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Gamefly: 75% of digital retailers don’t justify publisher costs

Wednesday, 25th April 2012 23:40 GMT By Brenna Hillier

Most digital retailers aren’t worth a publisher’s time, Gamefly co-founder Sean Spector has claimed.

Speaking to MCV, Spector said he didn’t expect to see any more digital retailer launches, because publishers aren’t keen on working with them.

“I don’t see there being more and more digital download retailers because for publishers, it is a lot of work for them,” he explained.

“There’s Steam, there’s Gamefly, there’s Origin, there’s Amazon – those are the bigger brands – and then there’s the smaller brands like Green Man Gaming and GOG.

“The publishers don’t want 50 digital partners. That’s too much to manage. The reality is, the bottom 75 per cent won’t bring in enough revenue to justify the effort. It’s a lot of work.”

Gamefly is best known for its rental service, but it also manages Direct2Drive, having purchased the digital retailer last year and used its technology to built up Gamefly PC, now in open beta.

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4 Comments

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  1. GrimRita

    Nothing like some hot air to push your own shitty DD service. he is probably right, which is why Steam is king. Its more than just a digital service – its a community for PC gaming.

    #1 2 years ago
  2. DSB

    They offer double the margins compared to retail, and exclude the used market so I’m pretty sure publishers aren’t angry with digital just yet.

    It certainly isn’t very classy for a competing player to make that kind of statement though. If the publishers were speaking for themselves, that might carry weight.

    #2 2 years ago
  3. Talkar

    @1
    I wouldn’t say Steam is King. It is definately the most used service for most newer games i think, but if we’re speaking older games like Baldur’s Gate, then i would have to say that GOG is king. I comes down to ones point of view. And i agree with DSB that i don’t think publishers are angry with the digital services just yet.

    #3 2 years ago
  4. endgame

    And this is why publishers should die and online digital services should thrive. I think EA, Activision, Ubisoft and a few others (like them) should disappear and their places be taken by Steam, gog.com and a few others (like them). Our money should end up in the hands of people who reinvest in game development and not in the hands of people who invest in huge ass villas, super expensive cars and holidays in exotic resorts. These people (the latter category) make me sick. They are one of the reasons some developers are dissolved and some good games get canned.

    #4 2 years ago