Support NeoGAF

[Nirolak]

Peter Moore had some interesting comments about the disc based gaming business model that he gave at a conference panel about digital delivery.

EA Sports president Peter Moore has painted a grim picture for the future of disc-based videogames.

Speaking at the 5th annual PLAY Digital Media Conference during a panel about monetizing video games through micro-transactions and subscription-based services, Moore stated the core business model of shipping packaged gaming media as a platform is "burning."

"Look at the platform we're on, it's a burning platform," Moore stated. "As a concept, do you stay on the platform and face certain death, or do you jump into the water and face probable death? Most of you would choose probable death, so you start moving towards a hybrid model of digital distribution."

When asked if he was saying the consoles could become sinking ships, Moore reiterated his statement.

"I'd say the core business model of video games is a burning platform. Absolutely. We all recognize that, and we'll recognize it 10 years from now when we tell our grand kids," he said. "We'll tell them we used to drive to the store to get shiny discs that have bits and bites on them and we'd place them in this thing called a 'disc tray,' and it'd whirl around…and they'll go 'What?'"

"So, the concept of physical packaged discs and the core business model that is video games as it currently stands is a burning platform."

Despite looking ahead to an all-digital future, Moore stated Electronic Arts' primary distribution channel is still disc-based, and that the company ships between 125-130 million discs each year.

"As digital distribution becomes more and more, we'll continue as an industry to work with retail and to ship discs, but more and more of the content will be in the 'cloud.'" he added. "More content will be delivered daily, weekly, or monthly, and less will be of the old model of cartridges and discs."

Moore also said he believes Microsoft will be the first of the three major hardware manufacturers to release an entirely digital-based gaming console, but that movement is still years away.

"As an industry, I still think we may be as many as a decade away from saying goodbye to physical discs," Moore added. "The important question is, what does the next console look like? Does it actually have a disc drive?"

Source: http://uk.games.ign.com/articles/103/1036254p1.html

 

[dragonlife]

Fuck merchandise I can't physically own--FUCK IT!

 

[senahorse]

IGN asking those tough questions like usual.


edit: What I mean, is, this is completely obvious. Of course we will essentially be on a DD only solution in 10 years, it makes perfect sense. As for retail, well they can still play a part with download kiosks, download cards to sell etc.

 

[Mr YuYu]

I really don't like this evolution :-(

I really hope they will always leave the option to chose between either downoad or disc-based.

Somehow there something fun about staring at my shelf full of games. Though i really think my girlfriend wouldn't mind digital distribution

 

[GrotesqueBeauty]

I disagree. I think people like having physical copies for various reasons, at that although the proportion of content released on physical media vs. digital distribution may change there will always be room for both. The real problem imo isn't the cost of physical media; it's that development costs are growing at an unsustainable rate.

 

[WrenchNinja]

They're like fear mongers, I say. I'm getting scared of this DD future people keep talking about.

 

[Nekofrog]

Fuck loading a new disc every time I want to play a new game--FUCK IT!

Fuck boxes and cases that take up my physical space and that I really don't even want at all--FUCK IT!

 

[neorej]

Yes piracy is a big issue.

 

[segasonic]

I will never buy a console that is downloads only.

 

[HK-47]

I disagree. I think people like having physical copies for various reasons, at that although the proportion of content released on physical media vs. digital distribution may change there will always be room for both. The real problem imo isn't the cost of physical media; it's that development costs are growing at an unsustainable rate.

The real problem is that, unlike PC, the console manufacturer has a monopoly on DD. DD only on consoles just serves to take away the only other options.

 

[Dra-Q]

Well, I love Xbox Live Arcade and PSN as the next guy, but new releases via DD?

I don't know Peter.

 

[grandjedi6]

Every reason for why Microsoft wants a digital download only future is a reason why consumers shouldn't want that :/

 

[senahorse]

Well, I love Xbox Live Arcade and PSN as the next guy, but new releases via DD?

I don't know Peter.

Steam says hello, as does Impulse and many other online services.

 

[Mr YuYu]

I won't buy any console that is downloads only.

Suppose all consoles are download only in 10 years? U'd just quit gaming or what?

 

[HK-47]

Suppose all consoles are download only in 10 years? U'd just quit gaming or what?

PC

 

[segasonic]

Suppose all consoles are download only in 10 years? U'd just quit gaming or what?

Yes, pretty much.

 

[Fakto]

Fuck merchandise I can't physically own--FUCK IT!

Unless ... unless the digital media is 1/2 the price of the regular one.

Spoiler

Euro Steam FUCK YOU !

 

[confused]

I like discs and other physical media. Gives me the feeling I get something back for my money other than a download key.

 

[Acosta]

Here come the tears.

