GameStop details three-point plan for digital distro future
by David Hinkle 
{ Oct 22nd 2009 at 10:00PM }
GameStop's three main goals to adapt included increasing in-store sales of point cards for online purchases, expanding its digital distribution of PC and casual titles via its website and making a strategic investment in the space or acquiring an online entity specializing in digital distribution. The first two are pretty cut and dry, but that last item really gives one food for thought.
There are certainly a plethora of online distributors that GameStop could own; Steam, Greenhouse, Impulse, GoG and Direct2Drive are all established and popular digital distribution services, though we think GameStop may have some trouble should it pursue Steam or Direct2Drive -- which are owned by Valve and IGN (News Corp.), respectively. And, hey, if GameStop decides to purchase any one of these and doesn't like it, there's always the option to trade it back in for ... ah, forget it.
Reader Comments (Page 1 of 2)
DBuck_Eye @ Oct 22nd 2009 10:03PM
I'm sure everyone would much prefer it if Steam were owned by the saints who run Gamestop as opposed to those greedy bastards at Valve... not.
danthaman15 @ Oct 23rd 2009 6:35PM
*shudders at the thought*
Obie @ Oct 22nd 2009 10:07PM
I see what you did there, you sarcasm-ed the sarcasm by using sarcasm!
Sora @ Oct 22nd 2009 10:10PM
Mind = blown.
Special Agent Steve @ Oct 22nd 2009 10:16PM
That's like... far-OUT man.
Don't make my think-box hurt that much again.
Cheesus Crust @ Oct 22nd 2009 11:25PM
Or you know, EXPAND the PC section instead of removing it all together.
Alton Brown [ XBL: LordToastington] @ Oct 22nd 2009 10:03PM
I'll always prefer hard copies over digital ones.
CH3BURASHKA @ Oct 22nd 2009 10:13PM
That's what she said. Copies is a euphemism.
RKN @ Oct 22nd 2009 10:16PM
Even for music? Look how popular MP3s have become compared to music CDs, the general public has welcomed digital music with open arms. The same can happen with other entertainment forms.
I also personally prefer my games in physical format but my perception may change in the future, just as it has for music, same for others as well.
Whereas I like having a physical box, especially a collector's edition, it is also cool that I can rip my games
RKN @ Oct 22nd 2009 10:16PM
into an ISO file and store all games on one external hard drive. Broken comment FTW!
Alton Brown [ XBL: LordToastington] @ Oct 22nd 2009 10:18PM
Games, that is.
Reuben @ Oct 22nd 2009 10:26PM
I prefer physical copies of everything. Also, collecting CD's is my official hobby. I have over 478 legitimately bought CD's.
esposch @ Oct 22nd 2009 10:33PM
@RKN
Yeah, what you said about music is true.
Now, if the RIAA could realise this rather than bitching about lost profits and trying to sue everyone...
THE WICKER MAN (BWF) (GT: Dalek Prime) @ Oct 22nd 2009 10:34PM
Your mother is a digitally distributed game.
Durden @ Oct 22nd 2009 10:36PM
@Reuben I'm the same way. I really want physical material when it comes to music. Nothing like flipping through the artwork and reading lyrics and production credits while listening. The Flaming Lips' Embryonic just made 524 for me. Good album by the way.
Reuben @ Oct 22nd 2009 10:43PM
@ Durden
I just purchases Embryonic myself! I wanted the special edition, but couldn't swing $40. Great album. I've never known anyone who loves CD's as much as I do. Good to know there are more music freaks out there.
Alton Brown [ XBL: LordToastington] @ Oct 22nd 2009 10:50PM
I own around 200 vinyl records. Not as many CDs, though.
Quattro @ Oct 22nd 2009 10:52PM
I prefer hard copies too. Mostly because, you know, I like to be able to sell my games.
Reuben @ Oct 22nd 2009 10:53PM
I have a few vinyls, such as those from the Radiohead In Rainbows special edition and the limited reissue of Pearl Jam's Ten, but besides that the vinyls that I own I inherited. I'm not sure as to the number, but it's up there.
RKN @ Oct 22nd 2009 11:19PM
Quattro, even having physical copies and being able to sell them in the future may become a memory. Already for many PC games, you are required to authenticate them to a limited number of computers and thus it is very difficult to sell the game later on.
With the state of many videogame companies becoming more douchey each day, who knows if this will extend to console games as well? Maybe not since with PCs, I can easily get a game and rip it to my hard drive to keep forever whereas it is much harder with consoles, thus why you cannot rent PC games, and additionally, many PC games lack demos so I have to torrent a PC game just to try it out!
AerialAngel @ Oct 22nd 2009 10:07PM
I prefer the digital distribution age. But for gods sakes include printable game manuals or the actual manual itself. I hate buying games with these built-in manuals...or worse ones that dont include anything at all.
I know i can read the manual or something online but i always like having it with the games case =/
embassy @ Oct 23rd 2009 2:46AM
Seriously. Gaming manuals make taking a dump twice as fun.
