Report: Digital Distribution Not Affecting Game Industry

21 Sep, 2010 By: Billy Gil

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While streaming and downloads may be taking an increasing bite of the home video pie, digital distribution is hardly affecting video games, according to a report by research firm Interpret.

The report shows 80% of gamers do not buy games digitally. In the first quarter of 2010, distribution grew on core PC platforms (e.g. Valve’s Steam) and consoles (such as Xbox Live Marketplace) but decreased on casual game portal sites in favor of social and mobile gaming, compared with the first quarter of 2009.

Additionally the report said the 20% of people who bought games digitally also purchased 2.7 games on average every six months at retail locations, which was 20% more retail purchases than those who did not buy games digitally.

“It is critical that both the publishing and retail sides of the game industry avoid overreacting to a vision of rapid transition to digital distribution that fails to reflect reality,” said Brenton Lyle, managing strategist for Interpret.

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