[url=http://www.gamesindustry.biz/articles/2012-02-20-jagex-physical-games-retail-10-years-from-extinction][img]http://dl.dropbox.com/u/12875849/jotain/gamesindustrybiz.gif[/img][/url]
[release]Jagex CEO Mark Gerhard believes that the decline and eventual closure of high-street retailer The Game Group is now inevitable.
Speaking as part of an expert panel at the BAFTA Question Time event, sponsored by GamesIndustry.biz, Gerhard stated that the efficiency with which the internet serves the modern consumer's needs - easy access to a wide range of content at lower prices - has started a process that will eventually eradicate physical retail for games.
"I think, 10 years out from now, we'll be talking about [physical] retail nostalgically, as a museum piece," he said. "I don't think there's much there that would give it a second life."
Physical retail, Gerhard explained, is part of a system that takes "huge chunks of margin" from developers, facilitating the decline of the independent development sector.
"That all erodes the economics for developers being able to make money," he continued. "They take a chunk - say 20 or 30 per cent - the publishers take a bit, and after inflation it's no wonder that the independent games industry isn't alive and vibrant, because they're not making any money."
[quote="Mark Gerhard, Jagex"]I think, 10 years out from now, we'll be talking about [physical] retail nostalgically, as a museum piece[/quote]
"[Developers'] response is almost desperation. 'We're going to go straight to the customer. We're going to go online. We're going to bypass the sequence that's taking so much from us...' I recognise that it's sad, but I think it's a fait accompli."
"It's sad to see an institution decline, but the writing has been on the wall for quite some time - the internet didn't happen yesterday... People are still playing games. They're still doing business; they're just doing it in a different place... If you don't adapt you die. It's as simple as that."
Jason Kingsley, owner of the UK studio Rebellion, compared watching the rapid decline of companies like HMV and Game to studying a mass extinction on the fossil record. He admitted to always being puzzled that the games industry sold data, "on bits of plastic wrapped in cardboard and the cellophane and put on the back of lorries."
"I always thought data should go down wires and fibre optic cables," he said. "It's a reforming of an industry, and a refocusing away from selling data - which is more easily distributed in other ways - to offer a very different kind of service."
UKIE's Jo Twist warned the other panelists not to "undersell" the importance of a one-to-one retail experience with engaged sales staff. To those unfamiliar with gaming or shopping for somebody else it can be the only way to make an informed purchase.
However, Kingsley disagreed, arguing that personal recommendations through social networks already provide the same service in a more meaningful way.
Frontier Developments' David Braben went further, saying that major chains like Game and HMV never offered the level of service Twist described, and were instrumental in the decline of the independent retailers that once did.
"In a sense, they're just getting a taste of that medicine," he said. However, Braben also added that internet speeds in the UK weren't yet capable of supporting a full scale shift to digital retail for "the next year or two."
This will give physical retailers some time to find an effective way of serving the needs of consumers, and potentially allow a more passionate independent retail sector to regain some of the market.
Nevertheless, Braben echoed Gerhard's belief that, in 10 year's time, it would be "hard to imagine" any games being sold in "shrink-wrapped retail."
"Whilst I am tremendously sympathetic to all of those that work in the shops, the fundamental problem is that they've got to look at their business to reposition it anyway - that's irrespective of whether it's a good or bad thing."[/release]
In my time, boy, we stored our games on CDs!
The rise of steam assures this.
Ever since I downloaded steam for the first time 5 years ago, I have only bought a single physical game.
I say 5. At least vast majority of it.
[QUOTE=Sobotnik;34816178]The rise of steam assures this.
Ever since I downloaded steam for the first time 5 years ago, I have only bought a single physical game.[/QUOTE]
The last physical I bought was BF3, since it was the limited edition
All of my other physicals are Valve games
I doubt console games will stop being retail.
Even console games?
The good thing about this is that companies like Game will have huge difficulty starting up with platforms like Steam dominating - competition is good I understand but people like Game don't deserve to have any power over the digital distrubution, they'd be like EA with origin except 10x worse.
I'd have no problem with this but as it stands not everyone's internet connection is fast enough to make it a viable option. For me it's a lot quicker to just go into town and buy a game.
