Denmarkian said:
You're missing one of the key points of having direct downloads: they're cheaper.(snip)
Okay, so there are several games that are the exact same price on Bestbuy.com and Steam:
What the hell?!?
That completely shits over my entire argument. Fuck.
No, your argument stand, but there are some things to think about:
- Publishers might force virtual distributors to match prices with "physical copy" distributors because otherwise they'd lose the latter channel
- Online distributors will charge cheaper only in situations where they are competing with other "distributors". And even then, the incentive is reduced. In the physical world, distributors discount in order to clear stock. In the virtual world, there is no "stock" to clear, so old games can remain at a higher price for longer. Good for publishers... not so good for consumers?
- Physical distributors price all items similarly, and online distributors will probably do so too; there's no reason to sell "Halo clone 1" cheaper than "Halo clone 2" because, you know, the profit margin on them both is the same. This is what currently happens on XBLA. All the sh£t is the same price, and the "good stuff" is more expensive.
The main argument against digital distribution is that currently companies like MS and Nintendo exercise a form of "release scheduling" and "author control" that publishers might not like or care to enter into. If the only way to buy is on your Xbox, then MS has far too much control on who sells what, and how it is displayed.
It is likely then that publishers would push for an open system that allowed console users freedom to buy through the browser from online distributors, rather than directly from the console manufacturer's "walled garden" (i.e. on-console exclusive download interface)
Console manufacturers, on the other hand, will probably enforce the "walled garden" approach.
For myself, I have to say that in the even games get more expensive, I'll buy fewer games. Ultimately, if the cost of games goes higher, people will buy fewer game and re-discover the PC. After all, there are several excellent free Flash games out there....