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GamersGate: “We’re not afraid of Steam”, Valve’s service “peaking”

Tuesday, 8th February 2011 02:23 GMT By Brenna Hillier

GamersGate CEO Theo Bergquist has told IndustryGamers that the digital distibution war is about get a lot more interesting as the “other” portal posts record holiday sales highs.

“To be honest, we’re not afraid of Steam,” Bergquist said. “We think they are peaking now while the market is still very hardcore. … Once digital sales are superior to physical sales, we believe Steam will have a harder time remaining #1.

“Steam’s marketshare will shrink in the future and … GamersGate is well positioned as one of the digital distribution platforms that has strong momentum to gain marketshare.”

GamersGate considers itself a natural alternative to Steam, with Bergquist citing “premium customer support, a client-free experience, a robust reward program, and a DRM-friendly policy” as reasons gamers might choose the Paradox Interactive-founded portal over its major competitor.

“We know from the feedback we receive from customers, one of the reasons we have such great growth is because many gamers out there don’t like Steam and see Gamersgate as a better alternative,” he said.

The company has some hard figures to back up their claims: a 25 percent increase in repurchase ratio after the rewards program went live, and a catalogue of over 2,600 games, outweighing all comers.

GamersGate’s other competitors include Direct2Drive, Impulse, publisher’s own online stores, and smaller portals created by retail chains and interest sites.

GamersGate sales increased by 72 percent over the holiday period with some individual publishing partners seeing sales rise by up to 120 percent.

“Digital distribution is no longer a business development project for publishers; it’s an integral part of the sales organization,” the CEo said.

“They look at the greater revenue split they can get from digital as compared to physical, and it’s easy math to decide that they should focus on digital.”

Looks like the industry agrees; in its recent Q3 financials, EA made its intention to power on with digital sales more than plain.

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8 Comments

  1. On2wheels

    Steam still has the advantage of not requiring double the disk space like GG or D2D.

    #1 4 years ago
  2. osric90

    No one is afraid of Steam because everyone loves it no matter what, even if they are the competition. Once Steam gots SNES, PS1, Dreamcast, GB, GBC, GBA, PS2, XBOX, GameCube, NDS, Wii, XBOX 360, PSP, PS3 and now PSP2 games’ right… The world of gaming would be considered just “perfect” for everyone everywhere. Can you imagine? Having your Crash Bandicoot 3: Warped, Silent Hill 2, Gears of War, Heavy Rain, Uncharted 3: Drake’s Deception in one single account along with Half-Life 2: Episode Three?

    #2 4 years ago
  3. freedoms_stain

    I’m sure GamersGate will do raring trade undercutting Steam by a massive 4p on recent releases and over-charging for pre-orders…

    #3 4 years ago
  4. Uncontested

    I love when no name nobodies talk sh!t on the big dogs. Nothing like a yappy ass poodle barking at a rottweiler.

    #4 4 years ago
  5. ududy

    I prefer GamersGate and do most of my game shopping there. They have a great selection of titles, give you back 5 percent of all purchases back as store credit, and are not intrusive like Steam.

    #5 4 years ago
  6. back_up

    who cares
    valve made right decision of bringing steam to PS3

    #6 4 years ago
  7. blackdreamhunk

    I hear steam reach 1 billion

    Steam Rakes In Almost $1 Billion in 2010

    http://www.tomshardware.com/news/Steam-pc-gaming-digital-distribution-FADE-Call-of-Duty,12138.html

    #7 4 years ago
  8. Len

    Steam’s just great as far as I’m concerned. Does everything you need, why would I look elsewhere…?

    And of course I, like everyone else (admit it), love Valve…please some HL: Ep3 or HL3 details soon, pretty pls…? ;)

    #8 4 years ago

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