Legal Online Downloading on the Rise
A recent poll shows that in the world of computer gaming, there is a rising trend in the sales of downloadable games as opposed to the standard of boxed CD-Rom games.
Some companies are even betting that PC gaming is on the cusp of a download revolution, much like its entertainment counterparts in music and video.
From MSNBC.Com: “It’s just another evolution of retail commerce of what in the end is a digital product,” said Jamie Berger, general manager at IGN Entertainment.
The Convenience of Digital Downloads
IGN owns Direct2Drive, one of a growing number of online stores for downloadable PC games. At its inception in September 2004, only four game publishers were on board, selling about 25 older titles. Today, the Web site carries about 130 games from 44 publishers, including titles released the same day they hit physical store shelves.
Impulse Buys Increase with On-Demand Availability
While refusing to disclose specific figures, Berger said sales and traffic to the store have been tripling every month.
Meanwhile, Electronic Arts Inc.’s Pogo.com, Comcast Corp. and Yahoo Inc. are offering games-on-demand services in which computer users buy subscriptions to access and download PC games, ranging from “Scrabble” to “Tom Clancy’s Splinter Cell.”
As more households get high-speed Internet connections, downloads become more practical. Downloading computer games can take anywhere from just a few seconds to a few hours, depending on the file size.
And judging by the success of Apple Computer Inc.’s iTunes Music Store—with more than 1 billion song downloads—more consumers are getting used to the notion of digital-only versions of media.
For gamers, downloads can be more convenient and provide instant gratification.
Online Sales Increasing Exponetially
That’s why market researchers are seeing these numbers:
Traditional shrink-wrapped PC games in the U.S. retail market are on the decline, falling to $953 million in 2005, a 36 percent drop from $1.5 billion in 2001, according to the NPD Group.
Internet-related game revenues in North America, including online purchases, subscriptions and advertising, rose to $1 billion in 2005, more than six times the $160 million in 2001, according to DFC Intelligence.
IDC predicts U.S. sales of PC game downloads will almost double this year to about $500 million and grow to $763 million in 2007.
Do You Want a Piece of $1 Billion?
The question for you is this: how can your business benefit from this trend? With more and more larger retailers doing substantial shares of their business entirely in the digital realm, the benefits of e-commerce and online sales will only increase as our economy shifts from a physical to digital market. The quicker you move with the market, and the easier it is for online customers to access your services, the better positioned you’ll be for what lies ahead.
As well, thinking “outside the box”, literally, is what has led to the success of downloadable PC games. The convenience of games-on-demand simply cannot be beat. Are there ways you can increase the convenience of access to your product or service?
Call us today (314) 225-5881 to discuss what e-tail solutions are right for your business!