Retail Still Accounts For 72% Of Software Revenue

Develop Mag have just published the results of UKTi's Playing for Keeps report. Of interest is that the study looked at the total revenue generated in 2006 by software sales globally, then broke that down into how much of it was generated by various retail and distribution methods. Bricks and mortar retail was obviously still the predominant force, but it's interesting to note the inroads being made by other sources, such as DLC, MMOs and digital downloads.

For all the talk of digital download services like Gametap and Steam nipping at the heels of retailers, for now, it's just not happening. Not even close. The report found that a meager 0.5% of all full-game sales were made via digital downloads, and that's including both the PC and console markets. To be fair, this is from 2006, before the Virtual Console and PSN took off, but still. They won't have had a MASSIVE impact on the figures. Here's what the total market break-down looks like:

72% - Bricks & Mortar Retail
10% - Mobile Games
7.3% - Downloadable Content & Items
6.7 % - MMO Subscriptions
3.2% - Casual PC Games
0.4% - Direct Download PC Games
0.1% - Direct Download Console Games

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Armyless4960d ago

They should STOCK games if they want to SELL them. If I wanted to ORDER a game to BUY one I would ORDER one ONLINE and have it SHIPPED to my HOUSE!

Bleyd4960d ago

Why would you own a game store and not order games for stock to sell them? People don't always want to preorder because they might be on the other side of the town from where they live or work and it would be out of their way to go back to that store and pick up your game. Not to mention what would happen if you've preordered a game and your store happens to be the last one to get their shipment in. There's nothing they, or you, can do about that but you're the one that's screwed because they already have some if not all of your money locked into the purchase of that game. Now consider what would happen in the world of gaming where every purchase was made by preordering your games through their store. They've already got your money so they really couldn't care less when the shipment comes in even if it's not on the day that the game is released or even the day after and in fact they might even start trying to save more money and decrease their costs by not shipping it express or even next-day shipping.

Where does your money even go when you preorder? They're holding onto your money and you've gotten nothing in return for it for weeks and sometimes even months. What do they do with all this money they're collecting for free before they've even got the product in? If it were me then I'd be setting up some kind of account in a bank at the very least and accumulating all this preorder money in there to be accruing interest. At some point the account would grow so big that they wouldn't need to take your same money back out again and instead would just keep depositing your money in their account and settling the unbalanced difference with the interest that accrued on the account.

This is worse than one of those movie made viruses that gobbles up all the fractions of a penny from all the accounts in the world and makes one person obscenely rich because this is actually legal. It's basically extortion in a nutshell with money laundering on the backend. They withhold the games from you by not ordering them unless your preorder them. That's extortion if I've ever seen it.

All gamers should be boycotting Gamestop. Buy your games from Target and Walmart and all those indie game stores instead. Stop helping to feed the monster that is Gamestop before it's too late.