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The Problem with Digital Distribution

Written by on Jan 30, 2011

Picture of Onlive Streaming Games Service

I love the Xbox Live Arcade marketplace, because it’s so convenient to instantly download a game and forever have it stored on my hard drive where I can access it at any moment. I like download games in general, but I am especially fond of XBLA and XBLIG, because I can easily copy the game over to a flash drive and use it on another console. I like that download games tend to be smaller, cheaper games that would be inappropriate retail releases but work well as a digitally distributed title. What scares me about digital distribution is the trend toward all games being released through this route. With the popularity of services like Steam and the emergence of Onlive, digital distribution is being pushed harder than ever.

It makes perfect sense for publishers; they don’t have to manufacture discs or packaging, and the game is harder to pirate. They save money, sell more legitimate games, and pass the savings on to… well, nobody, actually. Newer releases cost just as much on Steam, if not more than in retail outlets. Sure, you get the game immediately and don’t have to bother with disc swapping, but at what cost? Once you buy a digitally distributed game, you’re stuck with it. Games have never really been sold to consumers, they are merely licensed. This isn’t a huge deal with physical copies of games, because you still own the disc and can sell it if you don’t want it. With digitally distributed games, there is no way to sell your copy. Every purchase is permanent, and you have to make absolutely sure you want the game you’re buying.

With cheaper arcade games, this isn’t too much of an issue, because you can write it off as a pricey rental. As companies push for digital sales of retail games, and the price of arcade games slowly creeps up, bad digital purchases get all the more devastating. I have a tendency to sell most of the games I buy, because I will more than likely never play the game again. I know some people like to keep all of the games they buy for nostalgic sake, but you have to admit there are some games that just suck. I know I’ve bought quite a few awful WiiWare games that I’m stuck with now. A solely digital distribution model would make me nervous to buy anything, because I know I’d have to keep it.

At the risk of letting my true nerd form shine through, I really like to have the physical copy and packaging of a video game. I like to admire my collection, smell the discs, and rub the booklets all over my body… Okay, so I don’t actually do that, but I still like having the physical media, because it feels like I really own the game. The case artwork and manual are just as much a part of the experience as the data stored on the disc, and believe it or not, I actually do read parts of the manual sometimes.

I don’t mean to suggestion that digital distribution is always a bad thing. It was a necessary move for the music industry, for example. I have no problem dropping 99 cents for a song, and I’d never buy a physical CD again, because I’d just rip it for the mp3s, anyway. It becomes a problem, though, when the asking price gets out of hand. I’m not about to throw down fifty bucks for something that I only kind of own and can’t get rid of. Unfortunately, digital distribution is the way everything is headed. It’ll be a sad day when consoles finally do make the switch to download games only and may be the day I give up on the industry.

Responses to The Problem with Digital Distribution
  1. avatar
    Joe on Jan 30, 2011
    Thanks, Eeyore! That's a fairly fatalistic point of view. Overall, I'm for it. I love my physical game collection, but I'm starting to love my digital copies just as much. The thing I'll miss about 100% digital distribution is being able to go to a store to peruse games. I love being able to have digital game saves, in case of accident. They just announced a "PSN cloud" to save games online. I could have used that when I upgraded my hard drive and lost all my "protected" save data.

    I think that it is still a way off since GameStop is such a huge part of the industry and deal 99% in physical media and digital distribution cuts them out of the loop. I'm totally ok with that part of it. I hope that they can coincide the way DVDs and digital movies do. Can't we all be friends?
  2. avatar
    JR on Jan 30, 2011
    I didn't say all digitally distributed games are bad. In fact I love my xbla and xblig collection as much if not more than my retail collection. What scares me is when full retail games turn digital only. It will very probably happen eventually. Publishers don't care if Gamestop goes under, in fact it would save them a ton of money not just because they cut out the middle man, but also because they cut out the used game sales.
  3. avatar
    Clark on Jan 30, 2011
    Joe, the article doesn't suggest that all things digital are bad. Of course digital save files are a good thing, which we've had for quite a while now. The problem is when the game itself goes digital. Companies will still want to charge $50 to $60 for a game. I really don't see them lowering the price just because they managed to cut out printing costs. Isn't Ubisoft shipping games without booklets now, and yet where are the savings for the consumer? While Microsoft and Sony occasionally have deals that drop the price of downloadable content, Nintendo never does, and the sales are only temporary, anyway. No more bargain hunting!

    Another concern about a digital-only model is the fact that, at any time, the company could pull the plug on its service, and you'd lose all your games. I'm surprised JR left this out, because I remember reading it in his original essay about this on his blog. The point, though, is that a company would never come into your house and ask you to give back all the discs that you bought, but they could easily take back the digital rights you had to play them.

    Last year, Microsoft decided to end all online support for original Xbox games. Okay, not a big deal. All the indie games on the 360 require being connected to the Internet, though, or you can't play them, regardless if they are online or not. If Microsoft ends 360 support when its new console comes out, does that mean we've lost access to all the indie games we bought from this generation? Something to think about...
  4. avatar
    Joe on Jan 30, 2011
    I was referring to "giving up on the industry" as the depressing comment. I imagine that if consoles want to switch all the way over to DD, they'll try to take on a model much more similar to the very successful Steam. Which means they'd have to start including sales. As far as the servers going away and digital rights being revoked because the developer says so, I see it as the dark side of the coin.

    Companies have been ending support of older media for a long time now, no surprise there, but throwing the online sign-in is a new wrench, which I'm a little anxious about. When it comes to what will be lost between this console gen and the next, I think we'll have a really good idea when we see what happens with the PSP2. How the NGP plays with PSP digital games and the 3DS with DSi downloads will set the precedent.
  5. avatar
    Clark on Jan 30, 2011
    I hope they take Steam as an example, but I always get the impression console manufacturers feel like they can play by their own rules. I've heard, though, that Nintendo will let you transfer your DSiWare games to the 3DS, which is really nice. I hope they'll do the same for Wii 2.
  6. avatar
    Joe on Jan 31, 2011
    I get the same feeling about console companies. The thing that console companies have in their favor is that their market has a device that does nothing besides what they want it to do, and well Steam doesn't have that. Do you think that if the gaming industry goes all digital that more people will switch to PC gaming? I mean, they're way ahead there already, plus if consoles become nothing more than a box that downloads things from brand specific online store, wouldn't people prefer to go with the platform that has the most crossover? I can already just hook my laptop to my TV and my PS3 six-axis to my laptop to play any steam game already. hmmm...makes me wonder

    @JR - I agree that publishers would be more than happy to get GameStop's grubby hands out of their pockets, but not until DD becomes the main way to sell the big games console games. COD BO had the biggest media opening release ever. How much of that would have not happened without GameStop?
  7. avatar
    Clark on Feb 5, 2011
    Console manufacturers have their hands in so many unique IPs, though, that they'll still do well even when their business models aren't much different than the PC.

    Now that consoles are catering so much towards the non-gamer crowd, though, an online-only model doesn't make sense. Moms aren't going to stumble across a budget dance game in Nintendo's shop channel and snatch it right up, but they'll certainly do so if they see it in Toys R Us or Kmart.
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