GameStop Study Claims Game Downloads Not Viable Until 2014
Retailer GameStop has claimed that digital game downloads will not really take-off until 2014.
Their study also concludes that gamers are only willing to spend $39 per downloadable game.
To quote: In what it claims is the "most thorough study [of its variety] to date," videogame retailer GameStop has found that digital downloads - like those found on Steam, Impulse, Xbox Live Arcade and other such services - won't be making any real waves until 2014. Er, what?
And even once the strange, mysterious stardate of 2014 brings widespread acceptance of things like "The Internet," apparently only 25 percent of customers will "have access to the technology required to download full games."
Also, the study found that, as of now, gamers are only willing to spend $39 per downloadable game, "so publishers will be less incentivized than some in the industry think."
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$39 is an amazing price point for developers, what are they talking about.
Cost of materials per disk, distribution, manuals, and a great deal of "artwork" will be eliminated, only cost would be on the digital distribution, but that would be on the part of Sony or the similar, who receive a royalty anyways.
As for the "technology" only being available to 25% of the population, video games are and always have been the great driving force. 0-1% of the population had a Bluray player before September 2006. :P
I think that digital distribution would hurt Gamestop. I think it will happen well before 2014. I mean aren't they already contemplating it for the PSP?
AFAIK PSN, X-Box Live Arcade and Wii-ware have all been doing quite well (otherwise they would have tanked) so I think this article is a bit off base. Now if they're talking about a complete overhaul where all games become digital, they might be close. However, it doesn't sound as though that's what they mean. 25% of customers having access to the technology?
What's that, a console and the internet? Last I checked, just about everybody I know that has an X-Box or PS3 has the internet. Most people nowadays have internet access and if you can afford either of those consoles you generally (as a rule of thumb anyway) can afford internet. The only deciding factor might be 360 users who don't have a hard drive yet, but at some point those will be ubiquitous in consoles as well (although nintendo might wait another decade of course).
If you don't live in New York, New Jersey, Georgia, Florida, California, Washington, Virginia, you probably won't get more than 768kbs... That's just a rough suggestion. Also, there might be talking about the world... and when Africa gets a complete T3 connection across the continent for every house, starvation will no longer be an issue.
It sounds like Gamestop is trying to discourage the gaming industry from going to digital downloads. This company makes it's money off of the physical game itself, how else are they going to buy your physical game for $15 and resell it for $35? The big wigs in corporate are shaking in their boots. And come on I'd much rather pay $39 to download a new release then drive to the store wait in line (depending on the title) and pay $59