How Much Longer Will Physical Game Distribution Survive?

GamesIndustry is running an interview with Theodore Bergquist, CEO of GamersGate, in which he forecasts the death of physical game distribution in favor of digital methods, perhaps in only a few years. He says, "Look at the music industry, look at 2006 when iTunes went from not being in the top six of sellers — in the same year in December it was top three, and the following year number one. I think digital distribution is absolutely the biggest threat [traditional retailers] can ever have." Rock, Paper, Shotgun spoke with Capcom's Christian Svensson, who insists that developing digital distribution is one of their top priorities, saying Capcom will already "probably do as much digital selling as retail in the current climate." How many of the games you acquire come on physical media these days? At what point will the ease of immediate downloads outweigh a manual and a box to stick on your shelf (if it doesn't already)?

http://games.slashdot.org/games/09/03/05/0655225.shtml

When people get bored of paying £40+ for something they can physically own and touch....

When I can buy a card in a store to use to buy all my games (not a credit card, I mean like the psn points cards)

And when they include manuals in online downloads

I will never switch to all download. Never!

I like adding to my games collection on my shelf.

Also, boxed games have re-sale value.

i will and sometimes do buy small programs that do not cost much without media

BUT when i laying down 60 bucks for a game then yea i want a disk, i have a pretty large collection of old but fun computer games (hell i still have wing commander 2 on 5&1/4, yea i have a drive too) most of my ps1 games, and my most treasured sega genesis carts

also internet speeds, the psp has a what 11mbs connection, which is still 10mbs faster than my internet connection, which may surprise you is a average speed for most people in the world with "broadband" ... yea let me pay you 60 bucks and take a week to download a blu-ray, or even a 8gig dvd

online distribution is already working for a certain crowd, but its not going to replace physical media for a while

Digital distribution is good for retro, indie, and smaller games... That's it.

If I'm paying $60 for something when it's released, I damn well better have something to physically hold and, as Triv said, add to my collection.

Also, if digital distribution was the only method, then you'd have to get that console out every time you wanted to play a specific game. No backwards compatibility! Well, unless you want to buy it again on another console if it's rereleased.

Itunes only flourished because of the Ipod. Online distribution for games has a piece missing to make it so successful....portable, easy, reliable. Also with buying games online for pc...patches are released quicker and easier for retail bought games....except when it's a game off of steam.

If I'm paying money for it, I expect a physical product, plain and simple.

When it's digital, they can start slipping things in, like limited installations, "no resale," and the ever popular "service no longer supported."

Think about it. Microsoft, Sony and Nintendo the sole masters of the pricing structure. Damn that's a scary thought. This will probably be the time when I return to pc to get me some pirated games again. I just cannot financially support such a system.

And you all know that even though this should make distribution much cheaper the prices will be stay up or even be raised because of a world with almost no competition.

I never have been a fan of the digital distribution. I like the downloadble content stuff, but not for actually buying a game. I'd rather deal with just ordering it online and waiting for it in the mail, or heaven forbid I walk into a Gamestop to buy it. It's just like CD's for me. I have to physically have it. You know for a fact the games that are digitally distributed are going to be the same damn price. Games should be at least 15 dollars less with out the physical case and manuals, or cd/dvd/dvd dl/BRD.

It's an idea that will probably never happen, but brick and mortar retailers could still survive if they keep a database of the bigger games and people take their own flash drive, possibly with some kind of security builtin and you pay for the download, it's a way to combine physical and digital distribution in some way in the future, and because developers are whining about the used game market destroying the industry, they will fight to reduce physical products

I want physical Boxes and Manuals. Having them all in some weird grey area consisting of data isn't what I want. Lets say the game company shuts down a few years down the road, and the download disappears? Or lets say your HDD gets fried? Think about it. Also, I don't want to ONLY have to be able to use my credit card on game purchases.

Like everyone has said before me, if I'm going to buy a game, it'll be bought from the store or ordered online and it'll come to me on physical media, ie boxed with disc/cartridge and manual. Downloadable content like some small games and and stuff is okay but not for big full featured games.

personally i like to knnow that i can install the game when ever i feel like it, physical media all the way for me.

Yeah, it's nice to be able to put in a game and play it off of a disc instead of wasting you're whole hard drive for 3 or 4 games. I've purchased smaller games on the PS store, but with a 40GB PS3 and a PSP with a 4GB ms, it gets a little frustrating when I want to put a movie on my PSP and I have to delete a game to do it. Then I have to re-download it (because you can't transfer a game from PS3 to PSP unless you're connected to the internet).

They really want to eliminate the secondhand market and remove merchants from the picture.
As soon as they can leverage 1 million 10gig (on average) downloads across the world to deliver a product they will cut out physical media entirely.