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

 

[Fredrik II]

Thanks, anything you think I should cover going forward?

 

[Fredrik II]

Great idea!

 

[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

 

[Fredrik II]

Very interesting discussion about box vs digital, I've been in this discussion many times and I am not of the opinion that a box product is to be considered higher quality or being a better rated product than a digital only release. I buy only digital download products these days and it has made me turn back to almost PC-only gaming after previously being 50/50 on console/PC.

I respect that gamers are used to a certain buying pattern and that some people prefer a paper manual, still it's inevitable that sooner or later a majority of the sales will take place as direct download. It has a lot to do things the way you are used to, imagine if TV shows in the 50s where delivered in small boxes that you bought in your local "program store" and carried home together with a small description of the show. Wouldn't you still today prefer having the show broadcast directly to your TV controlled directly in the sofa?

Digital distribution needs to evolve to be more convenient, a bit cheaper and easy to use and then you'll have a distribution form and customer experience that is not only comparable but superior to a box product.

Edit: Of course we will continue to release box products as long as it makes sense, but everyone should know we make more from a product distributed by a download portal than a box sold in a store.

 

[Castellon]

... I respect that gamers are used to a certain buying pattern and that some people prefer a paper manual, still it's inevitable that sooner or later a majority of the sales will take place as direct download. It has a lot to do things the way you are used to, imagine if TV shows in the 50s where delivered in small boxes that you bought in your local "program store" and carried home together with a small description of the show. Wouldn't you still today prefer having the show broadcast directly to your TV controlled directly in the sofa? ...

Actually that is exactly how I do watch TV now. I never watch live TV any more.
I go to the store and buy a season or the complete series on DVD/Blu-ray take it home and watch it.
Being able to watch commercial free episodes as many as want when I want has ruined me watching "Regular" TV.

Now a more appropriate example might be, do I still want to do that when I could stream those episodes whenever and how ever I wanted.
With services like netflix and other ... Well I don't think those services are complete enough yet, but they are improving.

There is with this still something to be said for having the physical DVD in my hand and the box for it on my shelf.
I cannot imagine not having my favorite book on my shelf, when I walk by, I see them and remember the high points from the stories they contain.
Same idea with DVD and Game boxes. -End of ramble

 

[Fredrik II]

Actually that is exactly how I do watch TV now. I never watch live TV any more.
I go to the store and buy a season or the complete series on DVD/Blu-ray take it home and watch it.
Being able to watch commercial free episodes as many as want when I want has ruined me watching "Regular" TV.

Now a more appropriate example might be, do I still want to do that when I could stream those episodes whenever and how ever I wanted.
With services like netflix and other ... Well I don't think those services are complete enough yet, but they are improving.

True, the reason people buy their favorite TV seasons is that there are no good streaming TV services. When all digital/streaming services are convenient, full of good content and fairly cheap the customer will rather do what is more convenient. On the other hand, there will always be collectors but that is a totally different market.

 

[Susana]

I think we should also add one of the most important component here. It's not like we are actively moving away from boxed products just for the heck of it. The financial investment, risk and lead times all increase when doing boxed products which means we need to judge the potential of return of investment much stricter = less projects published = less diversity for our community. Add distribution costs to that and the fact that PC space is being reduced in most retail stores (= we don't always get placement for our titles and when we do, often have to pay for that space) and it becomes less of a difficult choice. Our priority is always going to be more projects at less risk. When it makes sense to do boxes and we can get them placed, we will. So far that thinking has turned out to be pretty successful for us and for the numerous dev teams who have been able to get their games published through us. Other publishers might choose a different route and that's good - diversity rules.

 

[Susana]

Is it odd that I am reading this thread with all my boxed Paradox games next to me?

 

[Fredrik II]

As you mention, streaming on-demand should be the format for TV. Broadcasting is only for live event such as sport.

For Lionheart pls check again, it's published by us so it shouldn't have any country restrictions. If it has, pls email GamersGate so they can fix it.