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The Digital Distribution of Video Games


is the age of physical media coming to
an end hi I’m Rebecca Brayton and
welcome to watchmojo.com our host Mike
Patel got the chance to speak with
industry analyst Jesse did Nick about
the digital distribution of video games
his digital distribution going to be a
game changer I think it already is I
think digital distribution already is my
electronic arts have come out and said
that digital sales are now comprising of
I think they said something like thirty
five percent of their of their revenue
or it’s going to be there and digital
being not just digital xbox live but
obviously social gaming you know they
made their playfish acquisition facebook
games all those different aspects are
considered digital games that’s
happening now how do you feel about the
PSP go and it’s model of total digital
distribution ten years from now when the
industry is digital we are going to look
back at the PSP go as the first console
to really have the gonads to make a
product like that and relate to the
market I don’t think it’s going to be
commercially successful the PSP go I
really don’t but I don’t think that’s
the point the problem with Sony is that
they always seem to release systems
ahead of their time like the ps3
powerful as hell maybe that was a
powerful system but it costs you know
600 700 dollars now it’s a reasonably
priced and our seam sales do you see a
future for brick-and-mortar stores or do
you think it’s going to go purely
digital distribution will brick and
mortar disappear no there will always be
a place in brick and mortar and if you
want to look at an example of what Apple
and the ipod did to music I mean put
retailers like Sam Goody the whole
musicland branch out of business but
best buy still sells music CDs so does
walmart sort of target so there’s still
a market even though we can all admit
music at this point is all digital
there’s still a market in brick and
mortar and that’s how I think brick and
mortar will survive through digital
distribution how attached are consumers
to having a physical copy of their game
and an actual disc to put on the shelf
when you buy a package good product not
just you against anything there’s some
type of residual value there you could
trade it in you can put on craigslist or
ebay or trading in 2 eb games digital
once you buy there’s no value there that
does pose a very interesting question in
terms of our consumers willing to give
up physical products it’s going to be
tough it was tough for music it really
was I took almost so good seven eight
years before the industry transition
because people did not want to give up
the actual physical packaging and it has
an aesthetic appeal here’s a good
example books books
slowly going digital as well I hope they
don’t but you walk into somebody’s house
and they have a library I mean it just
looks impressive you need to see you
know thousands of books on a wall I mean
it has aesthetic appeal as well then
that’s why I say retail will always be
around for video games and video games
will never go completely digital
there’ll always be some type of physical
demand and one of the reasons is because
the aesthetic purposes of it
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