Steam, an online game purchasing service
People buy movies and games and music. Most of the time, it’s a hard copy from the store. But instances of buying and downloading online are increasing. The first immediate complaint of digital purchases is that you don’t get a real product. I know I speak for many people when I say that I like to have a tangible purchase when I buy something. I enjoy ripping off the factory wrap, reading the back of the DVD case, and putting the media on the shelf with the rest of my collection. But despite this single shortcoming, it is easy to see that digital distribution has much to offer, and that we will certainly see more of it in the future.
You’ve never heard of buying and downloading online, you say? Don’t know what services there are, say you? How about iTunes, for your digital music needs. They also have movies and TV shows, for both rental and purchase. Zune Marketplace covers music as well. Steam, or Steam Powered, is an online service that provides PC games. Their catalog ranges from $5 indie titles to new AAA releases. Direct2Drive is another game retail service. Small console games are provided on the Xbox Live Marketplace, Playstation Network Store, and the Wii Store Channel. Even Amazon.com is now selling $10 casual download games.
Buying and downloading online is almost....too easy
The biggest thing about buying digital is that it’s convenient. All you need is a credit card and something to kill time while the file downloads. No car? Really cold outside? Down with the flu? Worry not, the internet is there for you. You sign up for an account, you add what you want to your cart, and then you pay. One progress bar later, you’re watching a light comedy, or finishing the tutorial of a game. When the next game in your favourite series launches, you don’t have to worry about Best Buy selling out of copies. There are infinite copies of it up on Steam, for the same price. In fact, you save on gas!
Prices of products also drop frequently. Although I’m not clear on the business side of this business, releasing media digitally undoubtedly cuts out many middle-man costs. As a result, products can go for cheaper online, without seeing a loss of revenue. For example, the recent Left 4 Dead sale on Steam saw the game go from $50 to $25 for a weekend. Valve head Gabe Newell stated that the sale increased the game’s sales by 3000%. Only pure traditionalists could resist the benefits of digital media. iPhone games are a similar story. iShoot developer Ethan Nicholas makes a reported average of $37 000 PER DAY for his $3 game. The only money not going to Apple and Ethan Nicholas is the funding for the bandwidth required to host the game in the App Store. And that’s pennies.
Although the lack of a disc may be seen as a downside, it is also a beneficial part of digital distribution. Many indie artists, be it music or game related, would not have their work published under normal circumstances. Finding a publisher willing to take a significant risk and print copies of their material proves to be difficult. However, with online purchasing, the risk for a developer to put upload the game or album to a distribution service is minimal. If the product doesn’t sell, all that is lost is small fees that are a part of the procedure. There isn’t a warehouse of 100 000 dusty copies of the product. Specific to games, since online services are flexible, developers don’t have to create full sized games and charge $60. Instead, they can make small, focused games, and retail them for whatever they want.
Digital distribution has encouraged more creative and courageous endeavours...
Two recent examples are Flower and Noby Noby Boy, both out in the Playstation Network Store. These games are $10 and $5, respectively. In Flower, you control the wind, as you blow petals through lush landscapes, collecting petals from other flowers. In Noby Noby Boy, from the creator of Katamari Damacy, you are essentially a long worm called BOY. And you eat things. And grow very big. It’s a game difficult to describe in words, so if you want to learn more there’s a gameplay video here. The point is, both games are based on very creative but very unconventional premises. It can be said that it would’ve been difficult for the developers of these games to find publishers to release the games on discs. And being allowed to make a small game content-wise provides the opportunity for developers to explore new game ideas without having to create a full $60 game.
...and it has paid off for both artists and consumers.
It’s a similar story in music as well. Some artists who gained fame on Youtube or Myspace have released material on iTunes. A good example is Ronald Jenkees, Youtube keyboard shredding phenom. He does have a CD out, but it’s not one you’d find at HMV. It is, however, available digitally on iTunes. David Sides is another Youtube keyboardist, who does piano covers. They are two artists who started uploading videos just for fun, probably. Through iTunes, they’ve been able to increase their popularity and make some money on the side. And through digital distribution, their fans have been able to purchase their work and show their support for their artists.
However, people seem to be holding back from digital distribution. In 2008, only 1% of console games purchased were digital (non disc). PC games are a different story. Digital Rights Management, or DRM, has been a hot topic of late. Besides the enjoyment of a tangible disc and case, DRM is probably one of the larger barriers that people face when purchasing digital media. Though the DRM on media may vary, it often involves limited sharing abilities. Buying something with strict DRM integrations would mean that not only are you not getting a hard copy of the media, you also cannot use it with total freedom.
Whether you like it or not, whether you have bought digital or not, whether you think David Sides is a sellout or not, digital distribution’s share of the market is growing. PSP2 rumours state that it won’t even have a disk slot; all games will be purchased digitally. With increasing internet usage and speed, buying digital media is making more and more sense. It is convenient, eco-friendly, and supportive of creativity. With excellent marketing, which Steam has demonstrated, digital distribution could shape media culture sooner than you think. Digital distribution is nothing new, but it’s prominence is growing.
Double True 