Thursday, September 17, 2009

Whining video games retailers

Retailers has been attempting to boycott the launch of the PSPgo. As many of you would know, the PSPgo will eschew physical distribution in favour of downloads. This has its pros and cons, of which I would not go into today - but you can understand why some retailers are upset about it. Still their excuse don't wash with me. Plenty of retailers like John Lewis sells products like Walkman and E-book readers but do not have the means to distribute the content and they have no issues with it. I also suspect part of the reason why the PSPgo is so expensive is because a larger revenue would go towards retailers than other consoles anyway. Regardless, here is one genius's (ShopTo) take on it:
Sony has decided to cut publishers and retailers for the software of the PSPgo and deal direct with developers, giving them a 70 per cent margin for any items sold on Sony PSN. I believe if they had lowered that to 50 or 60 per cent, and given the opportunity to online retailers, it would have enjoyed greater success and retailers would attempt to promote the console to the market. (source)
Statements like this makes me angry, and yet news that Sony is giving them developers a higher profit margin is brilliant - for everyone. I love physical copies of games, but recognise that there is plenty of advantage in moving towards a digital distribution platform, and if it meant that developers (the people who worked hard to make the games) earning more than soulless retailers - then so be it. For ShopTo (who I never heard of outside of its affiliate partner Eurogamer) to even suggest that developers should get a lesser cut to prop up their backward business model is ludicrous and downright insulting.

What I find amazing here is that video games retailers are unwilling to adapt despite the lessons from the music and automobile industry. This is a free market and yet they complain when things change - much like the idiots who run certain financial institutions to death. Silly people really, and I hope they shrivel up and die a slow horrible death. If retailers like ShopTo can't take it, then I suggest exiting the market as nobody will be bailing them out. These days Amazon or Play.com is all that matters anyway, and if they do not have a problem (even GAME does not), then I do not see any reasons why Sony should be worried.

The PSPgo is due out next month. Register early and you will get a free copy of Gran Turismo as well.

1 comment:

Jon said...
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