Alzheimers @ Oct 23rd 2009 9:52AM
Manuals in this day and age are completely useless. If a game doesn't teach you in the first 5 minutes everything you need to know, the programmers didn't do their job.
It's not like they're even creative or interesting anymore. Remember when instruction manuals were more like private diaries of the characters themselves? When they contained incomplete but critical maps for new players to fill in, and well drawn art instead of miniscule screenshots?
Jack @ Oct 23rd 2009 6:29PM
Geez do you actually have Alzheimers?
I don't remember SMB showing me how to play. The instruction manual did. Though you are right about having cool art and maps.
My point is games are filled with ugly, immersive breaking, usually obvious tutorials. If game manuals were doing their job we wouldn't need programmers to put these stupid things in 'em.
CH3BURASHKA @ Oct 22nd 2009 10:12PM
Or plan B: buy ALL of the digital distro's. They have enough money by now, right?
Michael T [Planeteer | Power of Mr. T] @ Oct 22nd 2009 10:15PM
[insert inevitable "Phase 3: Profit" joke here]
CheeziePotato @ Oct 22nd 2009 10:15PM
Physical games are for consoles and digital distribution should be for handhelds.
AerialAngel @ Oct 22nd 2009 10:45PM
I agree completely.
Chris @ Oct 22nd 2009 10:16PM
I am looking forward to trading in my old digital downloads for store credit.
neoalec @ Oct 22nd 2009 10:48PM
I believe our new product, Duff Free, will be more popular than the original.
Richard 2.6 @ Oct 22nd 2009 11:01PM
I'm sure what they're really working on is figuring out how to get people to put money down to reserve games that'll have virtually infinite supplies on day one, along with how to invent the used digital download.
WREturns (Please buy and rate my iPhone game, Shape Tapper!) @ Oct 22nd 2009 11:16PM
They're already doing it. Pre-orders for downloadable games will be accompanied by in-game bonuses.
RKN @ Oct 22nd 2009 11:20PM
These pre-order bonuses are crap, I hope that later onwards, you would have the option to download them (probably paying) if you didn't pre-order the game, don't make it exclusive to them.
finnith @ Oct 22nd 2009 11:07PM
Ebgames.ca has really got to get its act together as its miles behind its U.S. counterpart. The Canadian site is hardly updated, showing ads for NHL 2009, and it's still impossible to see game prices let alone purchase them.
WREturns (Please buy and rate my iPhone game, Shape Tapper!) @ Oct 22nd 2009 11:20PM
The good part about a digital future is that the developer will get a piece of every copy sold. No more used games businesses to bankrupt studios, no more difficult to find cult classics, no more elitist prick game salesman who think they're rad and then ask me which console I want Infamous on. I have seen the future of game distribution, and the future is glorious.
RKN @ Oct 22nd 2009 11:22PM
I'll be more favorable to DD if I can rent, borrow and sell my purchased games as easily as a physical copy.
Also with DD, the console manufacturers will try to be the only ones to sell the game on their network, no competition from retailers and thus, no price competition as well. There are many PSP games on the Playstation Network that I can find cheaper with a physical copy than their copy. If only with a PSP Go, I could have a physical copy and rip it to the machine.
leo2178 @ Oct 22nd 2009 11:41PM
If the current Digital Distribution model ends up becoming the only way to get games, then I guess I'll have to find a new hobby. Most of the content is way overpriced, and since the console manufacturers have sole control over the content and distribution it's just gonna get worse. I'm still waiting for those micro-transactions everyone was talking about.
DivinedSin @ Oct 22nd 2009 11:56PM
In my opinion, the main caveat to digital distribution is that there are still people that do not have internet either because they don't want to pay for it or don't have any interest in it. Or if they do, it's not broadband and downloading games may be cumbersome. Because GameStop is a physical b&m store, it makes sense that people think of it with physical media in mind. Additionally, people go there for advice, or just simply to browse and ask questions. Again, without internet or anything this is basically impossible to do if DD becomes mainstream. So, I think the easiest way for GameStop to survive is simply to work with the companies the way they do now, but for digital distribution.
For example, you still pick a game up off the shelf, still take it to the counter, pay for it with cash/credit/etc and GameStop uploads the game to your PSP or whatever. Afterall, companies use places like GameStop not simply because they sell games, but because they provide a place for advertisement and create a community to share ideas and opinions. Salesmen help push sales, convince those on the fence, and depending on the employee, will help you buy a good game and not a crappy one. All of that is very valuable to the gaming industry, and if companies truly work with places like GameStop and Best Buy and Wal-Mart, then it wouldn't be inconceivable to see cheaper than MSRP games. Certainly the concept of a "used" game is removed from the DD model, but perhaps a return credit and a removal of the game from your device is feasible.
DivinedSin @ Oct 23rd 2009 12:02AM
Additionally, if it's built properly from the ground up, it's not out of the question to have different kinds of demos (like timed, content removed, or limited access to name a few types) to supplant the rental concept. These demos can be distributed to just Blockbusters and Hollywood Videos. Considering that the companies will no longer have to pay expensive shipping costs or worry about disc replacement, etc, they might be happy to replace that cost with servers and digital space. K I'm done.
