Is digital distribution the saviour of PC gaming?

Is digital distribution the saviour of PC gaming?

According to newly released data from the US, digital distribution accounted for 48% of PC games sales in 2009. It seems that the market is a lot healthier than we were led to believe

Over the years many voices have declared PC gaming dead. We have seen developers abandon the platform for consoles, citing piracy as the cause. Game stores have slowly relegated PC games from prime shelf position to one tucked away in the back corner - even Microsoft dumped AAA PC game developers from the company.

It seems though that the demise of the PC as a games platform has been exaggerated. The reason is that until very recently sales data ignored digital distribution and focused on retail sales. This has now been rectified, with the latest 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. Add to this the massively popular sales held on Steam and Direct2Drive and you have an environment where online provides better value for gamers than brick and mortar stores.

 

Buying online provides better value for gamers than brick and mortar stores
Buying online provides better value for gamers than brick and mortar stores

Unsurprisingly the top online outlet for games is Valve Software's Steam. This is followed by Direct2Drive. The rest of the top five is filled by game publishers, with Blizzard.com in third place, EA.com in fourth and Blizzard again at number five with Worldofwarcraft.com.

This means that a large chunk of the sales are one title, World of Warcraft, but there is still diversity out there. Blizzard.com sells World of Warcraft, but it also sells older Blizzard games like Warcraft 3 and Diablo 2. These are tied to the user's Battle.net account and downloaded from Blizzard. It will also be selling the highly anticipated Starcraft II: Wings of Liberty digitally, which should make the 2010 numbers even more interesting.

While Blizzard doesn't utilize other online retail outlets, EA does. So while EA.com makes it into the list on its own accord, some of the biggest selling titles on Steam and Direct2Drive are published by EA. This is a remarkable turnaround for a company that only a few years ago was seen as one of the biggest enemies of the PC thanks to poor quality console game ports and a general ignorance of the needs of PC gamers.

Are you comfortable with purchasing games online? Add your comment below.

See more about:  steam  |  gaming
 
 
Comments: 3
phenomenon9999
22 July 2010
Steam has allowed me to get games for incredibly cheap thanks to their sales. That Independence Day period was killer and it will return at Xmas. Saving me money on games that I would never pay a larger amount for.



Comment made about the PC Authority article:
Is digital distribution the saviour of PC gaming??
According to newly released data from the US, digital distribution accounted for 48% of PC games sales in 2009. It seems that the market is a lot healthier than we were led to believe

What do you think? Join the discussion.
mordie
24 July 2010
Steam is fine if the publishers STOP price jacking their games in our region! Just a few days ago Steam open up pre-purchase for 2K's Mafia 2 pc game worldwide however in the Australia region store the price was 49.99USD (the Steam store usings USD currency in the Australian store) on the first day but over the course of that first night of pre-purchase it got jacked up with no warning to $79.99USD and has remained that price.

This isn't the first time a publisher like 2K has jacked prices without warning - 2K's Borderlands suffered the same fate - Was listed on the first day of pre-purchase at 44.99USD then was jacked up to 79.99USD again without warning.

Complaints to 2K forums have fallen on deaf ears with PR reps and forum mods either locking or deleting posts about the pricing issue. One senior mod on the issue of Mafia 2 had some users move their discuss to a out of the way thread in another section which was for Steam and DRM discuss! ...

This has happned to other games and publishers but 2K's has been the more noticable publisher to this right rip off of Aussie Store buyers ... Note that the game is cheaper in ALL OTHER STORES even with exchange rates ...

What gets me is some games are way cheaper on the US store which is in USD and they are in some cases $20-$30USD more expensive in the Australian store ..WTF?

Some publishers calin it's competition that is the reason - well if I was steam I'd be pissed at the publisher for lose of sales ... it's not even equailant to the store prices! after conversion ...

FTA apparently states that we aren't to be region locked for purchasing of item dfrom the US - that is we should be allowed to access both stores and make our own choice ...

Between These pricing jackings and the region locking of games steams looking not the most trustworthy place to get games at a reasonable price....

As for the publishers if this is to stop priacy than they are sadly mistaken this would encourage it...

mordie
24 July 2010
FYI: it was report here: http://games.on.net/article/9688/Mafia_II_gets_pricejacked
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