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The Case For Retail

More and more, there is talk in the industry of the coming download-only revolution.  Analysts predict that all hard copies of media will soon disappear, and, while many like to preach the virtues of this new path, I find it very troubling.  As things stand now, when a consumer purchases a hard copy of a game, that consumer owns that game.  He may sell, trade, or do whatever with that game, because he owns that disc.  Therefore, the content on that disc cannot be revoked.  As long as the disc and the console on which it plays function, then the consumer can continue to use that content.  In a download-only world, this might not be true.

     When the only means of accessing content is by downloading off of online services such as Xbox Live and Playstation Network, then distributors hold all the power.  Not only can they set prices as they see fit, but they may also determine the usability terms of products distributed over the online services.  Gamers might never own the content, merely license it for a period of time.  Then, if the consumer wanted continued access to the content, the consumer would have to renew the licensed use of the product.

     While retailers are obstensibly middlemen, and middlemen do add a layer of cost to any product, retailers act as a price control on video games.  Retailers are forced to compete in an open market where others offer the same products.  If one retailer lowers the price for a game, then all the other must at least match this price to stay competitive.  A retailer will also not carry a product if it is too expensive for its consumers.  In order for retailers to stay competitive in an open market, they must carry products that will regularly sell.  Products priced too highly for their perceived worth by consumers will not be carried by retailers.  This helps to stabilize the price of games at a managable sixty dollars.  Take retailers out of the equation, and vertical monopoly appears.  The publishers and distributors of video games will control not only the production of content, but also the distribution of content.  In this scenario, consumers and gamers are likely to lose.

Comments
  • i would much rather have a hard copy of my game.. so if they do this they better give me a code or something so i can re dowlaod it if my system messes up or something.

  • I agree with all your points.

    Being an enthusiastic collector of video games myself, I am both intrigued and frightened by this brave new future of digital distribution we now face.  I like to physically own a game and to show it off on my 'shelf', but I can't deny the ease of access and availability with which downloadable content can be purchased.  As a collector, I can now purchase games that would fetch ridiculous EBay prices, on the other hand, I may have to continually pay for that same license to own the right to keep playing it.

    It's a double-edged sword and nobody is taking any steps to soothe the consumer mind at the moment...

  • I also agree with retailers - while at times it is inconvenient to drive out and get a game, instant gratification also comes with a price. You can't return a crappy purchase nor can you talk with someone at the point of sale in the same manner that can be done if you were to convert to DL only. On top of that, DL only products remove consumer control.

    When I buy a hardcopy of a game, I can let someone borrow it, I can put it away in the case and only take a marginal amount of physical space in a drawer, and I can trade it back in when I'm done and apply the 'earnings' towards another game. With DL only, developers and publishers can limit the conditions of how and when I play it, I can't trade it back in when I'm done, and if I have to store it on some kind of physical drive or delete a game I did enjoy and want to keep in order to make room for another game I want.

    Like Ben Franklin said - those who give up liberty for security, deserve neither.

  • Well I think it is great to move to DL only, with the PSN you always can go back to past downloads it never leaves so you always have it with your account, so that solves the issue about lossing it.  Now of course it can have mistakes happen, and what if the PSN goes down but that is a risk I am okay with.

    This will stop you from selling your games to used stores but also this will make sure people are all spending the same money on the game.  Which will help game companies.  Also this takes away game companies having to spend money on discs, and all the stuff that goes with putting the game out to retailers.  So this should end up allowing the cost of games to lower or at least not go up.  I know there is talks about games being put on the PSN and they will be on there for a lower cost, so this would be a plus.

    I do understand how it sucks for the people who collect the games but maybe game companies can put out stuff for those people, like special posters, or collectible toys.  Which is stuff out there, but maybe we can get other stuff down the road to replace what we don't get for buying a game.

    Now for retailers, I know for the PSP games they are putting out cards to take to PSN and use them.  I assume this will be something that will do if more games become DL only.  I do see this hurting stores that sell used games, but it is all about supply and demand.  If people are not buying into the DL.

  • I agree, I don't want digital distribution to take over. I like owning hard copies. Digital is convenient sometimes but it needs to be balanced with continued distribution through retail outlets.

  • Very good point man. I agree.

  • Download only will probably take a long time to completely go away. You forgot to mention in your blog about re-selling the game. I believe someone already noted that but its worth mentioning again and helps illustrate your point of licensing only not actual ownership. Also download only requires an internet connection. While I know many people have high-speed internet not everybody does. Until everybody as access to high-speed internet it wont be a final decision. Also noted is whether or not you actually download a game or stream it. Many people don't download and entire game. You can do that on the 360 but I have heard that the downloaded version will sometimes be slower than just reading off of a disc. All in all until a console comes out that will not take a hard copy to run we should be free from this issue.

  • edit: above I meant download only will take a long time to come, and hard discs to completely go away

  • Very well written. I agree, I was caught up in the wave of the "Digital Revolution" for a while when I heard about OnLive, but lately I have had major doubts.

    I like to collect games. If a game is download-only, but once you download it it is completely yours, that's fine with me. But when you aren't paying for a game, you're paying for access to the game on a server, or something like that, that worries me.

    I'm not ready for the day that my internet going down means I can't play at all, rather than just can't play online.

  • i rather have a hard copy coz what if my system crashes all the money u wasted in it is gone