Out of the box
SAN JOSE, Calif. — Walk into any store that sells or rents video games, and chances are you’ll find only a few shelves, if any, for personal computer games amid the aisles dominated by console software.
The PC still has a solid future as a gaming machine given the rising popularity of games played online — for both casual games like “Tetris” and intricate multiplayer games like “World of Warcraft.”
But the way in which people get their games is getting a makeover as game makers experiment with online distribution.
Some companies are even betting that PC gaming is on the cusp of a download revolution, much like its entertainment counterparts in music and video.
“It’s just another evolution of retail commerce of what in the end is a digital product,” said Jamie Berger, general manager at IGN Entertainment.
IGN owns Direct2Drive, one of a growing number of online stores for downloadable PC games. At its inception in September 2004, only four game publishers were on board; today, the Web site carries about 130 games, including titles released the same day they hit physical store shelves.
While not disclosing specific figures, Berger said sales have been tripling every month.
Meanwhile, Electronic Arts Inc.’s Pogo.com, Comcast Corp. and Yahoo Inc. are offering games-on-demand services in which computer users buy subscriptions to access and download PC games.
As more households get high-speed Internet connections, downloads become more practical.
And judging by the success of Apple Computer Inc.’s iTunes Music Store, more consumers are getting used to the notion of digital-only versions of media.
For gamers, downloads can be more convenient and provide instant gratification.
That’s why market researchers are seeing these numbers:
•Traditional shrink-wrapped PC games in the U.S. retail market are on the decline, falling to $953 million in 2005, a 36 percent drop from $1.5 billion in 2001.
•Internet-related game revenues in North America, including online purchases, subscriptions and advertising, rose to $1 billion in 2005, more than six times the $160 million in 2001.
•IDC predicts U.S. sales of PC game downloads will almost double this year to about $500 million.
Digital distribution “is a very natural fit” for online games, said Marc DeForest, co-founder and lead designer of S2 Games LLC.
Online sales are good for small, independent game developers like S2, which otherwise have to compete for retail shelf space with blockbuster games from larger game makers, he added.
Video game specialty retailers like GameStop and EB Games still carry a selection of PC games, but stores like Blockbuster don’t even bother and carry only games made for consoles, which dominate the industry.