Game Group: Our Customers Want Physical Media

We want to bring online and retail together

Posted by Staff
Game Group: Our Customers Want Physical Media
Ian Shepherd,CEO of the Game Group of retailers, which recently announced that it would be shutting 85 stores, maintains that, "A customer wants to own a physical product. All the surveys tell us that – boxed product will be here for a long time."

Speaking to MCV, Shepherd - whose retail group makes significant revenue from pre-owned games, stated that, "I am deeply conflicted over the digital download space. On the one hand I look at the industry and think yes, it’s overblown as a concept. The notion we will switch overnight to a market focused on digital is clearly farfetched.

"The flipside of it is that digital is an important part of the industry, it’s growing and is genuinely exciting. Is digital a big cloud on the horizon for GAME Group? That’s not the case at all. When industries go online, offering goods in that space is still retailing – you’re just doing it in a different place."

What do you reckon? Let your voice be heard in the Comments below.

Comments

irritant 30 Sep 2010 09:38
1/6
Online distribution is going to get bigger and bigger. The console creators will always control the electronic distribution of software for their own platforms (as they have the physical manufacture of boxed products) so Game will lose out massively when it really starts to take off on consoles.

As for PC games, there are too many well established quality distribution services out there to try and compete seriously now. Any brick retailer that tries to set up an electronic retail service is really going to have to offer developers huge incentives over using existing services such as Steam.
irritant 30 Sep 2010 09:42
2/6
In addition to the above:
I couldn't give a toss about a boxed product if the electronic alternative can offer a discount for the sacrifice of the boxed product and flexibility to allow me to play the game on different hardware in case of problems.

For example - Steam is perfect, for me, as it allows me to install the games onto as many computers as I like, I don't have to back the games up as I can re-download as many times as I like (although it does offer the facility to back games up too).

WiiWare/DSiWare however are pretty poor in comparison in my opinion. If you lose/damage/upgrade your hardware, all downloaded games are stuck on the old system and you cannot recover them. Not very user friendly. I really hope they are making improvements for the 3DS.
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ghoti 30 Sep 2010 09:46
3/6
Brick and Mortar Games Retailer Doesn't Understand Selection Bias

More at 11.
tyrion 30 Sep 2010 13:39
4/6
Online distribution is going to keep growing. However, until large markets like the UK and USA and emerging markets like South America and Eastern Europe have broadband connections as fast as the best in Europe and Asia across their whole territory then the hardware won't be download only. Certainly not if we're talking about downloading a whole Blu-ray game.

I can't see the PS4 or Xbox 720 coming in two SKUs, download only in Europe and Asia and disc-based everywhere else.

Maybe Gaikai and OnLive can take some market share in the countries with faster broadband. Or maybe games that make heavy use of streaming to minimise the download lag before you can play them will be an interim measure.

For now, Sony, Nintendo and Microsoft need retail (bricks and mortar or online) to sell their hardware. You can't yet download a PS3 or a 360 controller. This means they won't piss off retail by undercutting them on digital download prices until the happy future of universal super-fast networks arrives.
deleted 30 Sep 2010 18:23
5/6
@irritant

if would we be able to have a family of Nextboxes one in the living room and one in the bedroom and one in the kids room and allow me to play my digital media from anywhere I sign my profile in, but its also got to allow my kids sub accounts to sign in too, then I will most deffo allow disc to go to the grave.

it would also have to allow my account and my sub accounts sign in at the same time and game at the same time from different machines not necessarily the same game, basically I want to do what i do with my xbox now if the disc is taken away, I would not want to have to buy a copy for each xbox and a copy for each profile, if i want to play modern warfare in the living room while my son plays sega all star racing in his room, then right now i can do that, but with a steam type account that could not happen unless my sons profile owns sonic and my profile owns modern warfare, say we wanted to swap games over then the problems start.
Joe McInally 1 Oct 2010 07:34
6/6
"When industries go online, offering goods in that space is still retailing – you’re just doing it in a different place."

But it won't be Game doing the retailing....Sony, & Microsoft will.
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