DA
06-22-2009, 12:03 PM
The last time GameStop decided to talk about digital distribution, they predicted that full games wouldn't be digitally distributed until roughly 2020. Now they're back, citing a new study that says that digital distribution won't be an "addressable market" until around 2014.
Calling GameStop's recent study "the most thorough study to date on [the capability of digital distribution]," Sterne Agee analyst Avind Bhati told IndustryGamers that GameStop believes only 25 percent of the population will have access to the technology required to download full games. And even then, GameStop believes users will still face issues of price and storage capacity.
Meanwhile, "Management... feels that digital growth and brick and mortar growth can co-exist," said Bhatia.
"Through their brick and mortar locations, the company can help facilitate and capitalize off digital. Overall, management did not seem at all concerned about the near-term threat but instead is looking at ways to potentially profit from digital."
Sony took the most recent step in the push toward digital distribution with the announcement of the PSP Go, which lacks the ability to play UMDs. Microsoft will also start up its Games on Demand service soon, which will allow Xbox 360 users to purchase and download titles such as Mass Effect and Assassin's Creed.
All that, and it's not even 2010 yet.
Calling GameStop's recent study "the most thorough study to date on [the capability of digital distribution]," Sterne Agee analyst Avind Bhati told IndustryGamers that GameStop believes only 25 percent of the population will have access to the technology required to download full games. And even then, GameStop believes users will still face issues of price and storage capacity.
Meanwhile, "Management... feels that digital growth and brick and mortar growth can co-exist," said Bhatia.
"Through their brick and mortar locations, the company can help facilitate and capitalize off digital. Overall, management did not seem at all concerned about the near-term threat but instead is looking at ways to potentially profit from digital."
Sony took the most recent step in the push toward digital distribution with the announcement of the PSP Go, which lacks the ability to play UMDs. Microsoft will also start up its Games on Demand service soon, which will allow Xbox 360 users to purchase and download titles such as Mass Effect and Assassin's Creed.
All that, and it's not even 2010 yet.