The Downsides to Digital Distribution

The gaming industry's ongoing shift from physical media to direct downloads has made buying new titles much more convenient, and in some cases cheaper. However, as this article in The Escapist notes, there are downsides as well, such as an increased dependence on console makers and the inability to sell your used games. Quoting:
"Microsoft and Sony might end up charging publishers an arm and a leg to enable game downloads, especially as they gain more and more control over distribution. Think about it: What if, 10 years from now, 50 percent of software sales for Microsoft's latest console come through Xbox Live? Or, in an even scarier scenario for consumers, what if there is no physical media drive at all, and everything goes through Xbox Live? Sony's marriage to the Blu-ray format ensures its continued support of game discs, but Microsoft has no such restrictions. They could cut console production costs and take control over the entire supply chain in one fell swoop. There would be zero room for publishers to negotiate anything in such a de facto monopoly. The perfect comparison is Wal-Mart. As the world's largest retailer, Wal-Mart is able to demand pretty much whatever it wants of suppliers because it grants access to such large numbers of consumers."

http://games.slashdot.org/story/09/0...l-Distribution

So what if Wal-Mart Demanded Microsoft to sale games on disks so they can sell them in stores. Selling Games in stores means walmart makes more money.

Who would win Wal-Mart or Microsoft

Quote:

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Originally Posted by chuggman

So what if Wal-Mart Demanded Microsoft to sale games on disks so they can sell them in stores.

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More to the point, GameSpot juggernaut.
Store will stop carrying the hardware, and/or greatly reduce stock, if they can't get a cut of software sales. The end result will be a rollback to 1977, when videogame machines were sold in dedicated television shops, the back of a Sears, or Radio Shack, and pretty much nowhere else.

Oh, and hardware costs will increase dramatically. The few remaining retailers are going to want a bigger cut.

I buy the games i love so i can keep them on the shelf whenever i need them. Cratridge or disc, if i have no physical copy of a game, no need to play games anymore because the appreciation for the art is gone.

Invite friends over to look at my list of games on a screen is not as stimulating.Especially since there is no box/cover/manual.

Digital distribution sounds good on the face, however it will cut hundreds of thousands of jobs, replace physical ownership with licenses to use the product, and may damn well embolden the terrorists to buy all of the used discs and cartridges from all stores thus driving used game sales over the ridiculous level.

I'm not saying don't go digi distro, but if you're to do it please consider the destruction that may result in the wake.

P.S. (should be obvious) A good artist cares more about making people happy than making money. Lets not forget that video games are an art form.;)

still irritates me that people keep calling direct download digital distribution

I guess my SNES had opamps and oscillators in the cart. This whole new idea of distributing digital software for these newfangled digital computers just confuses me

and here i was surfing the internet on my moog