On Acceptance and Acquiescence

2009 November 13
by Christopher

Remember when I said that it was hard to find a meaningful news topic to use for these posts that didn’t have anything to do with Modern Warfare 2? That was before the game came out, now that the Dark Lord has risen it seems like every Video Game related entity is consumed with this game. Don’t get me wrong, it’s a fun game. But when I am sick of the over-saturation, a card carrying member of the Modern Warfare 2 hype machine, clearly we have a problem among the tubes of the Internet. Thankfully the week was not entirely devoid of news not related to “the largest entertainment launch of all time.” I suppose the only other hot topic worth discussing besides that game is the state of Downloadable Content, right? After all, depending on who you talk to it is the future of the industry.

Around the end of June a news bit popped up referencing an IndustryGamers report citing Sterne Agee analyst Arvind Bhatia stating that “[GameStop management did not seem at all concerned about the near-term threat but instead is looking at ways to potentially profit from digital.” Additionally, “an addressable market will not exist until 2014.” If I understand this right, GameStop is a brick-and-mortar business that according to its own research in June is not threatened by the growth of digital downloads within their base of consumers? Granted, the high speed infrastructure of this country needs a serious upgrade before digital distribution can have a significant impact on all forms of media. Sure, an exclusive mp3 on iTunes is one thing, but if Microsoft is going to excel with their 1080p streaming service, they are going to need a lot more customers than what they currently have. All of these features are nice, but can it have a positive impact on a companies bottom line if the market for these services isn’t large enough to financially break even or eventually turn a profit?

Back to the focus of this post, GameStop. In June, digital distribution is of no concern for at least the next 5 years. In October, company executives started an about face on that detailing a three-point plan for implementing digital distribution in their stores. According to IndustryGamers, “GameStop’s three main goals to adapt included increasing in-store sales of point cards for online purchases, expanding its digital distribution of PC and casual titles via its website and making a strategic investment in the space or acquiring an online entity specializing in digital distribution.” If that doesn’t have you convinced, a story from Variety released yesterday states that GameStop plans “to install kiosks in its stores next year, letting people buy digital add-ons for titles as they buy the retail game.” Depending on your view of how GameStop conducts themselves, rapture may be upon us all.

Assuming other establishments hop on this bandwagon, could we see the proliferation of digital distribution trickle down to the “mom and pop” stores across the country? Assuming larger games start to become released as strings of 1s and 0s instead of on a piece of plastic, is that really a viable business model for these businesses? If this is the trend breaking street dates will become less of an issue for publishers. Which is nice.

Regarding the potential of GameStop as a means to my digitally distributed goods, whenever I am forced to frequent this particular retailer I typically walk in with my head down and try to avoid any up-selling or pitches of special deals the store is currently offering. I don’t see my behavior changing if I decided to go to GameStop to pick up the next map pack for Modern Warfare 2. As is, GameStop frequently offers exclusive DLC to customers for preordering games and depending on the quality of the game and the proposed DLC it has been an effective magnet for indecisive consumers. But the idea of going to a store for a download code only to take it home and resume the typical downloading process feels rather cumbersome. Then again, that’s the point right? This method would feel awkward and clunky for someone like me. I’m the consumer that is familiar with Steam, I have an Amazon Prime account, (eventually) I use Netflix on my Xbox 360 and my PlayStation 3. It isn’t for me.

I find it hard to look at these business decisions from the eyes of a less informed consumer. I don’t want to use words like “hardcore” and “casual” because those adjectives don’t clearly define the type of consumer that either I or my less enthusiastic coworkers fall into. But for them, this may open up a world of content that they never knew existed and I really can’t fault GameStop for at least trying to embrace the future. My only concern is that this might be the start of a digital turf war. If GameStop is serious about making an impact on digital distribution, there may be a whole new battle over exclusive content and we’ve seen how quickly PC gamers can turn on a company if their business decisions do not mesh with accepted practices. Rapture indeed.

Here’s the thing, if GameStop can do this right, if they can increase the market for digitally distributed goods without exploiting their consumers or the video games market too obscenely then this is great news. If this is GameStop looking to capitalize on the next big thing by throwing money around until something works then I’d rather they stick to ripping us off with their ridiculous preorder schemes. Digital distribution is the future, and if GameStop and associates cannot help, then they can continue to selling points for Xbox Marketplace, Wii Ware and PSN. Now is not the time to put forth a lackluster effort. Make a difference or move out of the way.

Also, move your preferred Internet Browser to Talking About Games.

One Response leave one →
  1. 2009 November 13

    Interesting.
    Game On either way.

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