Game Journalists Under Threat from Digital Downloads

Kris Erickson writes:

"The new PSP Go and Nintendo DSi both offer customers the ability to download retail games directly to the device, without ever having to go to a shop. Needless to say, many retailers have reacted with considerable caution to this new direction the video game industry will take in coming years. Manufacturers like Sony and Nintendo stand to make a lot of money through these payment systems (essentially recouping all of the profit that used to be lost to retail middlemen).

But if every single video game was sold via download, what would happen to popular sites like N4G, Joystiq and Kotaku, who rely heavily on sales commission and retail advertising?"

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clinker3346d ago

I wonder how much money N4G currently makes from those Amazon product boxes they put beside game reviews? What will they replace that revenue with once its all gone digital?

GWAVE3346d ago

If sites like Kotaku got shut down because they couldn't scrape any money from retail advertising, I'd say DIGITAL DOWNLOADS FOR THE WIN!

clinker3346d ago

What websites would you want to see survive instead, and how would they survive, pay their staff etc.?

kapedkrusader3346d ago (Edited 3346d ago )

...HOLY S#*T!!! Did he just say,"But a significant portion of our revenue (around 30%) comes from commissions we earn on video game sales with places like Best Buy and Amazon. At the end of a particularly positive game review, we will often place a link to the game for sale on Amazon. If a reader buys the game, we earn a 6% commission on the sale." If this doesn't explain every over-rated game that we have ever argued about in N4G than nothing does. Who else is flabbergasted by this? Reviewers getting commissions of game sales generated by their "positive" review. WTF???!!! This completely contradicts a reviewers purpose, which is to help the public determine which games they should spend their hard earned cash.

clinker3346d ago

It just occurred to me that this might be the reason many journalists have been dissing the PSP Go...

Massive conspiracy by publishers to fight Digital downloads?!?