According to Gamestop's Sterne Agee analyst, Arvind Bhatia, retailers have nothing to fear from digital distribution -- not for the next five years, anyhow. Speaking to Industrygamers, Bhatia disclosed that Gamestop management has been conducting thorough studies on the capabilities of digital downloads and its potential adoption for several years now and that the findings are still in favor of brick-and-mortar establishments. Bhatia predicts that a market for downloadable titles won't put serious pressure on retailers until 2014, which he proclaims will be a time when "25% of the population" will have easy access to download technology and when price and storage capacity won't be such a concern.
Although Gamestop's study might sound like it's trying to combat digital distribution, Bhatia states it's not about competition but more on adaptation and learning how to profit from the changing distribution channels. We can already see retailers taking a slice, stocking network prepaid cards in stores and offering DLC and full game codes stuffed inside retail boxes. If this is how digital distribution is already affecting retailers, how much moreso in 2014?
Reader Comments (63)
Posted: Jun 23rd 2009 12:20PM pika2000 said
I have mixed feelings about that. Recently I purchased a PC game that requires Steam activation. When it arrived, the DVD was scratched and unreadable. Thanks to Steam, I just register the game and download it from Steam, instead of having to deal with returning/exchanging the game, which is not easy these days.
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Posted: Jun 22nd 2009 10:43PM (Unverified) said
For the people thinking once it goes all digital we won't get good deals like being able to buy used games and trading them in, take a serious look at Gamestop. Your buying a $60 game and only being able to trade it in for $20. A $60 used game will generally run you $55 WOW WHAT A GOOD DEAL. Steam is digital distribution and they are always running sales such as 50% for Left for Dead or 20% off all MMO's, which you will NEVER see happen at Gamestop.
Posted: Jun 22nd 2009 10:58PM Shadowbender said
Physical copy all the way.
Games are like trophies. Some day, you might want to put your favorite game on display and be able to look at it everyday. Can you do that with digital downloads. No.
And I don't feel safe when my game is stored away on my hard drive. I want to have it right there, on my shelf , safe and secure.
Games are like trophies. Some day, you might want to put your favorite game on display and be able to look at it everyday. Can you do that with digital downloads. No.
And I don't feel safe when my game is stored away on my hard drive. I want to have it right there, on my shelf , safe and secure.
Posted: Jun 22nd 2009 11:30PM (Unverified) said
Physical game copies are like books: showcasing them just makes you feel smarter.
Posted: Jun 22nd 2009 11:38PM NightElve said
Yeah I fully support phyisical copies. I don't think it's such a good idea to go for a full digital distribution only.
Call me old fashion but I like to have a physical game collection and know that in 15 years from now, if my console is still working I can still play all those games, without getting worried about Sony, Microsoft or Nintendo went out of the business and no longer are supporting their online service.
Now as long they release physical and digital version of their games I'm fine with it.
Call me old fashion but I like to have a physical game collection and know that in 15 years from now, if my console is still working I can still play all those games, without getting worried about Sony, Microsoft or Nintendo went out of the business and no longer are supporting their online service.
Now as long they release physical and digital version of their games I'm fine with it.
Posted: Jun 23rd 2009 11:42AM (Unverified) said
True that. Wouldn't it be terrible if they went out of business and suddenly you harddrive dies.How are you going to get your games back?I don't really see this working.
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Posted: Jun 23rd 2009 12:28AM The Sailerman said
The best thing about digital distribution will be the inability to "sell out" of a game. No more running between different stores on the launch day of some highly-anticipated game because a store sold out or didn't get their shipment.
While I do like having a physical copy of each game I own, moving over to all digital distribution won't really bother me, as I rarely trade in games. Microsoft just needs to make it easier to expand the memory on the Xbox 360/the next Xbox, so we can store more than ~12 games at once.
While I do like having a physical copy of each game I own, moving over to all digital distribution won't really bother me, as I rarely trade in games. Microsoft just needs to make it easier to expand the memory on the Xbox 360/the next Xbox, so we can store more than ~12 games at once.
Posted: Jun 23rd 2009 5:50AM R Kasahara said
Yeah, this. As a fan of SRPGs and other niche genres, I hate having to hunt down games that have limited runs or are otherwise due to go out of print, when on DLC services, they could theoretically live forever.
I prefer physical copies as well, but there's some nice benefits to DLC services.
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I prefer physical copies as well, but there's some nice benefits to DLC services.
Posted: Jun 23rd 2009 2:46AM Roncore said
digital distrubution would destroy the used game market!
imagine how much cheaper PSN and XBLA games would be if you could purchase them second-hand!
won't somebody please think of the savings???!!!!
imagine how much cheaper PSN and XBLA games would be if you could purchase them second-hand!
won't somebody please think of the savings???!!!!
Posted: Jun 23rd 2009 12:17PM pika2000 said
Could be right, because:
1. We're going from unlimited internet to the ever decreasing bandwidth caps.
2. Broadband access is hardly available everywhere, yet. Most areas are stuck with a monopoly/duopoly broadband providers with zero improvements for decades.
3. Pricing for download versions of games are not cheaper.
Although I like Steam, IMO the only reason software makers going online distribution is to reduce piracy, which is sad since the problem with piracy is usually price and/or access, something that are not necessarily resolved by current digital distribution.
1. We're going from unlimited internet to the ever decreasing bandwidth caps.
2. Broadband access is hardly available everywhere, yet. Most areas are stuck with a monopoly/duopoly broadband providers with zero improvements for decades.
3. Pricing for download versions of games are not cheaper.
Although I like Steam, IMO the only reason software makers going online distribution is to reduce piracy, which is sad since the problem with piracy is usually price and/or access, something that are not necessarily resolved by current digital distribution.
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