Monday, July 17, 2006

 

Crisis in Video Gaming

Digital distribution is a hot topic in the video game business these days. Video gaming has traditionally relied on getting games to market using CD-Rom formats and physical gaming devices. The attached article from GameDaily remarks that digital distribution will require a completely new skillset to ensure success. Investor Stuart Alsop says, "Even the word 'download,' it's a little like using the word LP to refer to a CD... Download would become a term that is no longer used because things are just present and available".

Another article in this webmag suggests that the whole business model for video games is broken. Games and new platforms are getting more expensive when the trend in similar industries (e.g. mobile phones, music etc.) Also, the industry has failed to adequately account for new competitors and substitutes for their products.

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