GameStop not concerned about digital distribution
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.
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 (Page 1 of 2)
Rich @ Aug 22nd 2008 2:35PM
Commence "GameStop sucks!" comments in 3...2....1...
Jakka(Naked Peach Brigade) @ Aug 22nd 2008 2:56PM
Yeah but from what everybody says, Gamestop IS TEH EVIL.
Mr.ESC @ Aug 22nd 2008 3:18PM
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.
Jakka(Naked Peach Brigade) @ Aug 22nd 2008 5:04PM
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.
Red Leader @ Aug 22nd 2008 7:15PM
GAMESTOP SUCKS!
...Aw snap, you got me.
Dirty @ Aug 22nd 2008 2:35PM
Death to the GameStop
required @ Aug 22nd 2008 2:40PM
Download times? What about drive round trip times?
Nushio @ Aug 22nd 2008 2:53PM
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.
Jawmuncher @ Aug 22nd 2008 2:46PM
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.
Noshino @ Aug 22nd 2008 2:55PM
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...
Arttemis @ Aug 22nd 2008 3:04PM
I wish there would be more effort taken by steam or the publishers using steam to make the games available sooner!
Steam is having some issues at getting their games up as quickly as other locations.
Jakka(Naked Peach Brigade) @ Aug 22nd 2008 3:09PM
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.
WhoMe @ Aug 22nd 2008 3:09PM
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.
Arttemis @ Aug 22nd 2008 3:18PM
@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.
FOXHOUND @ Aug 22nd 2008 3:23PM
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.
Boffo the Sock @ Aug 22nd 2008 4:56PM
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.
Psaakyrn @ Aug 22nd 2008 9:51PM
Stop whining about gas prices and walk to the stores.
lazy bums...
FOXHOUND @ Aug 25th 2008 1:33PM
I live in Orlando. Walking to *anything* could result in death by heat exhaustion, plus the fact that nothing worth a damn is walking distance in this godforsaken town.
Maverick Saturn @ Aug 22nd 2008 2:47PM
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.
Dirty @ Aug 22nd 2008 2:52PM
THE FUTURE IS NOW!!!
Creciente @ Aug 22nd 2008 2:54PM
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.
Jonah Falcon @ Aug 22nd 2008 2:56PM
Um, GameStop has game downloads, too, so they're digitally distributing too.
Marty @ Aug 22nd 2008 2:58PM
Not on consoles, they don't.
Shmil @ Aug 22nd 2008 3:43PM
And with that said Gamestop will now allow DD for consoles. They probably will have a monthly fee for access to a large library of games free to download at any time
...wait a second
Mr Khan @ Aug 22nd 2008 2:58PM
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
Vincent Wright @ Aug 22nd 2008 3:09PM
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.
DiRT @ Aug 22nd 2008 3:10PM
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.
Mikey @ Aug 22nd 2008 3:11PM
Journyman? Whatever. He no match for Dayman - fighter of the Night Man!
Daniel @ Aug 22nd 2008 3:21PM
I hear the technologically elite touting on and on about DD, then I drive around the real world and see people STILL filling up the local Movie Gallery on a Friday night. I love DD, but what's so offensive about having both options?
BigD145 @ Aug 22nd 2008 3:30PM
You can't download a peripheral. Certainly not a used one that's 20 cents cheaper than new.
karmaghost @ Aug 22nd 2008 3:37PM
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...
Mike @ Aug 22nd 2008 3:47PM
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.
RabbidMickeyMouse @ Aug 22nd 2008 3:50PM
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.
Leobebes (BDF: Braid Defence Force) @ Aug 22nd 2008 3:57PM
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?
Mr Khan @ Aug 22nd 2008 5:02PM
Usually digital distributors keep records of what you've done, so that corruptions can be averted
greydrak @ Aug 22nd 2008 4:08PM
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
Jacob @ Aug 22nd 2008 4:26PM
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.
leeferdude @ Aug 22nd 2008 5:02PM
Holy hell a Journeyman reference! One of those shows that got screwed by its time slot.
J Fredericks @ Aug 23rd 2008 5:16PM
Journeyman and the bionic woman never got the chance they deserved...
Alzheimers @ Aug 22nd 2008 5:02PM
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.
carterman @ Aug 23rd 2008 12:19PM
I was hoping someone else was going to remember The Journeyman Project.
EEEEEEEEE @ Aug 22nd 2008 5:31PM
Gamestop rules guys you are just hatin cuz its popular or you wanna be cool whatever.
Imagine if there was no gamestop, where would you buy or preorder games?
where would you got for that speciaul edition bonus on the first X of Y game?
Bones3D @ Aug 22nd 2008 5:36PM
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.
The Doctor @ Aug 22nd 2008 5:39PM
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.
lokar82 @ Aug 22nd 2008 6:39PM
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.
Psaakyrn @ Aug 22nd 2008 9:57PM
So house resellers are pirates?
M.A.BAKHEET @ Aug 22nd 2008 9:04PM
...okay
M.A.BAKHEET @ Aug 22nd 2008 9:05PM
What ?
Psaakyrn @ Aug 22nd 2008 9:56PM
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.
Bones3D @ Aug 23rd 2008 4:28AM
"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.