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Let that sink in for a second: a single chain of gaming stores sells more individual Xbox One and PS4 games than all the big box stores, retail websites, and direct digital downloads combined. That doesn't sound like a business that's on the verge of collapse. Total, year-over-year sales growth of 25 percent for the quarter, including a 16 percent increase in new software sales, also sounds pretty healthy for GameStop.
Then again, GameStop may be able to weather the transition away from retail stores better than most. The company reported its "digital receipts" were up 18 percent year-over-year in the most recent quarter, including a 13 percent increase in "console digital." That is to say, GameStop is making more money than ever selling download codes for console games and DLC in its stores (and on its website).
If GameStop plays its cards right, the brand could evolve from "the place you go to sell your discs for store credit" to "the place you go to buy a download code with cash." For now, though, it's overwhelmingly the place people go when they want to buy games for their new consoles.
This isn't new territory for EA. In the past week the card-game-slash-RTS title BattleForge went from a $29.99 purchase to a game that's free to download and play, although if you want to buy more digital cards for the title you'll have to shell out the cash. Battlefield Heroes is likewise being released for free, once the lengthy beta period comes to a close. EA plans to make money by offering cosmetic updates for a price; players can buy hats or clothes or other objects to personalize their player.
The first content download for the 360 version of the Oblivion is out, and I'm not sure if this is something people are actually going to want. Are you willing to pay money to give your horse armor? The download is 200 Microsoft Points (about US$2.50) and gives your mounts some pretty cool looking armor. I'm not sure if it's worth paying for, but it's definitely neat looking.
You have to wonder how much content we're not going to get in the first release of a game simply so they can sell it to us. $2.50 isn't a lot of money, but if people download it by the thousands you're looking at a quick and easy revenue stream for Microsoft and Bethesda. Luckily for PC players this is the sort of thing they get for free.
According to Paid Content, Sony plans to close its SonyConnect music and video store in the next few months. Connect, which workssimilarly to iTunes, allows users to download music and video content to Sony'sline of media players and to the PSP. Sony plans to phase out around 20 jobs as part of the closure.
Now, however, we know that a year of the service with be $19.99USD, or carry higher rates for shorter-term deals. The key, though, is that subscribers will have ongoing access to 'a compilation of classic titles' that they can download and hang onto for as long as they're paying into the service. Three NES games were confirmed initially, (Super Mario Bros. 3, Balloon Fight and Dr. Mario) but the collection will surely grow.
If the offering and paid features look familiar, that's because it's basically the same as PlayStation Plus and Xbox Live Gold, only cheaper and without 'modern' free downloads. Nintendo's updated proposal came, we suspect, as a response to initial fan feedback to the original pitch and after looking at its rivals. Not only do Sony and Microsoft offer pricier options that include a mix of free current-gen games every month, but Microsoft recently launched its Game Pass at $7.99USD a month. Unlike PS Now, which arguably has the downside of streaming the games, the Game Pass lets Xbox owners choose freely from a group of roughly 100 games that they can download onto their hardware. There's debate over whether it's 'worth it' because of the game selection (which will rotate regularly), but it's certainly a disruptive product, blending the Netflix approach with downloads rather than streaming.
Nintendo, ultimately, had to go cheaper than its rivals, as the Switch simply does not have the library (and won't have for quite some time) to offer full modern downloads. In limiting its free games to retro initially, Nintendo also ensures it doesn't need to pay out notable royalties or fees to third-parties; in the early days it can churn through its own retro content at limited cost.
I'm not big on anything as a service, but in this case, it's the better strategy. Nintendo insisted on calling the Virtual Console a service since it began, and it never really was a service since it was really just another aisle in their download stores. I've been wishing for exactly this for some time so I am now convinced that I must be some kind of wizard.
I only really care about getting N64, GC, and Wii games through VC (and Wii U, but it's unreasonable to expect Nintendo to be capable of emulating Wii U games RN). I'm fine with whatever lets me download those games at a reasonable cost. 2b1af7f3a8