Retailers still have the edge despite growth of digital distribution - HMV

Tim Ellis, head of games for HMV, has told that high street retailers still have an advantage over digital distributors when it comes to benefits for publishers and platform holders.

Speaking in an interview at the UK launch of the Nintendo Wii last week, Ellis said, "There's a lot of doom-mongering about downloading, but downloading audio has been big for quite a long time, and we're selling more music units than ever.

"You've got to be rational about it and think, 'Where will we be in five years' time?'. Yes, downloading will be an element of it, but can Microsoft do without retail partners? Can Nintendo? I don't think they really can, because they wouldn't get the standout," he continued.

"You need standout on the high street to get that perception out. If you're just relying on people sitting in bedrooms to buy your product, you're not going to get that excitement factor."

According to Ellis, HMV is "only seeing growth" for the games market at present - although, he conceded, things could change in the long term.

"In ten or fifteen years' time, will we come under pressure? Perhaps we might, but I don't think it's in the interest of publishers or platform holders to do away with retail, because they won't get the standout any more," he warned.

"So I think there will always be a retail element. Where we'll be in 20 years, who knows, but I think there will be a retail element to all the formats we currently sell."

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MicroGamer4327d ago

There will always be a need for retail channels for electronics and content. People will always want to try out a machine before they buy it, so you need retail displays in stores and there are many who still don't trust putting their credit card info online and will only buy from a local retailer. Any console maker who tries selling their machines and games through online channels only, will end up losing big.