Digital Distribution Debuff – Analyst says Digital Distribution won’t affect GameStop for another 5 years

Sourcelink: Industrygamers

When speaking to GameStop’s Sterne Agee analyst Arvind Bhatia, he says that digital distribution will not effect GameStop’s sales for another 5 years. In his talk, he mentions that top brass of GameStop have down thorough research and come to the conclusion that customers still prefer to purchase games at Brick-and-Mortar shops. He says that 2014 will be the time where digital distribution will have any effect on their bottom line, when “25% of the population will have easy access to downloads”.

Bhatia says that this research isn’t about competition, but about adapting to the current environment.

Brad’s Take: I find it hard to believe that GameStop isn’t worried about the possibilities of getting console games via digital distribution. GameStop literally lost 90% of it’s PC gaming market when most games became downloadable in the beginning of this decade, where they were forced to evolve into a console gaming store.

And to combat the potential of losing sales, GameStop does have cards to purchase points, cash and membership plans for digitally distributed purchases.

That being said, all it takes is one game that everyone wants that you can get digitally on the same day as the brick and mortar shops and you’ll find a significant cut in sales for said title. The analyst says 2014…I’m thinking 2011.

Why 2011? Wii started it, PS3 continued, and now 360 is embracing allowing players to download whole titles onto their 360. And with OnLive allowing full streaming games, when will any of the big three allow full streaming games on their consoles?

2011 is shaping to be a huge tech year all around, with Natal possibly being released along with Sony’s motion stuff. 2011 may also be the year Wii HD will be released and don’t think any of these three systems may not have full distribution titles. Don’t you think gaming companies would love to not give GameStop a cut of their profit?

Tags: Digital Distribution, Gamestop

This entry was posted on Tuesday, June 23rd, 2009 at 1:12 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed.