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Packaged Sales Crash as Digital Distribution Rises |
Listed in: Imports, News, Opinions & Analysis Tags: Blizzard, digital distribution, LAN, onlive, physical sales, starcraft 2, Steam, WiiWare, xbla
With digital distribution networks such as Steam, OnLive, XBLA, PSN and WiiWare, some people are wondering why people go outside and bother to buy games anymore? This is the latest analysis from Cowen & Company.
The last quarter in 2010 showed a great fall in sales and that it's likely to get worse going to August (Q1 Financial of 2011), with people from EA Sports and EA Games expecting the worst selling of Madden 2012. The market is set to slump well over 30 per cent for physical sales. Whilst giving the example of Madden 2012, I do have to say good riddance, but in actuality, the gaming world may go the way of the music industry in terms of cover design.
The concept of a cover or box art has become more of a trophy item given to gather dust in the humble abodes of the aging gamer. I'm sure more than a few of us have our first ever N64 case or classic black cut-off NES cartridge somewhere in our boxes, den of gaming or attic. From a marketing and fianance stand point, digital distribution is by far a greater idea. There is less of a problem of used games sales eating up your revenue, less manufacturing and distribution costs, no breakage fees and server space costs less than buying several modes of transportation...just something to think about.
Ahead of the sales data coming from NPD, only time will tell if Cowen is right with last month and the decrease from console and handheld software. There was a downturn of 15% with PC gaming titles down a gigantic 71% based on tough comparisons on Blizzard's Starcraft 2 release. I think with the way November's turning out and the rest of the year, PC and 360 will do fine in physical sales whilst the real down turn will be if Nintendo and Sony can keep the back end of the year up with only a few major games coming out
What is some of your favourite game box art? And what are you psyched about for the rest of the year?
Via [GameIndustry]
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How many times do we have to explain this?
SO WE CAN OWN THE DAMN GAME!
So playing the game isn't dependent on how long the servers stay up, so we can actually rent games, so we can sell/buy used and borrow games, so we don't have to have a 1TB harddrive so we can spend hours downloading today's 10-25GB games on even some of the fastest connections.
Stop trying to act like DD is the best thing ever and there is no reason to buy physical, there are plenty of reasons, the main one being that you don't actually own any game you buy in DD format.
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The only reason why dd has taken off on pcs is because drm typically ruins any resellability and it can have very good sales. Plus there's still competition.
On consoles there is no competition for DD and while there is the odd sale, it's not normally on the scale of say steam and there isn't any drm which means you can't sell it again and retail copies can be used on any console normally with few issues (except for dlc or online pass).
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i have noticed that ea's store is cutting back on stocking PC titles that have lost momentum in sales like after 6 months.
of course sales have dropped as theres no games worth buying @ an inflated price & if it looks like this is it for Wii i assume most pulishers will discontunue sales of those games sooner than what they did with NGC
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I think the Wii does have a bit of life left in it and Skyward Sword will probably be the first inclination of whether the Big N will be able to continue in the next year.
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So one quarter is proof of the claim? Nonsense. Gee, let's now blame falling econs in more then one country.
The toy industry in general has been on a downward slope for a while now.
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