Recently Nedgame, Dutch biggest specialist game retailer refuse to sell PSPgo. And there is a rumor that EB Australia refusing also. The main concern is the high price it carries and the inability to sell UMD games that has been their main source of income.
Since Apple launch its itune stores, digital distribution is getting more and more popular. Smaller developers may find it safer in terms of risk in promoting their game. Xbox Live and PSN has been successful in selling games via download.
Digital distribution can significantly impact retail industry, because middle man can totally be removed. The industry is threaten with the rise of digital distribution. While this is not exactly a fresh topic, console games until recently always need a media.
The introduction of PSPgo, iphone, and the more sophisticated OnLive and Gaikai, we can see the trend that physical media can someday be eliminated.
So is it today? Probably not. According to Sony, the games that are selling well is still smaller and cheaper games by small developers. For full game, people seems prefer a physical media that they can get hold of and has a resale value.
Another reason is because for company like Sony, retailers still distribute their PS3 consoles and games. Sony did try to maintain purchasing parity between their digital download and physical games. Actually purchasing certain games in UMD format is slightly cheaper than getting in on PSN, in hope to prevent further anger from retailers.
Nevertheless game distributing business will face shrinking and need to differentiate.
Monday, September 28, 2009
Digital distribution threatens retail game store
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