I'm still buying all my AAA games physically. I can't justify paying 20-40% more just to get it 2 days earlier especially when it doesn't come with a nice looking case and takes forever to download.
Unless I get a better alternative to 1.5 Mb DSL in the next 10 years I hope not.
[QUOTE=Sobotnik;34816178]The rise of steam assures this.
Ever since I downloaded steam for the first time 5 years ago, I have only bought a single physical game.[/QUOTE]
I think I bought a few more than that, but then sold them back and bought them on steam, or at least plan to do so when I get some money.
I think the last PC game I bought in a shop was HL2.
PC titles maybe, but I can't imagine physical console media sales going down unless the next generation systems have built-in game downloading, which would be pretty cool.
Last thing I bought retail was Battlefield 3: Limited Edition v:v:v
I still buy retail games if they're for my PS3, or have a super cool collectable in it, like Dead Rising 2's Zombrex pen, or Skyrim's map.
I haven't bought a PC game retail in a very long time, mainly because the only thing that shops are stocking is WoW, old games that most people already have regardless and The Sims, I literally went to about 6 games shops in 3 cities to try and find Anno 2070 and there wasn't a single copy so I ended up getting it off of steam and waiting until midnight because PlusNet are a fucking stupid ISP, I can't see console gaming changing from a retail format either considering the big attraction is still buy game, put disk in, go not wait 2 hours for your game to download.
[QUOTE=Chrille;34816228]Even console games?[/QUOTE]
Well, it's not that much of a far-fetched idea that, in a future console, you'll be able to buy and download games into it.
[QUOTE=Raidyr;34816342]PC titles maybe, but I can't imagine physical console media sales going down unless the next generation systems have built-in game downloading, which would be pretty cool.[/QUOTE]
They almost certainly will, but they'll also support physical media.
But if we have to use proprietary hard drives like in the xbox 360 I don't see it catching on.
i still buy retail games every now and then, it's nice to have the box. too bad it's just not worth paying £5-£10 on travel to buy a game in a store when i can just order it online for free
For PC games? Totally. Steam just keeps growing and growing.
Console games? Fuck that.
Last time I bought a physical PC title was way back in 97.
I buy a physical version when the game is new and not on sale on Steam. As long as downloadable copies aren't significantly cheaper than physical ones I have no reason not to buy physicals.
The PC market is already moving fast towards the dominance of digital distribution, however consoles are probably going to hold back for a while. But come think of it, in 10 years consoles will hopefully already have advanced by 2 generations, so anything's possible by then.
It looks inevitable but I hope this doesn't really happen.
My issue with digitla distribution is that if one company folds (not going to happen with steam, but will inevitably happen at some point if other companies begin launching their own platforms), then you're suddenly left with absolutely nothing. £100 of games can disappear in an instant. I kind of like being old fashioned and having a physical copy.
I buy physical copies because it's a lot cheaper (in Russia)
Well, I buy physical copies when I see some sorts of packs (for example Crysis Maximum Edition.) or when they happen to be on sale in some shop. (I mean, come on. Battlefield Bad Company 2 for 22 polish monies? Fuck yes.)
[QUOTE=Lhuth;34816820]It looks inevitable but I hope this doesn't really happen.
My issue with digitla distribution is that if one company folds (not going to happen with steam, but will inevitably happen at some point if other companies begin launching their own platforms), then you're suddenly left with absolutely nothing. £100 of games can disappear in an instant. I kind of like being old fashioned and having a physical copy.[/QUOTE]
I'm pretty sure Gabe or someone else in Valve said that if they ever go bankrupt, they will release some sort of program that opens up Steam so you can at least play all of your Valve games, even without Steam servers.
It's a shame.
Not that this is relevant, but I didn't have an internet connection on my computer before my 14th birthday so physical copies were the only way for me to play something. Though Steam was still Gabes wet dream when I was 14, so it's not like there were many options available back then.
Though this problem isn't very relevant in this day and age, because kids from 5-year up have internet.
Point being, if your parents don't let you go to the net, you're fucked.
I just kinda like having a physical copy in my hands
I bought the Diablo 2 Battle Chest a while back because I liked the box
The game is good too by the way
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