 

[B!TCH]

Good. More environmentally friendly too. People that want to stick to physical media are luddites. Don't let them get in the way of progress.

 

[neorej]

Suppose all consoles are download only in 10 years? U'd just quit gaming or what?

You'll make your console dependant of the Internet and not every region has internet and those who do, don't always have broadband. I read somewhere broadbandpenetration in the UK is around 20%. That means 80% of your customers have to wait ages to download your game.
Plus the rediculous bandwithcaps some countries still apply. Plus several (Dutch) ISPs that automatically assume you're a pirate once you download over 1,5GB (and/or carry a parrot on your shoulder).

 

[Mr YuYu]

Yes, pretty much.

Wow, pretty hardcore there. I can't see myself quitting everything. But if it does go download only i'll surely be buying a lot less games. Now i sometimes buy games (only rpg's) just for the sake of collecting. (got like more than 40 rpgs on my shelf i haven't played yet) With digital only i can't see myslef doing that.

 

[water_wendi]

umm yea.. ill never move to DD.

 

[Dabanton]

PC

The PC will lead the charge of DD only content.

 

[V_Arnold]

It is worth to note before the DD vs Physical media flames burn at the highest, that the GAMES ITSELF, which you have been paying for, and for which you will pay in the future, are the same regardless of the method you got it.

So in these lights, the "problem" is only a viewpoint issue, as you will be paying for games 50+ years later in the future, so did you 30 years ago. I think that people who are growing up now will have no real issues with DD method, as it is just following trends already seen in the movie/music industry.

 

[Gadfly]

I came to this thread expecting people making fun of him for stating the obvious. I am surprised at some of the reactions.

DD and owning the game (to be exact, having a license to play the game) are not mutually exclusive. Yes, DD will make concepts like lending the game or selling it obsolete but look at music. A lot of people do not mind putting up with the DRM and other limitations for the sake of convenience.

 

[rainking187]

Gaming exec endorses the format that will give them all the control and more profit. Shocker.

 

[Kintaro]

Good. More environmentally friendly too. People that want to stick to physical media are luddites. Don't let them get in the way of progress.

Sarcasm meter is broken this late at night. I'll assume as such and not weep for more and more consumers want to willingly take it up the asshole with a smile.

 

[iamaustrian]

fuck that DD shit altogether.

 

[Mr YuYu]

You'll make your console dependant of the Internet and not every region has internet and those who do, don't always have broadband. I read somewhere broadbandpenetration in the UK is around 20%. That means 80% of your customers have to wait ages to download your game.
Plus the rediculous bandwithcaps some countries still apply. Plus several (Dutch) ISPs that automatically assume you're a pirate once you download over 1,5GB (and/or carry a parrot on your shoulder).

True, but in 10 years, one can assume that broadband will be all over the place (exageration)

 

[StarEye]

DD-only will lead to more piracy, imo. A lot of people love to play around with old consoles, visit old games they never got to play when it first came out. We will be forced, more or less, to buy hacked consoles and download illegal copies of the games for it. If the console isn't sold anymore, and the company decides it's time to quit selling old games for a console no longer being sold, what else can we do but to pirate?

Not to mention, pricing will have to be drastically reduced, so that people feel they get value for their money. I love the idea of DD in some ways, but fear it in others. Pricing is one of those fears, as well as what I wrote above.

 

[Kujo]

Yay I love spending more for less, sign me up.

 

[HK-47]

The PC will lead the charge of DD only content.

PC has competition between DD services.

 

[neorej]

True, but in 10 years, one can assume that broadband will be all over the place (exageration)

Assumption is the mother of all fuckups.

 

[rainking187]

I came to this thread expecting people making fun of him for stating the obvious. I am surprised at some of the reactions.

DD and owning the game (to be exact, having a license to play the game) are not mutually exclusive. Yes, DD will make concepts like lending the game or selling it obsolete but look at music. A lot of people do not mind putting up with the DRM and other limitations for the sake of convenience.

A lot of people are dumb apparently. I mean really, you'd give up all your rights to sell, lend, etc your copy of the game so you don't have to make a 15 minute drive to the store or swap a disc every ten hours?

 

[lowrider007]

Awesome, I'm getting tired of physical media tbh.

 

[HK-47]

I came to this thread expecting people making fun of him for stating the obvious. I am surprised at some of the reactions.

DD and owning the game (to be exact, having a license to play the game) are not mutually exclusive. Yes, DD will make concepts like lending the game or selling it obsolete but look at music. A lot of people do not mind putting up with the DRM and other limitations for the sake of convenience.

Music doesnt cost as much as games.

 

[Kosma]

umm yea.. ill never move to DD.

yes you will

 

[Vast Inspiration]

A lot of you are expressing disdain, but he is not wrong. Digital Distribution IS the future. He's also stating that its a decade or more away...which is reasonable.

