brainless Bionic Woman remake.
Network executives are evil. EVIL.
Hopefully it will be released on DVD and get a movie to finish up the storyline, ala Firefly.
Posted: Aug 22nd 2008 6:39PM Cranky Penguin said
Pirates = people who get games with the game publisher/development studio getting no money from it
Gamestop = store that basically only sells used games where the game publisher/development studio get no money from it
Gamestop = pirates
I think digital distribution would take off a lot quicker if they would give a price break. Digital distribution always is priced the same as retail which is ridiculous since the publisher has to pay for disk manufacturing, packaging, instruction manuals, etc. which you don't get with digital distribution. When you buy digital distribution, the companies are saving money which should translate to some kind of price break for the consumer. I am staying away from digital until the companies make it worth my while.
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Gamestop = store that basically only sells used games where the game publisher/development studio get no money from it
Gamestop = pirates
I think digital distribution would take off a lot quicker if they would give a price break. Digital distribution always is priced the same as retail which is ridiculous since the publisher has to pay for disk manufacturing, packaging, instruction manuals, etc. which you don't get with digital distribution. When you buy digital distribution, the companies are saving money which should translate to some kind of price break for the consumer. I am staying away from digital until the companies make it worth my while.
Posted: Aug 22nd 2008 9:56PM (Unverified) said
It's not a product, it's a service. You don't go asking a barber for a refund when youe hair grows long again.
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Posted: Aug 23rd 2008 4:28AM Bones3D said
"It's not a product, it's a service. You don't go asking a barber for a refund when youe hair grows long again."
But it's not a service. I'm not going up to the developers and saying "make me a game at a price and terms that I will negotiate with you ahead of time". This is mass production of a identically functioning item. The only differing factor from copy to copy is an identification stamp of some form.
This is kind of like saying you don't actually "own" your car, but instead are merely paying thousands of dollars for the privilege of the car's functionality and VIN number.
Would you really be so understanding to the plight of the car's manufacturer if they suddenly started claiming that you don't have any right to resell the vehicle to someone else on the grounds that it might reduce their potential customer base by one?
The fact is, people who buy these games used are unlikely to buy these games new at their full MSRP simply because they don't want to spend that much money or lack the funds to afford them at full cost.
If anything, this is all the more reason game manufacturers *should* buy back older titles for resale. This way, they can cut back on overall manufacturing costs and still meet market demands at variable price points. Those of us who want the game right now can pay the premium, while the rest of us can simply wait for slightly less-than-perfect copies at a lower price. (Each generation of refurbished game discs will be slightly less perfect than the last but compensated by a lower cost to own, and so on...)
This would also cut back on the total number of discs that end up in the landfill at their end of life. And, as an unintended side effect, a pristine sealed copy of such a title would have a very high collector's value far earlier than most games do now, due to the significantly reduced numbers of manufactured discs released to the masses... something a digital-only distributed game cannot do while staying within the limitations of the EULA and whatever DRM it's infected with.
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But it's not a service. I'm not going up to the developers and saying "make me a game at a price and terms that I will negotiate with you ahead of time". This is mass production of a identically functioning item. The only differing factor from copy to copy is an identification stamp of some form.
This is kind of like saying you don't actually "own" your car, but instead are merely paying thousands of dollars for the privilege of the car's functionality and VIN number.
Would you really be so understanding to the plight of the car's manufacturer if they suddenly started claiming that you don't have any right to resell the vehicle to someone else on the grounds that it might reduce their potential customer base by one?
The fact is, people who buy these games used are unlikely to buy these games new at their full MSRP simply because they don't want to spend that much money or lack the funds to afford them at full cost.
If anything, this is all the more reason game manufacturers *should* buy back older titles for resale. This way, they can cut back on overall manufacturing costs and still meet market demands at variable price points. Those of us who want the game right now can pay the premium, while the rest of us can simply wait for slightly less-than-perfect copies at a lower price. (Each generation of refurbished game discs will be slightly less perfect than the last but compensated by a lower cost to own, and so on...)
This would also cut back on the total number of discs that end up in the landfill at their end of life. And, as an unintended side effect, a pristine sealed copy of such a title would have a very high collector's value far earlier than most games do now, due to the significantly reduced numbers of manufactured discs released to the masses... something a digital-only distributed game cannot do while staying within the limitations of the EULA and whatever DRM it's infected with.
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