Riccitiello: Digital to takeover boxed products in 2010
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Today John Riccitiello has predicted that emerging online-based gaming models will be the dominate force over traditional console based gaming models by next year.
“When people think of games they traditionally think of the Xbox, PlayStation and Wii,” Riccitiello told Reuters in a video interview.
“They forget about all these online services that are out there – subscription, microstransactions, games they find on Facebook or if they go to Pogo. If you add all that stuff up, it’s almost half of the industry now. It’s about 40-45 per cent.
“Next year it’s likely to be a larger share of the total industry and it’ll be bigger than the console games all put together.”
Although he does reassure that packaged gamers aren’t going anywhere.
“We’re the world’s leader in packaged goods games, we make more of them than anybody,” he added. “We’re not suggesting that business is going away but there’s this other thing that’s growing.
“It’s our goal for that business to be as important as, and over time maybe more important than, our packaged goods business.”
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I have to say I am also a physical media person, however there is convenience in buying some software online the way in which the article has suggested.
I find that if I am having trouble finding it in my local area physically then I will look to see if I can find it online, but balk at being offered a download as my only choice. I don't mind downloading a patch, free content to enhance gameplay in an existing game in my collection, or something like a Popcap Game (because until recently I hadn't found them on a CD in a store). But from a company such as EA to start distributing their wares this way I think is a little (dare I say) cheap. Those that consider doing it completely will not get any business from me.
On top of that, what about the length of time it would take to download a game with a truckload of content or gameplay? I'm sorry but the notion is ridiculous and not something I want to see happen. I'd be very disappointed with EA if they did, as they are one of my favourite companies.
I mean, for goodness sakes – I'm only just getting used to getting stuff from iTunes and I don't even have a flipping iPod! XD
I need teh physical media for one big reason: I am a console gamer with little knowledge of my PC. My PC handles whatever it may need. Backing up my stuff included. I can only imagine something awful happening to my account on Gears of War at a level 70-something and having to start over. I would be one of those Gamefly commercials, crashing my tower from a rooftop while screaming obscenities. Farmville is fine for my PC but I am not ready to have all my gaming digital, I just dont have trust built there yet.
I would have to say i'm with you on the industry going completely digital for similiar reasons that you posted, GA. Like you, I prefer physical media over digital because I enjoy building my collection of games. However, at the same time I know that eventually I also have to sell games in my collection to help subsidize the price on newer games coming out so it becomes almost a win/win depending on how you approach it. Digital Media has its place because downloadable content like Xbox Live Arcade, Playstation Network, and The Wii Shop all perform remarkablely well in terms of being available at your finger tips, consolodating space so your place isn't filled up with carts or boxes, and might even give you multiplayer capability that you may not have had before.
There are a few problems I feel Digital Media runs into. One of which, like you mentioned, is loss of memory. Should a PS3, a 360 HD, or even a Wii system crash it can be quite expensive to replace the unit. One example that I've mentioned before is the Wii, which licenses its content to the console directly. Should it crash, the system has to be repaired by Nintendo dDrect or you lose it. PS3 and 360 HDs aren't cheap either with most ranging from anywhere from $50 to $200 or higher. Another concern I've noticed remains with the inability to sell your content like you can with Physical Media. For PC, digital media is a great option because PC games cannot be sold back anyone once you have the key though for consoles on the industrial side, this would hurt gaming chains like gamestop or independent businesses because most make most of their profits on used sales as opposed to little to none with brand new. Also, from the consumer's perspective, this would hurt because most people like to borrow or trade games with their friends so others do not have to go out and buy new titles, saving a little money in the process.
I would be worried about the fate of the game industry should it go all media based because of these factors so I feel they would be hard pressed to go full digital without a great deal of controversy popping up from angry businesses and consumers.
Ya know what I mean?
Here are some Twitter responses:
I started this as a forum topic because I am very curious as to what you all think about digital distribution. In this case, John is not saying that physical media will go away, but I have heard other companies really considering moving completely to digital distribution.
I can say I'm personally wary for a couple of reasons. One, I like building my collection. I like physical media. Second, my IT background comes into play. Harddrives are fragile beasts. I've had to reformat so many for very silly things. But when you reformat you lose everything and have to spend days re-installing software. I really don't look forward to doing that with my games. Will I have to buy multiple drives to expand the space I need to play these titles? Could I burn a copy on a Blu-Ray or DVD rom so that I do have a physical backup?
What are your thoughts and concerns about going to digital distribution? Or are you okay with it? Used to it in other services for your music, books and maybe ready for games to go that way?