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‘It’s too late for game retailers to start offering digital downloads’

Dominic Sacco
‘It’s too late for game retailers to start offering digital downloads’

Online retailer Gameseek has warned other boxed game retailers that it’s too late to join the digital download market.

The website – which has been online since 2000 – scrapped its download service earlier this year due to low demand.

MD Stephen Staley told MCV that the success of established services such as Steam and Xbox Live means the digital window of opportunity has closed for physical retailers hoping to crack into that space. 

“It’s too late for traditionally boxed game retailers to start thinking about a download service, as known services such as Steam and Xbox Live are way ahead,” he said. “The downloads only accounted to about 0.1 per cent of our business so it was not a big loss. However, we expected it to do better.”

Gameseek went live with game downloads in January 2008 in parnership with specialist online service Metaboli, before scrapping the offering this year. 

“We tried to push the service but there just was not enough demand for downloading games. We receive a lot of traffic to our site so we thought it would have been more successful than it was, but the service never really took off.”

The news comes after a host of independent retailers – including ShopTo and Barkman Computers – told MCV they wanted to add downloadable games to their product range.

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Tags: video games , Digital , downloads , gameseek , staley

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2 comments

I think that this industry of digital gaming is just starting.

The first wave of early adopters, gamers, digital distributors and (new) retailers battle is about to end. Companies that don’t have the right business model will not survive or are almost drowning by burning too much money each month.

Also offering similar service as competition doesn’t seem to be a good business model online you need to be different. That was a hard job with only white label solutions available in the market.

Today you see that billions are spend online for this kind of entertainment and even for products like music and film consumers are paying (again). Maybe not the early adopters or tech savvy anti-consumers who download illegal, but there is suddenly a whole new and fresh market of moms and dads and not techie people that use and pay for rdio, spotify, netflix and others.

This shift still has to happen in the games industry ...

my humble opinion of course,
Hendrik


Hendrik van Iterson

Hendrik van Iterson INDUSTRY
Jul 15th 2011 at 10:02AM

0 1

I think the other problem is consumers don't want to have to install yet another digital download service. I don't want to have to think about whether I need to start up Steam, or Origin, or whatever else there is just to play a game.

Just let me play the game.

Leigh Makewell

Leigh Makewell STUDENT
Jul 15th 2011 at 2:22PM

0 0