Speculation About The Future Of Physical Game Distribution

In a recent interview with Theodore Bergquist, the CEO of GamersGate, the prominent industry figure predicts the decline and ultimate disappearance of physical game distribution in favor of digital distribution. Says Mr. Bergquist, “Look at the music industry, look at 2006 when iTunes went from not being in the top six of sellers — in the same year in December it was top three, and the following year number one. I think digital distribution is absolutely the biggest threat [traditional retailers] can ever have.”

Capcom’s Christian Svensson, in a different recent interview, commented on digital distribution as one of Capcom’s biggest priorities. Says he of their market, Capcom will “probably do as much digital selling as retail in the current climate.”

Digital game distribution relieves the consumer of the need to buy a game off the shelf, and it relieves the manufacturer of the responsibility of packaging the game in distribution hardware, such as on a disc or memory stick. It also relieves the cost burden of packaging the game in a box.

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