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Digital distribution is a major trend at CES 2011, witnessed not only by the number of devices that run downloadable apps and media, but also the number of companies trying to become gatekeepers of said content. Shawn Freeman, senior VP and GM of digital business of GameStop, was surveying the scene, too, taking note of all the new devices and distributions systems vying for breakout attention at CES.
I had a chance to speak with Freeman about GameStop's investment in digital distribution and where he sees the future of GameStop in a world that is increasingly abandoning physical media. Right away, we spoke of retailer-exclusive DLC, such as the specific Transformers that were only available for pre-orders of War for Cybertron at GameStop versus, say, Best Buy. "Having that exclusive content gives consumers reason to pre-order with us," said Freeman. However, when I countered that it can also prove frustrating for the gamer that wants access to different bits of retailer-exclusive DLC without having to purchase multiple copies of a title, Freeman suggested that perhaps in the future we'll see more opportunities to buy that content after an exclusivity window has closed.
GameStop's DLC initiative, though, extends well beyond just pre-order goodies. GameStop is now selling downloadable content on physical cards at its retail locations, such as Red Dead Redemption's Undead Nightmare add-on pack. According to Freeman, response to these has been largely positive. "It's better to give as a gift. It's a better use of money," said Freeman, citing it as a good alternative to just buying point cards and then dealing with extra points or funds you may not necessarily want to use in that console's ecosystem. Expect to see more of this at GameStop, particularly content like add-on missions and map packs rather than just extra weapons or character costumes. After all, as Freeman said, "We only have so much wallspace."
But there is a slight catch to downloadable content that seems at odds with GameStop's very successful used games business. How can downloaded full games or DLC be traded in for credit at GameStop? According to Freeman, "It is totally possible, but it may not be as popular as physical sales."
And besides, Freeman doesn't see physical media -- nor the importance of physical retailers -- dissipating anytime soon, even with Microsoft and Sony selling full games over their respective networks directly to the consumer. Freeman sees the limitations of hard drives on a console as a big reason physical media will continue to be very relevant. "When the largest hard drive you have is 250GB, you're not going to buy a lot of digital games."
About Nintendo, Freeman expressed that he was both "excited and hopeful" about the upcoming Nintendo 3DS handheld. He sees it, along with the success of Kinect and Move, as "an opportunity to reignite the industry."
Finally, Freeman and I discussed the further propagation of online stores. It's not just the App Store or Steam anymore. Connected devices, particularly TVs, are everywhere here at CES. Already, so many televisions and disc players have apps to stream content from services like Netflix and Pandora to the home entertainment system, completely bypassing a separate box. Is there room -- or even a need -- on connected TVs for a go-to aggregator of game content? Freeman sees how the GameStop logo could one day appear next to Netflix on television boxes as the storefront for on-demand games. "We're one of the brands people know. We're the best to understand what the consumer wants," said Freeman. "We'd love to be like the next Netflix for games."
source
I had a chance to speak with Freeman about GameStop's investment in digital distribution and where he sees the future of GameStop in a world that is increasingly abandoning physical media. Right away, we spoke of retailer-exclusive DLC, such as the specific Transformers that were only available for pre-orders of War for Cybertron at GameStop versus, say, Best Buy. "Having that exclusive content gives consumers reason to pre-order with us," said Freeman. However, when I countered that it can also prove frustrating for the gamer that wants access to different bits of retailer-exclusive DLC without having to purchase multiple copies of a title, Freeman suggested that perhaps in the future we'll see more opportunities to buy that content after an exclusivity window has closed.
GameStop's DLC initiative, though, extends well beyond just pre-order goodies. GameStop is now selling downloadable content on physical cards at its retail locations, such as Red Dead Redemption's Undead Nightmare add-on pack. According to Freeman, response to these has been largely positive. "It's better to give as a gift. It's a better use of money," said Freeman, citing it as a good alternative to just buying point cards and then dealing with extra points or funds you may not necessarily want to use in that console's ecosystem. Expect to see more of this at GameStop, particularly content like add-on missions and map packs rather than just extra weapons or character costumes. After all, as Freeman said, "We only have so much wallspace."
But there is a slight catch to downloadable content that seems at odds with GameStop's very successful used games business. How can downloaded full games or DLC be traded in for credit at GameStop? According to Freeman, "It is totally possible, but it may not be as popular as physical sales."
And besides, Freeman doesn't see physical media -- nor the importance of physical retailers -- dissipating anytime soon, even with Microsoft and Sony selling full games over their respective networks directly to the consumer. Freeman sees the limitations of hard drives on a console as a big reason physical media will continue to be very relevant. "When the largest hard drive you have is 250GB, you're not going to buy a lot of digital games."
About Nintendo, Freeman expressed that he was both "excited and hopeful" about the upcoming Nintendo 3DS handheld. He sees it, along with the success of Kinect and Move, as "an opportunity to reignite the industry."
Finally, Freeman and I discussed the further propagation of online stores. It's not just the App Store or Steam anymore. Connected devices, particularly TVs, are everywhere here at CES. Already, so many televisions and disc players have apps to stream content from services like Netflix and Pandora to the home entertainment system, completely bypassing a separate box. Is there room -- or even a need -- on connected TVs for a go-to aggregator of game content? Freeman sees how the GameStop logo could one day appear next to Netflix on television boxes as the storefront for on-demand games. "We're one of the brands people know. We're the best to understand what the consumer wants," said Freeman. "We'd love to be like the next Netflix for games."
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