A new games distribution model

March 24th, 2009

I just posted on the 1Up forums my ideas for a new model for games distribution that might help the industry escape the wrath of economic recession. I thought I should repost it here to direct readers’ attention toward it and get some feedback.

I’ve been listening to lots of discussion about the problems the industry faces moving deeper into recession with the current software distribution model. I have some ideas and want to get everyone’s feedback so here it goes.

I’m admittedly on the outside of the industry, but some of the major problems as I perceive them are

1. Lack of retail shelf space for software and difficulties negotiating with retailers
2. Inability to abandon retail distribution due to lack of broadband in many areas and for fear of alienating retailers
3. Publisher perception that used game sales undercut publisher and developer profits

Here is a single solution that, while incomplete, attempts to address these problems: A fully digital distribution model that allows for purchase of software from home via the Internet or at the retail store by way of software kiosks. The DSi and, if the rumors are correct, the next PSP may already be prepared to support such a model. Gamers will still be able to purchase games at the kiosk which will allow publishers to reach gamers that do not have access to the Internet connection necessary to download a large game. This will also allow retailers to share in software revenue compelling them to continue stocking the hardware. Shelf space is no longer an issue. Every store can carry every available title. Gamers with broadband will benefit by not having to travel in order to purchase games; every game will be available online. Used games will be a thing of the past as there will be no physical product which can be resold based on current digital purchase licensing arrangements. (Honestly, as a consumer, I find this part troubling, but I also see it as an inevitable reality.)

Any thoughts?

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Tags: 1Up, digital distribution, distribution, games, Software

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