But, by then, I honestly do believe that prices will go down. If in 10 years I can download (or even stream) a game, that'll be cool. But yeah, a lot of that does depend on broadband penetration, isp control, bandwidth limitation, etc...

 

[jorma]

I used to be naively excited about the possibilities with DD, back when i thought that the savings from cutting out the retail distribution channels would go to the consumer.

Now it looks like developers and digital distributors want to keep 100% of the cut for themselves.
So games that are just as expensive as before, with no possible way to resell them and possibly with DRM that will make your software malfunction if the entity that keeps the DRM goes belly up looks to be the future of DD, at least as MS and Sony wants it.

Thanks but no thanks. I think that for this to work out consumer friendly we need some DD regulations. A system where the publisher would be forced to honor a consumer to consumer transfer of software ownership would be a good start.

 

[Synth_floyd]

It's the obvious next step. Music has already gone DD. Sales of CDs are down and downloaded music is up. And of course there's all the music that gets pirated for free. Games will be next, maybe in 10 years or so and 2 generations from now.

 

[Gadfly]

A lot of people are dumb apparently. I mean really, you'd give up all your rights to sell, lend, etc your copy of the game so you don't have to make a 15 minute drive to the store or swap a disc every ten hours?

At some point the issue will not be convenience. DD will be the only way to get the game you want to play.

Already quite a few good games are only available on XBL or PSN. Doing the same for major games is the natural evolution of what's happening now.

 

[MightyHedgehog]

Yeah. It's going to happen because most people prefer the method. Oh no, not everyone has broadband! Guess what? That isn't stopping gaming as it has always been (even today) from only being sold and aimed at select markets. A global electronic communications connection in the future, whether it be the current setup of the internet or something of an evolved form will be far more...global and common. In it, geographic borders are largely erased and people can buy and access their content anywhere. That's the inevitable future. The question is when and how, not if. Along the way there will be plenty of different stabs at it until a set of standards are placed down. A DD-only future is not inherently bad as it's still always been about offer and acceptance. Don't like it? Don't buy it. There will likely be a way to buy what you want in a general sense...and likely niche, hardcore markets that cater to physical media fans. Prices will be dictated by what they always were, supply and demand. Just because the physical element is gone from the equation means that prices have to stay artificially high...the market will force prices and value around...like they always do. Anyway, next gen will probably be the real bridging generation between physical media-based platforms and all or nearly all DD platforms. The current one is still figuring out things and a little ahead of the curve of the most of the market.

 

[water_wendi]

yes you will

im pretty sure i wont. ive made it this far without DD.. even things similar in principle to DD like Steam i avoid. i bought HL2 at launch.. found i needed to be online to play.. took it back immediately and it hasnt bothered me any.

 

[Kintaro]

A lot of you are expressing disdain, but he is not wrong. Digital Distribution IS the future. He's also stating that its a decade or more away...which is reasonable.

But, by then, I honestly do believe that prices will go down. If in 10 years I can download (or even stream) a game, that'll be cool. But yeah, a lot of that does depend on broadband penetration, isp control, bandwidth limitation, etc...

Ah, so only be that naive again.

 

[Myke Greywolf]

Game publishers talking about the way they would like game distribution to be made, without any regard for their customers' opinion. Heh.

Come talk to me when full-priced DD releases are actually cheaper than their physical media counterparts.

Whatever happened to "the customer is always right"?

 

[Visualante]

Everyone who doesn't accept DD is part of a dying generation.

You're expendable. Stop wasting your energy fighting it.

 

[water_wendi]

At some point the issue will not be convenience. DD will be the only way to get the game you want to play.

Already quite a few good games are only available on XBL or PSN. Doing the same for major games is the natural evolution of what's happening now.

You make it sound like ill be forced to buy. Sure if i want to play.. but if its an ultimatum between DD and playing a new game.. oh well, it sounds like a lose for them more than me. i have hundred of games i can play whereas the devs dont have a bunch of my money in the closet they can use to substitute my non-purchase.

 

[Vast Inspiration]

Ah, so only be that naive again.

OH please, XBLA has already conditioned a lot of gamers to expect quite a bit for $10-15. Apple Store is also bringing prices down. People are expecting more for their money.

IF anything, its retail that is providing less and less for the dollar.

 

[rainking187]

It's the obvious next step. Music has already gone DD. Sales of CDs are down and downloaded music is up. And of course there's all the music that gets pirated for free. Games will be next, maybe in 10 years or so and 2 generations from now.

Music isn't DD only though. Which is what some people seem to want for gaming for some reason. If the industry was saying "We're going to start making games available on disc and for download on the same day.", then yeah, bring it on, why not. But "Games are going to start being DD only." no, fuck off with that shit.