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Game Retailers Facing Digital Distribution Transition

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    Last Updated: October 26, 2009


    This editorial at Eurogamer examines how the games industry is dealing with the growth of digital distribution — a transition they’re handling better than other entertainment industries, but not without a few stumbling blocks of their own. “The examples from other industries undergoing this transition are not promising, since they tend largely to focus on metaphors involving creeks and a distinct lack of paddles. Bricks-and-mortar retailers of music and movies have largely sat back and grumbled while their businesses were hijacked, first by online retailers of physical product and then by digital distribution services. … Specialist games retailers who follow that model face little more than a decline into insolvency in their medium-term futures. Worse again, they face competing with far bigger companies to retain their slice of an already shrinking pie — as boxed game retail sales fall off in favor of digital distribution, supermarket chains are increasingly seeing high profile games as a worthwhile loss-leaders.”

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