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Retailers Not Feeling The Digital Pinch

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By Tom Ivan

January 28, 2010

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Despite the annual predictions at the start of 2009 about the rise of downloadable content and the knock-on effects for boxed games, specialist retailers have told us that they didn’t really feel the digital pinch last year.

“Digital distribution hasn’t affected our business a great deal in 2009,” said Phil Moore, sales director at Grainger Games: “[While] we’re focusing our minds on the opportunity that digital distribution could present [to] retailers, we’ve been more intent on developing and improving our current online proposition.”

Shopto owner Igor Cipolletta agreed: “We’ve seen with PSP Go that the market isn’t ready for a digital-only game console, especially at a price point so close to the PS3.” He also played down the threat of offerings like Microsoft’s Games On Demand service. “DLC for ‘established’ consoles has increased and, in most cases, adds value to existing titles. However, this is in regard to additional content rather than what you would term ‘games on demand’, which gamers perceive as being overpriced compared to physical media and which cannot be traded in or sold once finished with.”

HMV was similarly straightforward about 2009, with spokesperson Gennaro Castaldo noting that digital distribution “didn’t have any major effect” on its business. “Like all parties in the games business, we know it’s gradually coming and are working on laying foundations to prepare for this. HMV recently acquired 50 per cent of digital services provider 7digital, which will give us greater understanding and expertise and will, hopefully, enable us to build a compelling platform that will also extend to games.”

Piers Harding-Rolls, head of games at media analyst Screen Digest, commented: “It’s going to be a slow transition. In terms of console-specific digital games, there’s been something of a retreat from the retail-equivalent downloads, and now most console download titles are made up of expansion packs and arcade download games. Spend on those types of products is increasingly strong, but it’s important to note that it’s nowhere near retail levels, with something like a single-digit percentage slice of the market. Certainly throughout 2009, digital distribution hasn’t had much impact on the sales of digital media.”

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