Video Game Distributors Are Gearing Up for an All Digital Future
An all Digital Future is only a matter of time and we are now seeing video game distributors preparing for the inevitable. The New York-based distributor Alliance Media Holdings, a company that has direct buying relations with major companies in the region has rebranded its Alliance Digital Media division, seeing the digital revolution.
The media division will offer indie developers $50,000 to $500,000 per title and its publishing services. The diversification to digital media is the result of a recent 41% revenue fall and CEO Jay-Gelman stated:
We are convinced that the industry as a whole is moving towards digital and streaming alternatives, and that this change will impact our financial performance sooner rather than later… Ultimately, the future of our company will depend on the success of our digital and content initiative, and our ability to fund its growth and further development.
Gelman stressed that retail remains a major distribution channel as digital still has many issues to sort out. The lack of high-speed internet and limited storage space on consoles along with ISP restrictions create a major problem. But Gelman acknowledged the success of DLC saying that it continues to grow.
DLC continues to grow at a rate that has outperformed all expectations… It does not have the same obstacles facing a fully downloadable game version, and the consumer, by all measures, prefers accessing this content digitally,
Retail is still a viable channel but Gelman wants to prepare for the future, making sure they are not caught off-guard. Eventually, they will move to an all-digital future when and if that happens.
How long do you think it would take before retail goes out of business? Another decade? Share what you think in the comments below.