TexanGamer: BIG on Gaming

GameStop’s got the retail gaming industry by the throat. That bodes well for the Texas economy, as GameStop is apart of it (located in Grapevine), but could their reign be over once digital distribution takes over?

Well, yes, but the company isn’t concerned. At the 2008 GameStop Expo, VP Bob McKenzie addressed the press on the issue, stating such worries are frivolous since it’ll be a while before digital distribution becomes a “significant threat”. How far off? He believes 2020 is a good marker, according to stuides the company has done internally.

“We’ve done some internal studies, really looking at the bandwidth of the internet in the U.S. as it is now, and, I mean, it’s years before you would be able to take a larger game and timely download that within the current configuration of the internet,”- Bob McKenzie, GameStop VP

That doesn’t mean GameStop hasn’t done their part to push the move. The companies own website hosts a section for customers to download games.

However, Acclaim’s David Perry believes GameStop is being too pompous.
“He says we are 12-17 years away from downloading games digitally? I know he’s got to pretend that digital distribution isn’t relevant (or any kind of threat) to protect his stock price, but I guess Steve Jobs is miles off course then (100,000,000 digital downloads in the first 60 days of opening Apple’s ‘Digitally Distributed’ App Store,)” argued Perry. “Or that iTunes is now the biggest music retailer in the world. There’s tons of games I can download today, digitally, on console and PC. 12-17 years? Try right now.”- David Perry, Acclaim

And what’s the catalyst for this demand? According to Mr. Perry, pricing.

“In reality, every game that goes ‘digital’ will drop in price for the consumer (when compared to today’s system). ‘Price’ will always be a key part of the ‘buy’ decision for consumers, and removing fees for GameStop, Packaging Design, Packaging Materials, Manuals, Shipping, Insurance, Manufacturing, Distribution, In-Store Promotions, Co-Op Advertising, Returns, etc. will help consumers see attractive price drops,” said Perry. “For publishers, removing first party fees to make custom expensive Blu-ray discs will be a nice price reduction also. And yes, as an industry we have no problem paying a distribution fee (as we are very used to that due to our relationship with GameStop).”- David Perry, Acclaim

So what’s his recommendation to GameStop in order to avoid bankruptcy?

“If they want their company to still exist in 12-17 years, I’d go and buy Steam from Gabe Newell, which technically can’t exist yet as Gabe is clearly 12-17 years ahead of the curve.”- David Perry, Acclaim

I have to say, I love how this guy responded. He’s right that GameStop is saying what it’s saying to protect stock from going down, but at the same I think he’s taken the statement too much to heart. Like I said and pointed to above, GameStop does offer titles online for download. It’s not much, but I saw it’s a good start. I don’t think GameStop has to worry about not existing in 12-17 years, but I do think the GameStop we know will be very different by then.

Source: Gamasutra (GameStop’s remark) The Escapist (David Perry’s rebuttal)