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Digital market 'will overtake' retail, claims TimeGate

The digital market for games is quickly closing the gap on retail and we'll see downloadable software overtaking retail within "a couple of years," TimeGate CEO Adel Chaveleh has told VideoGamer.com.

In an interview with VideoGamer.com, the Section 8: Prejudice developer revealed he believes the retail market is too difficult for most publishers to compete in.

"It's a tough market," he said, "and it's fortified. To go in and compete at retail, you either have to be one of those that are firmly entrenched in retail or you've got to able to go buy your way in. If you draw up some analogies to the music industry, a few years back - not even that long ago - we're already accepting that the music industry is digital. You want music? Go buy it on iTunes or every other outlet that's out there now."

He added: "The gaming market will evolve that way, too.

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DanSolo2873d ago

I wouldn't have a problem with that if it didn't just end up another way for us to pay more...

Take Mass Effect 2 on PSN....£47.99 to download... WTF is that all about?
I can buy it at GAME for £39.99 with their overheads, and I can buy it from www.shopto.net for £35.99 with free delivery...

How can they possibly charge more to sell it digitally?
No overheads; no storage, no salespeople to pay, no transportation costs, and no delivery fees... yet it costs £12 more...

Fucking rip off!

JsonHenry2873d ago

Agree 100% with you man!

I think that is why STEAM has been so successful as a DD program. Typically (though not always) STEAM is cheaper than the brick and mortar stores. And usually by a decent amount.

However, there is something to be said for actually owning a physical copy of something.

Christopher2873d ago (Edited 2873d ago )

In quantity of software sold, yes. Especially since they take into account smart phone digital software into their equation.

In net profit of software sold, no. Hard media is still where the most profit is located.

What the digital market has allowed at this time is for smaller, but not Indie, development companies to produce lower production cost games and distribute them on a wide number of platforms.

paradigmfellow2873d ago

No it will not overtake it.

theonlylolking2873d ago

It WILL over take it but not soon. I say in 5-10 years maybe more most stuff wont be bought at retail.

JsonHenry2873d ago

I've purchased nothing but digital products on my PC for over a year now. For me it has already overtaken physical media.

And as far as my consoles go I almost never buy a game for them, I only rent. Actually, the ONLY games I buy for the consoles are PSN/XLArcade games because I can't rent them. And again, those titles are digital as well.

It will happen.

hoops2873d ago

They said the same thing of MP3's and CD's........

Mr Tretton2872d ago

CD sales HAVE plummeted and MP3s skyrocketed

paradigmfellow2872d ago

I only buy physical games. The day that physical games are gone is the day I will stop being a gamer.

Morbius4202872d ago

Me too except I'll still play games just not new ones.

+ Show (1) more replyLast reply 2872d ago
Stealth20k2873d ago (Edited 2873d ago )

lol no it will not espcially when more that 75 percent of these comapnies revenue is physical

and really what does this guy know?

Ares84PS32873d ago

Sadly, eventually it will happen. But it will be many years. Internet speeds have to be much faster. Storage space have to be in the hundreds of TB.

That day, when every console will have DLC only games will be the day when you loose actuall ownership over your games.

sp1deynut2873d ago (Edited 2873d ago )

No. But it is obviously the most effective way to combat lost revenue from used game sales, so it will continue to be a mainstay in gaming. No matter how many used copies of games like COD, Borderlands, or Mass Effect are sold...of which ZERO $$ goes to the devs/publishers...the only way to continue enjoying your experience with those games is through retail DLC. I think Bethesda and Rockstar will finally catch on too, and no longer produce disc-based add-ons...at least not without 1-use codes, like Gearbox/2k did with Borderlands GOTY. I got a used copy of Fallout 3 GOTY at GameStop, installed the extra content, and returned it for a refund...then bought the original F3 used for only $15. By contrast, the DLC for Borderlands GOTY was all on the disc...but only accessible with the 1-use codes provided on a card.
My biggest fear is that ALL games will soon have 1-use codes, thus making used console games worthless, just like on PC.

DanSolo2873d ago

lol I like that idea of getting the GOTY edition to get the content and then getting a refund... good thinking!

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