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Analyst: GameStop not yet threatened by digital distribution

Posted Jun 20, 2009 at 3:46PM EST by Glenn M.

Listed in: PS3, Wii, PSP, Xbox 360, Nintendo DS Tags: broadband, GameStop
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Downloading... - Image 1


Despite fears that the on-going trend of digital distribution may be bad for retailers, analyst Arvind Bhatia of Sterne Agee believes that retailers and walk-in stores have nothing to worry about. At least not yet. Meeting with four key GameStop execs, the analyst shares his thoughts and predictions regarding digital downloads.

According to GameStop, they've "conducted the most thorough study to date” on the subject, and that the don't see an "addressable market" for digital downloads until 2014. GameStop management also expects only 25% of the market, even by 2014, will have access to digital downloading means, adding that it could also cost them about US$ 100 a month.

Although Bhatia did not specify what those costs would be, it's likely that he was referring to broadband internet service, subscriptions, and other miscellaneous expenses.



More on digital downloading:


Via Gamasutra



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Comments 


 
# bad movexavis75211 2009-06-20 18:11
this was a bad move by sony, yes with the cost of the net each moth, but also not many pssp users hav net, many cant get the net or acsess to it varry much if at all, and how long is the umd going to last now? i doubt there going to keep that for vary long afterwords, they will phase out the umd eventraly

Reply
 

 
# Sony's being smartMangoScango 2009-06-20 18:37
GameStop causes more loss to devlopers than pirates, im sure. Think about it: Used Games. Once a game has been out long enough for a good collection of used copied to collect in gamestop, no one will buy a new copy!! And when you buy a used copy, where does that money go? Gamestop.



Personally, i believe that if you can buy it used from gamestop, than you should be allowed to pirate it.



simple as that

Reply
 

 
# well then...jrsmaster411 2009-06-20 19:07
it's a good thing they're keeping the umd and psp 3000 alive and even releasing more psp3000 bundles

Reply
 

 
# @jrsnaster411___ 2009-06-20 19:45
I agree if Sony wasn't smart they would of canceled all their PSPs but they didnt . It's for those who have internet acces DUH WTF! Xaseix or w/e is dumb.

Reply
 

 
# yeahDFresh 2009-06-20 21:31
good point. maybe devs would have more incentive to make games if they knew that everyone who ever wanted one would have to buy a new copy.



but at the other end, maybe somebody only buys a game because its used, and cheaper, and if it came down to it, that person would find a way to pirate games instead of buying new copies, which would put sony in the same predicament they are now.

Reply
 

 
# I totally agree with you.Relys 2009-06-21 05:43
I mean, I think it's perfectly fine to sell personal used games on ebay and such, but company's should not be able to make huge profits off of it.

Reply
 

 
# Nothing wrongapex05 2009-06-21 09:56
There's nothing wrong with big company's selling used games, i mean if i wanted to buy 20 games i'd rather just buy from a few company's who offer a guarantee on the games rather than 20 different people where i have no clue what i'm getting untill i get it home and try it, then the impossible task of returning faulty games.

Reply
 

 
# WTF!?!?!?!?!ISOHaven 2009-06-22 04:56
1. The average person doesn't have the means to download large format games.



2. Why would Gamestop be threated by something they do themselves? Gamestop sells downloadable games from their website.

Reply
 

 
# WrongEugeneE 2009-06-23 14:58
Buying used games is allowed because it's part of capitalism. Heck, pawn shops have been doing this for years.



What Gamestop is doing is totally legal. And yes, I buy used games from Gamestop.



To MangoScango,



Your comment that if you can buy it used at Gamestop, than you should be allowed to pirate it, this comment is totally wrong.



Pirating games is illegal because you're making copies of a game. Used games are legal because you are selling an official copy that some one doesn't want anymore.

Reply
 

 
# wellMangoScango 2009-06-25 11:13
I realize the leagality (is that a word?) of it, im just saying its the way it should be

Reply
 

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