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GameStop: Digital distribtion will not be an “addressable market” until 2014

Saturday, 20th June 2009 16:45 GMT By Stephany Nunneley

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Analyst Arvind Bhatia of Sterne Agee has said in a research note composed after meeting with four GameStop executives, that the game retailer does not see digital distribution becoming a viable market until 2014.

The company says it has “conducted the most thorough study to date” on the subject, and feels that an “addressable market” for digital downloads “will not exist until 2014.”

GameStop management also expects that only 25 percent of consumers, even by 2014, will have access to the technology required to purchase and download digital titles and that it could cost them $100 a month.

Bhatia never said what the reason for this cost would be, but one can assume it applies to subscription fees, broadband service, and possibly PC upgrades.

The study also revealed that due to storage space requirements and customers only wanting to pay $39 per title at most, it would give publishers less of an incentive to use such a service “as some in the industry might think”.

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7 Comments

  1. Razor

    I think it will be even further away than that.

    #1 5 years ago
  2. Psychotext

    “The GameStop executives also pointed out that such digital distribution could cost users $100 per month”

    $100 a month for a broadband net connection. What?

    #2 5 years ago
  3. Phoenixblight

    Yeah they are outdated on their info. They are going off of 10+ years ago. If there was no market for it Sony wouldn’t be changing on their handheld is being handled in fall if there wasn’t a market for it. Retail companies are getting scared of the digital age.

    #3 5 years ago
  4. Anders

    What he’s really saying is “We say it can’t be done, so please, don’t try to!”

    They should be scared. Ten years from now… Just you wait.

    #4 5 years ago
  5. JesteR

    Digital download will encourge even more people to download games on torrent. Theres no difference then between a torrent file and a legal file. And what about special edition? What about preorder bonuses? I dont like digital download and i would always buy a physical copy before a digital one.

    #5 5 years ago
  6. freedoms_stain

    What type of business model are they talking about? Stean appears to be doing ok.

    I don’t see why storage is an issue either if they give a facility to make a hardcopy or other form of back-up, like, whoda thunk it, Steam.

    #6 5 years ago
  7. blackdreamhunk

    wishful thinking on gamestop part.

    #7 5 years ago

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