Digital may be the topic on everyone’s lips these days, but don’t discount the disc just yet. Manufacturing, duplication and packaging experts tell James Batchelor why boxed games still have a role to play in the market’s future
THEY SAY that the disc is dying. They say that most consumers prefer downloadable entertainment – not just games, but across all forms. And if we believed the all-knowing
‘they’, the future would look bleak for the companies that actually produce the discs and boxes sold at retail. Certainly, the diminishing demand for these services seems to offer little in the way of hope. “We believe the European market for replication will shrink by about 10 to 15 per cent per year as more and more games, audiobooks, DVDs and so on are distributed digitally,” says replicator OK Media’s UK commercial director Doron Garfunkel. Duplication firm Dischromatics’ sales manager Alex Spencer adds: “This will be something that affects all industries that currently use optical media.”
LET’S GET PHYSICAL
But these firms maintain that there will always be a place for physical media in video games.
“In the future, when the world we inhabit exists almost purely as software, there will likely be a resurgence in demand for boxed product, but this will likely be a socio-emotive evolution of the consumer – a retro kick back,” says CD Writer owner Nic Ranshaw. “Expect physical media to evolve rather than die.”
Looking to the less distant future, Ranshaw predicts that this evolution could see the role physical media plays in delivering content could change. When downloads dominate, boxed products will still have an edge when it comes to discoverability. “Manufacturing will become more specialised and niche, with physical product being used to build brand awareness and generate buzz with the publication of limited collector’s editions,” he says.
Jeanette Sølling, global sales and
marketing director at Steelbook creators Scanavo, agrees: “Standing out on shelves is critical to success.
“It is not possible to download premium packaging and the physical appearance of products in store is still the single most important way to promote film and games – no matter if it is for digital use.”
OK Media’s Garfunkel, Scanavo’s Sølling, CD Writer’s Ranshaw and Dischromatic’s Spencer (clockwise from top left) have faith in the future of discs
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Manufacturing will become specialised and niche, with physical product being used to build brand awareness. Nic Ranshaw, CD Writer
MAKING NEW OPPORTUNITIES Some companies question if the decline in demand for physical product will have as severe an impact as industry naysayers claim. “If the next generation of consoles have optional disc facilities, is that really that far away from what we currently see?” asks Spencer. “Full games are already available on PSN and XBLA right now. But I for one don’t plan on downloading the next Elder Scrolls, for example – and not just because of the time this would take to download.” And even as the need for game discs decreases, many firms have found new sources of revenue anyway. “As competitors go bust, more and more big names are contacting us to manufacture high-end products,” explains Garfunkel. “Our existing clients are ordering fewer units but that is offset by acquiring new clients. “And distribution is a new area that has been in demand for clients
outside of the CD and DVD industry – such as international webshops who need European partners for warehousing and logistics, or pick, pack and ship solutions. There are clients from the Far East, US or India who all need a warehouse based in Europe.”
All eyes are on the next few years. The release of new consoles will provide a shot in the arm for the sector – regardless of how prominently digital features on them – and manufacturers are confident that the decline in physical demand will slow down in the near future.
“Going forward, we predict there will be stabilisation in the market for physical product as the contraction levels out and we can look forward to a four-year long plateau of stable sales,” says Ranshaw. “And the richer the media content of next-gen consoles is, the higher the revenues we can expect from shipping large capacity physical media and boxed products. The UK broadband infrastructure is still largely over subscribed and will struggle to instill the confidence required for large-scale adoption of the digital-centric business models.”