Wednesday, 26 October 2011

Digital Distribution Research


Digital distribution has evolved and grown dramatically over recent years.  Research indicated a series of interesting figures that outline the overwhelming stature and growth in this particular area of the market (Links to reference facts are situated above):

  • ·         As of 2010 digital distribution amounts to 30% of the games market in the US.
  • ·         In 2010 it made a total of $5.9 billion.

  • ·         Data released by US company NPD revealing that 48% of PC unit sales in the US in 2009 were digital
  • ·         That translates to 21.3 million games downloaded in the US
  • ·         Interestingly, although 48% of games were sold online, it only worked out as 36% of the revenue. This highlights the fact that it isn't just convenience that has PC gamers shopping online; it is also that games are generally cheaper than in stores."
  • ·         Valve now says that year-over-year Steam sales have risen a significant 97%
  • ·         Direct2Drive has logged a 56% boost, according to IGN.
  • ·         Xbox Live saw a 73% year-over-year increase in paid downloads
  • ·         The wildly popular Battlefield 1943--a game which sold over 600,000 copies online in its first week--providing an example of the potential for digitally distributed games.
  • ·         Electronic Arts amassed over $90 million in direct digital sales in the first quarter of its 2008 fiscal year

In a contrast there is also evidence to suggest that digital distribution is not necessarily such a strong factor:

  • ·         Michael Pachter notes that downloads still account for only about 5% of overall sales, and are likely not a major contributing factor to the current retail sales decline.
  • ·         Downloads are probably $1-2 billion worldwide this year, compared to a $26 billion packaged goods market," he said. "Significant, but not enough to cause a 20% monthly sales decline."

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