The Wester Front #6 - The Digital Distribution bandwagon

[Susana]

The Digital Distribution bandwagon
Nothing changes, everything is new

As we enter Cyber Monday – the day our industry has adopted as it's own “Black Friday”, I felt the need to muse a bit about the state of purchase patterns in the industry.*

Yet to be confirmed by Valve, a research firm concluded the other day that Steam grossed $73.1 million in October alone. When speaking to an industry colleague who stated that, “when digital distribution takes off we will see a totally different market structure,” I must ask whether you must have been living under a rock for the past two years to miss that the change has already happened. We aren't expecting a revolution; we're living in the middle of it! Adding new platforms to the mix (tablet PCs, smartphones, Facebook and more) means we’re in for some exciting times, indeed.

In brief, I would attribute the success of PC digital distribution to the following:

...

Continue reading:
http://www.paradoxplaza.com/thewesterfront/2010/11/the-digital-distribution-bandwagon

 

[Beleg32]

As always very intresting read.

 

[Barkhauer]

Susana - it would be very helpful if there were "Next/Previous" links in the blog articles.

 

[Teurlinx]

Yep, love to read these valuable insights. Keep it going Fredrik!

 

[Fredrik II]

Thanks, anything you think I should cover going forward?

 

[RedRalphWiggum]

Thanks, anything you think I should cover going forward?

The forum.

 

[Fredrik II]

Great idea!

 

[Alexspeed]

The forum.

I second that!

----

Thank you Fredrik for writing the Blog, its great to read it.

 

[Modestus]

 

[Wetew]

Nice reading Fredrik! Love to read you blog! Hope to see you on our warband server aswell, NOP_Server_TDM o

 

[unmerged(514)]

Very interesting reading Fred.

I'd say you make some very good points and overall I agree with you, but one should not understimate the intangibles of shelf space.

A title on the shelf acts like an adverstisement that will be seen by any potential buyer that comes over browsing the games, while intending in fact to buy a book. So, by releasing a boxed game, you end up widening your target market to people who otherwise would never be exposed to a sale online.

Furthermore, there is also among the target base the clear notion, right or wrong, that a game with just an online release is a second or third rate game.
Many people targeted me in the forums, through PMs and even sending me mails about whether Magna Mundi would have a boxed release or not, with the clear intention to gauge its "quality" and seriousness of the whole venture. Even if it is anedoctal evidence, someone even messaged me to ask if Magna Mundi would be a payable downloadable mega mod or a full game built on the merits of its own with a "normal" release (meaning, a boxed release).
People dogged me and the question only subsided, with a sight of relief from the users, when it was pointed to them the info on Paradox website about the platform Magna Mundi is going to be released on: PC-DVD.

In the end, for the time being, perhaps the best aproach is to rely on revenue using the digital sales while keeping a presence on the shelves as a marketing tool to widen the market base.

 

[Woody Man]

Ubik is certainly right about the visibility of hard copies, I go into GAME every time I go into Windsor just to check what's there, and what's going on with the charts, even though they're giving PC games less and less space.

 

[Boris ze Spider]

What i would like is to be able to buy a boxed game and then transfer it to a digital site of my choice, and get the data and registration code and everything.

 

[Alexspeed]

What i would like is to be able to buy a boxed game and then transfer it to a digital site of my choice, and get the data and registration code and everything.

That would be awesome, but i doubt it to happen anytime ever, because the digital distributors compete with each other like everyone else.
The best you might get is a digital copy of a specific digital distributor that has a deal with the company from the game.

Like Paradox had with Gamersgate for a while, and the codes for GG in the boxes, i loved that.
Would be awesome if that would be the standard, but it seems the new trend is just codes
from the publishers themself for their own portals (like Blizzard for example).

I personally dont like that... 20 different portals or more... ect. you see where its going.

I only use Gamersgate out of free will. Steam i use because of the deals mostly,
and all others only because its a requirement for some games.
Some i wont use at all (for different reasons), like the Ubisoft thing,
I simply dont buy Ubisoft games any more since they made that a requirement.

 

[Susana]

Susana - it would be very helpful if there were "Next/Previous" links in the blog articles.

I know, the set up of the blog now is not ideal, there will be improvements.

Kind regards
Susana Meza

 

[gigau]

Very nice reading indeed.

But like Ubik, i'll say that i love to have the shelf version of the game

 

[Woody Man]

What i would like is to be able to buy a boxed game and then transfer it to a digital site of my choice, and get the data and registration code and everything.

Yes yes, that would be fantastic

 

[gigau]

What i would like is to be able to buy a boxed game and then transfer it to a digital site of my choice, and get the data and registration code and everything.

Yes yes, that would be fantastic

+2

 

[Zolotaya]

The big breakthrough will be when Direct Download companies (such as GG) actually set up a brick and Mortar network, where schemes such as what Boris ze Spider suggested are put into place. Brick and mortar retailers will never be completely overcome due to the social needs of people, and the need to make tangible items being purchased. Amazon will eventually evolve into Walmart brick and mortar services (see the purchase of Diapers.com) , just as Walmart is evolving into Amazon online offerings.

The big boys are indeed waking up to the DD model. I foresee the launch of new endeavors such as Microsoft's from these major players mimicking the cycle seen earlier with the book sellers within the game sellers' world. Eventually, the major retailers will actually buy out the established DD retailers in an attempt to consolidate. Few independents will survive unless they can compete at all levels with these guys.

 

[RedRalphWiggum]

I have to admit that I do tend to take games that are on the shelf more 'seriously', even though I know it makes no sense. The Game shop here in Ireland recently got a load of Paradox games on the shelves and I bet when people see them they'll remember them and consider Paradox more favourably. It's a question of visibility. you have to seek out dowload games, you'll see the ones on the shelf whether you want to or not.