DIGITAL DISTRIBUTION Conquering the digital High Street
When games disappoint at traditional bricks and mortar, can digital distribution help them achieve their true sales potential? James Batchelor investigates how boxed failures can rake in a downloadable fortune
The Cities XL series’ virtual highways have thrived online but have struggled on the real High Street
A CURSORY glance at the download charts from leading services such as Steam and Direct2Drive suggests the digital retail market isn’t all that different from the High Street.
But look a little closer and you notice a few oddities breaking through. Lesser known titles from smaller firms can be found rivalling and even outperforming some of the industry’s biggest names. Examples range from JoWood’s Arcania: Gothic 4to Focus Home Interactive’s Cities XL 2011– titles that rarely (if ever) appear in GfK Chart-Track’s PC charts, let alone the lofty heights of the All Formats Top 40.
ONLINE OPTIMISM With High Street shelves becoming increasingly crowded, could digital distribution be the salvation that
52 November 12th 2010
publishers of such titles have been hoping for?
“While games can do well through both channels, one of the great things about a robust digital platform is that it removes many barriers and seems to have allowed more titles to become successful,” says Valve’s director of business Jason Holtman. Atari US’ senior director of digital strategy and distribution Alexander Chung adds: “Although retail is a key channel, digital distribution is critical for some of our games.
“There are a number of reasons why this is the case. Firstly, there are games by design that can only be enjoyed digitally such as browser-based games where physical product or client is needed. “Secondly, titles that sell DLC or micro-transactions inside the game tend to perform better via digital
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Digital platforms remove many barriers, allowing more titles to become successful. Jason Holtman, Valve
distribution. And thirdly, back catalogue titles – most of which can not compete for the limited shelf space with retailers – only have digital distribution as a channel to reach their audience.”
A SLUGGISH MARKET The decline of the PC retail market is a key driver in the rise of digital distribution.
With retailers giving more and more space to consoles and handhelds, publishers have to work even harder to secure place for their PC titles – particularly if they’re depending on discoverability rather than a recognisable franchise. “With PC games losing more and more shelf on the High Street and stock levels being so critical for boxed product and online buyers, consumers’ decisions are often skewed towards major triple-A
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