The speedy and seismic shift towards digital retail that has enveloped the music sector is unlikely to be replicated in the games industry according to Take-Two CEO Ben Feder.
“While an ever-growing segment of our fans are comfortable with acquiring content digitally, the retail channel will continue to play a valuable role in reaching the majority of our fans,” the exec told MCV in an exclusive interview.
“Overall, I believe that digital distribution won’t cannibalise retail sales of console games in the short-term. This isn’t the music industry all over again. Our industry has some of the best content protection via the consoles, which helps maintain the value of our IP.”
Feder added that history has shown that new formats typically expand markets rather than decimate them.
“As you look at the history of the entertainment industry, new platforms have grown, not cannibalised, existing markets,” he explained.
“VHS recorders almost doubled the size of the business for movie studios, despite fears that home entertainment would cannibalise theatrical revenues. Cable and pay TV had a similar effect for TV shows and movies. I believe downloadable content will ultimately grow the business for games publishers.”
To read MCV’s full interview with Ben Feder, click here.