Wayne Campbell @ Oct 23rd 2009 12:38AM
So buy utilizing online download sales and then pushing points cards and the like, it looks like GameStop will pretty much be nothing more than vending machines.
Tumes @ Oct 23rd 2009 2:21AM
Several comments responding to some of the posts:
1) Music downloads are a poor comparison to gaming. The reason music downloads are popular is because before iTunes you would have to buy a $14 CD for the one single you want. So essentially you paid $14 for one song. With iTunes, the cost of that song is reduced to $1.29. Also, the entire music industry has been losing sales digital or otherwise. People are just not buying as much music even if they can do it quickly over iTunes. A game or a movie cannot be split into 12 different sections without losing the whole experience, so when you pay $60 for a game you are playing for the whole thing, not just to get one part of the game.
2) Digital distribution will not be good for the console consumer. PC DD works because all kinds of people make PCs and none of them control a distribution network. Consoles on the other hand are controlled completely by their manufactures. This will lead to a vertical monopoly in the console market where your only option is to buy the game from MS, Sony or Nintendo. This will lead only to more profits for the companies and no savings for the consumer. Moreover, DD will remove our ownership rights. If you cannot transfer your ownership of an item to another person, then you do NOT own that item. What you have is a life time lease (life estates for real estate people). And who is to say one of these companies won't go bankrupt or leave the console market?
3) There has been a lot made of how the used game market has hurt publisher profits. I have a hard time to believing this. First there is the Price/Demand Curve, which says that at certain price points so many people are willing to buy a product and as the product gets cheaper more people are willing to buy it. However, that also means that at certain price points people are not willing to buy your product. That is where the used game market fits in. People who generally buy used games are people that did not find the game to be worth the initial price. Since they were not willing to buy it at the initial price, then the sale was never "lost" to used games since it was never going to happen in the first place. As an example, think about how many times you go to the movies and watch previews and say that a certain movie looks like a rental. The reason for that is it is cheaper to rent the movie and since the movie does not look that good to YOU, you will wait for its release on rental services rather than pay $9 to see it in the theater. To me the publishers complaining about used games is just a scape goat for slow sales, especially in these difficult times (EA still can't figure out you need to make good games to make money).
4) The used game market probably helps sell more new games the same why the used car market helps car makers sell new cars Since I can trade in my car and I know I can get $5000 for my current car that means I do not have to save as much cash to buy a new car. Now they guy buying my $5000 used care was never going to buy a $30,000 new car, so its not a "lost" sale to the car manufacturers. So I can go and trade in my games I don't play anymore and buy a new game more frequently then if I did not have the trade-in option. Now the guy buying my used games clearly did not think the game was worth the initial sales price otherwise he would have already bought the game, so again no "lost" sale.
5) So what are we getting with DD - Convenience. So in theory I can download the game faster than buying it and not take up my time going to the store. It seems to be that we are giving up a lot for perceived convenience.
butaneko @ Oct 23rd 2009 11:36AM
Well commented!
I feel like people are so gung-ho about giving GameStop the middle finger that they are forgetting the tremendous benefit that comes with owning a physical copy of the game. I fear the day when I can only purchase $60 games from XBL or the Playstation store.
Monica Dickey @ Oct 23rd 2009 2:47AM
Gamestop needs to step it up if they want to do anymore than be a "point card vending machine" as someone nicely called it.
Although I wonder if hard copies will stay alive because apparently so many people love trading games in, and I don't see how digital format could allow that.
Maybe having more demo stations could help them out to give people a chance to really try games before buying. But if broadband gets faster and people can stream demos that idea may not last in the long term.
Jack @ Oct 23rd 2009 6:34PM
What the?
Are you Kathrine Taylor on AoM?
Dirty @ Oct 23rd 2009 3:57AM
Phase 1: Death!!!
Phase 2: TO!!!
Phase 3: Gamestop!!!!
t_m @ Oct 23rd 2009 5:16AM
No trade ins on PC games!!
--
But anyway, that's all well and good for the PC platform, but i don't know how they'll compete with MS, Sony and Nintendo on the console platforms. Those guys have the digital downloads all locked up.
koehler83 @ Oct 23rd 2009 7:10AM
How about you just hand off a % of used game sales to publishers so they'll maintain their current relationship with you. That way we can all maintain our ability to buy and collect physical media at retail.
t_m @ Oct 23rd 2009 7:39AM
Actually, does gamestop even SELL pc games? Anyone been to check recently?
RKN @ Oct 23rd 2009 12:34PM
Barely.
D @ Oct 23rd 2009 10:25AM
Seriously, digital distribution is nice and all, but all its going to do is force people to buy things at retail prices. I don't know about a lot of you, but I subsidize my new game purchases with games I do not play anymore? Can you trade in a digital copy of a game????