The last time GameStop chimed in about digital distribution they told us that they didn’t think digital distribution would be a major factor in the gaming market until 2020. Now that’s changed with GameStop saying they have “conducted the most thorough study to date” on the matter.
According to their new findings only 25% of consumers will “have access to the technology required to download full games.” in 2014. Five years from now.
These findings were reported by analyst Arvind Bhatia of Sterne Agee during a meeting with GameStop executives.
According to GameStop executives such digital distribution could cost users $100 per month, not to mention the cost of storage devices.
They do make a good point about the cost of storage. Downloading full games takes up precious drive space quickly. And I’m guessing the $100 monthly fee they are figuring includes the cost of broadband service and possible penalties from providers for increased data transmission. Fail.
The study also claimed that “customers are willing to pay only $39 for downloadable games,so publishers will be less incentivize than some in the industry think.”
I’m no math genius, but if publishers are reducing costs by not having to package games, shouldn’t the cost of distribution be reduced as well? And gamers pay full price for most digitally distributed games already, so where are they getting the reduced figure from?
Of course we have to take this whole report from GameStop with a grain of salt. Their business model is built around putting people in their stores and finding ways for consumers to buy more then they intended too. The upsell.
Buying Prototype? Would you like to buy the strategy guide too?
Would you like a 12 month subscription to Game Informer too?
Modern Warfare 2 will be out in November, would you like to pre-order that today?
You get the idea. Off course GameStop is trying to drag their feet when it comes to digital distribution. They know what it might do to their bottom dollar. But with the growing number of Steam accounts, the future launch of Xbox’s Games On Demand service, the OnLive console, and the PSP Go moving away from UMD it’s clear that the industry as a whole is quickly moving in a new direction. Why spend time and money guessing when it will happen when you know it’s inevitable?
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GameStop still in denial about digital distribution
The last time GameStop’s chimed in on digital distribution they told us that they didn’t think digital distribution would be a major factor in the gaming market until 2020. Now that’s changed with GameStop saying they have “conducted the most thorough study to date” on the matter.
According to their new findings only 25% of consumers will “have acess to the technology required to download full games.” in 2014. Five years from now.
These findings were reported by analyst Arvind Bhatia of Sterne Agee during a meeting with GameStop executives.
According to GameStop executives such digital distribution could cost users $100 per month, not to mention the cost of storage devices.
They do make a good point about the cost of storage. Downloading full games takes up precious drive space quickly. And I’m guessing the $100 monthly fee they are figuring includes the cost of broadband service and possible penalties from providers for increased data transmission. Fail.
The studay aslo claimed that “customers are willing to pay only $39 for downloadable games,so publishers will be less incentivized than some in the industry think.”
I’m no math genius, but if publishers are reducing costs by not having to package games, shouldn’t the cost of distribution be reduced as well? Gamers pay full price for most digitaly distributed games already, so where are they getting the reduced figure from?
Of course we have to take this whole report from GameStop with a grain of salt. Their business model is built around putting people in their stores and finding ways for consumers to buy more then they intended too. The upsell.
Buying Prototype? Would you like to buy the strategy guide too?
Would you like a 12 month subscription to Game Informer too?
Modern Warfare 2 will be out in November, would you like to pre-order that today?
You get the idea. Off course GameStop is trying to drag their feet when it comes to digital distribution. They know what it might do to their bottom dollar. But with growing number of Steam accounts, the future launch of Xbox’s Games On Demand service the OnLive console, and the PSP Go moving away from UMD it’s clear that the industry as a whole is quickly moving in a new direction. Why spend time and money guessing when it will happen when you know it’s innevit
The last time GameStop’s chimed in on digital distribution they told us that they didn’t think digital distribution would be a major factor in the gaming market until 2020. Now that’s changed with GameStop saying they have “conducted the most thorough study to date” on the matter.
According to their new findings only 25% of consumers will “have acess to the technology required to download full games.” in 2014. Five years from now.
These findings were reported by analyst Arvind Bhatia of Sterne Agee during a meeting with GameStop executives.
According to GameStop executives such digital distribution could cost users $100 per month, not to mention the cost of storage devices.
They do make a good point about the cost of storage. Downloading full games takes up precious drive space quickly. And I’m guessing the $100 monthly fee they are figuring includes the cost of broadband service and possible penalties from providers for increased data transmission. Fail.
The studay aslo claimed that “customers are willing to pay only $39 for downloadable games,so publishers will be less incentivized than some in the industry think.”
I’m no math genius, but if publishers are reducing costs by not having to package games, shouldn’t the cost of distribution be reduced as well? Gamers pay full price for most digitaly distributed games already, so where are they getting the reduced figure from?
Of course we have to take this whole report from GameStop with a grain of salt. Their business model is built around putting people in their stores and finding ways for consumers to buy more then they intended too. The upsell.
Buying Prototype? Would you like to buy the strategy guide too?
Would you like a 12 month subscription to Game Informer too?
Modern Warfare 2 will be out in November, would you like to pre-order that today?
You get the idea. Off course GameStop is trying to drag their feet when it comes to digital distribution. They know what it might do to their bottom dollar. But with growing number of Steam accounts, the future launch of Xbox’s Games On Demand service the OnLive console, and the PSP Go moving away from UMD it’s clear that the industry as a whole is quickly moving in a new direction. Why spend time and money guessing when it will happen when you know it’s innevitable?
