According to GamersGate the digital sales market is predicting 200 percent growth in just the coming year.
Retail games stores could soon be on the way out, set to be almost totally replaced by digital distribution and online games sales within the next year or two according to the predictions of some in the industry.
Notably, GamersGate CEO Theodore Bergquist has said that the digital distribution market is predicting 200 percent growth this year on the PC alone. GamersGate apparently had more than 100 percent growth in the last year and is forecasting further successes despite the credit crunch.
"
When I talk to all the publishers - both small, and really, really, big - digital distribution is on everyone's lips," Bergquist said in an interview with
GI.biz. "
Obviously some publishers are really ready to take these steps, while others aren't. Some still see digital distribution as something awkward, and they don't really know what to do with it, while some are really professional and they have it as a main strategy."
Bergquist goes on to say that once that all the publishers see the digital platform as the future, both for PC and consoles, then the move away from bricks-and-mortar stores will be both sudden and inevitable.
"
I think digital distribution is absolutely the biggest threat they can ever have...Whether it'll happen this year or next, I'm not sure - but I think it's that kind of time frame we're talking about."
"
I think they'll get better on the hardware side, selling hardware together with games," he said. "
But if it's games only, then no way - I can't see [them surviving]. I've been in e-commerce since 1996 and I haven't seen a goods business model better than this. It's so pure online in its nature - I can't really see how a traditional retailer can survive, unless they decide to go online themselves."
What do you think? Are retail stores on the way out? Let us know your thoughts in
the forums.
(part of the reason for using that specific example is so I can complain and moan again at how EA has gotten the price COMPLETELY wrong for that game - £35 for a PC game? Are they actually having a laugh? STILL no European/UK Steam release? £34.99 on EA's online store? WTF?)
Steam system is also awesome although sometimes overpriced. They should sit inline with Play.coms prices or cheaper when they do sales.
High Street stores can never hope to compete with this.
I also wish they had a chart to factor in online sales as I think that the PC industry is in much better shape than most people give it credit for. I think that is why Valve are so secretive about it as they are making a shed load of ££££!
However, Digital Distribution is a different beast - I can see retail stores struggling because they already are - but I do prefer to have a physical product in my hands rather than a purely electronic copy. I put up with Steam for the Valve games, but I don't really like it all that much... and other digital distribution methods I just avoid.
I buy a load of my games from steam though, unless there's a large price difference in which case I'll get it from game or online, which ever is better. Despite game being overpriced I find they do a lot of specials on games which often makes it cheaper than buying from online stores.
As for mirror's edge being £35, in my local stores it's been £25 for months now across all platforms.
The low tech pop still controls the market so retail shops will still be around. The last retail (factory build) item I bought was a laptop because I can't just order the parts like I do my PC.
I totally understand what you mean, but in my opinion I would so much rather have that nice big 5GB file than a load of disks. When I buy a game on disk I always feel damn it, time to back it up because I hate CDs and I feel like its gonna snap or gradually degrade, so there I am with my backups, which I will probably use rather than the physical disk anyway (thanks PowerISO) and I see that nice big EA advertisement filling up my shelves haha. I love Steam, infact I worship it in the way I have my games everywhere I go with no need for a carrier bag full of CDs. All of that was my PERSONAL OPPINION so please dont flame me, you little Pyros lol
Personally, the only thing i've ever received through online distribution was CS 1.6, Source, and Wrath of the Lich King. I wanted to play and didn't want to bother with the stores or waiting, so I bought the online copy and downloaded it, and I had no real problem.
Despite the convenience of getting the software online, it's a pain in my ass to have to download the crap every time i re-format. So i'm left with having to burn the install to a dvd and tuck away my pirate-esque looking disc. If I could download the game immediately, get the product key to my email and receive a disc Netflix-style to my home (so that I have a disc, but cutting the man's packaging costs) then to me, that would be the ideal medium of online distribution.
Short story long, it's fine and dandy, but i'd like to have my discs. If retailers want to slash costs to compete, the time/cost/benefit equation that drives consumerism will keep the market competetive and justify my 10 minute drive to EB Games to pick up a hard copy for a marginal price difference.
It's also nice to have the documentation that comes with a game, sometimes the little booklets of game adds have some cool stuff in them, and things like quick-reference guides and the like are nice to have when you first pick up a game.
^^
I know a lot of ISP's out there are particularly lame with their transfer rates, offering blazing speeds but basically ensuring that you can't use them to their potential. If you're lucky enough to have an un-capped ISP then I think it's much more viable.
Personally I like having discs. And in the case of Steam I really like how they handle both. (Activate the app on the computer and it shows up in steam for either install from disc OR to download it, very handy if that particular app disc has gone away).
Companies come and go... especially game development/distribution companies. Give me games that don't need to depend on some company's server to run or install. As nice as the concept of downloading games straight to your pc is, we are getting screwed in the long run when these servers/companies go offline or are bought out.
Does that mean 'deactivation' in the sense "once Steam is gone as a platform the games are still usable" or "once Steam is gone as a platform that's it the games are useless"?