...Valve’s Distribution Strategy: Introduction: Digital game distribution is the simplest, cheapest, most convenient way to sell games and has been possible for a decade. “Digital distribution accounts for 24% of [game] sales in the US, up from 20% in 2009” and is more profitable to game companies over physical sales (Okalow a, 2012). You may ask yourself: why are there still physical retailers if digital distribution is so much better? This is one of many problems in the current game retail industry we will be exploring. The Steam Client is a digital game retailer and a multiplayer and communications platform created by Valve Corporation in 2003. Steam has over 1500 games available and over 54 million active users and is estimated to control roughly 70% of the digital game market. Steam will be the future of game retail and it is positioning itself perfectly to do so. This paper will discuss the current state of the game industry and how and why it has gotten there. From there it will focus on how games are sold today and how retailers are positioning themselves for the future. Lastly the paper will dissect the Steam client and all it has to offer; specifically comparing it to current physical and digital retailers. As technology goes digital, entertainment media seems to be stuck in the physical past; at least for the time being. This is changing rapidly as more and more gamers are realizing the benefits of digital distribution. DFC Intelligence is forecasting that...
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...Valve’s Distribution Strategy: Introduction: Digital game distribution is the simplest, cheapest, most convenient way to sell games and has been possible for a decade. “Digital distribution accounts for 24% of [game] sales in the US, up from 20% in 2009” and is more profitable to game companies over physical sales (Okalow a, 2012). You may ask yourself: why are there still physical retailers if digital distribution is so much better? This is one of many problems in the current game retail industry we will be exploring. The Steam Client is a digital game retailer and a multiplayer and communications platform created by Valve Corporation in 2003. Steam has over 1500 games available and over 54 million active users and is estimated to control roughly 70% of the digital game market. Steam will be the future of game retail and it is positioning itself perfectly to do so. This paper will discuss the current state of the game industry and how and why it has gotten there. From there it will focus on how games are sold today and how retailers are positioning themselves for the future. Lastly the paper will dissect the Steam client and all it has to offer; specifically comparing it to current physical and digital retailers. As technology goes digital, entertainment media seems to be stuck in the physical past; at least for the time being. This is changing rapidly as more and more gamers are realizing the benefits of digital distribution. DFC Intelligence is forecasting that...
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...PC game "Personal computer game" redirects here. For video games in general, see video game. For other uses, "Computer Games" redirects here. For the album by George Clinton, see Computer Games (album). PC games, also known as computer games, are video games played on a general-purpose personal computer rather than a dedicated video game console or arcade machine. Their defining characteristics include a lack of any centralized controlling authority and greater capacity in input, processing, and output. PC games reached widespread popularity following the video game crash of 1983, particularly in Europe, leading to the era of the "bedroom coder". From the mid-90s onward they lost mass-market traction to console games before enjoying a resurgence in the mid-2000s through digital distribution. The uncoordinated nature of the PC game market and its lack of physical media make precisely assessing its size difficult. Contents 1 History 1.1 Early growth 1.2 Industry crash 1.3 New genres 1.4 Contemporary gaming 2 Platform characteristics 2.1 Fidelity 2.2 Openness 2.2.1 Mods 2.3 Dominant Software 2.3.1 Digital Distribution Services 3 PC gaming technology 3.1 Hardware 3.2 Software 3.3 Multiplayer 3.3.1 Local area network gaming 3.3.2 Online games 3.4 Emulation 4 Controversy 5 Computer games museums History Early growth Spacewar!, developed for the PDP-1 in 1961, is often credited as being the second ever computer game. The game consisted of two player-controlled...
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...●●● Introduction ……...………….……..………..….……………………………………………………………………………….. 3 External Analysis …………….…………….…………………………………………………………………………………….. 3 PESTEL Analysis ……………….……………………………………………………………………………………………. 4 Political Factors ……………………………………………………………………………………………………. 4 Economic Factors …………………………………………………………………………………………………. 4 Socio-Cultural Factors ………………………………………………………………………………………….. 5 Technological Factors ………………………………………………………………………………………….. 6 Environmental Factors ………………………………………………………………………………………... 7 Legal Factors ……………………………………………………………………………………………………….. 7 Five – Forces Model ……………………………………….……………………………………………………………. 8 Supplier Power ……….………….…………....………………………………………………………………… 8 Buyer Power ………………………...……..………………………………………….…………….…………… 9 Degree of Rivalry ……………………….………..……………………………………………………………. 10 Threat of New Entrants ……….………....……….……………………………………………………….. 10 Threat of Substitutes …………….……….……………………………………….………………………… 11 Conclusion ....……. ………………..………………………………………………………………………………………….. 12 Problems and Solutions …………………………………………………………………………………………… 12 Works Cited ………………………………………...…………………………………………………………………………... 14 Introduction Gabe Newell, a Harvard drop out, began working for Microsoft in 1983. Newell spent thirteen years at Microsoft and emerged as a “Microsoft Millionaire.” Newell and his co-worker Mike Harrington left Microsoft in 1996 to begin their own company. The inspiration came from another former Microsoft employee named Michael Abrash...
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...industry and gaming industry are both evolving at great speed. Retailers around the globe have opened up new opportunities for customers to shop via the web no matter where they are or what they are doing. When a customer wants to shop they can, day or night. With the gaming industry, the demands for online preferences are going. For GameStop, this means to evolve the business for consumers around the world. Implementing simple changes to their website for a more customer friendly shopping experience can only aid in GameStop continuing to be a successful retailer, while at the same time developing the technology side of the business. For GameStop to maximize its brick and mortar locations, the stores will need to capture leading market share of the new console cycle, grow digital sales, and apply retail expertise to the new technology added to the GameStop family. The Business GameStop's retail network includes 6,650 company-operated stores in 15 countries worldwide and online at www.GameStop.com. The network also includes: www.Kongregate.com, a leading browser-based game site, and a digital PC game distribution platform. GameStop offers customers the most popular game software, hardware, game accessories and PC products. On the brick and mortar retail side, GameStop is continuing to grow. According to Slack (2010), “The company sees its physical storefronts as the foundation of the company, but GameStop is well aware of the trend toward more digital content. Because...
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...latest technologies for desktops and laptops that are specialized for gaming, video editing and music editing. Alienware - History According to employees, the Alienware name was chosen because of the founders' fondness for the hit television series The X-Files, hence the theme to their products, with names such as Area 51 and MJ-12. Alienware was originally established to tap a niche in the high-performance game market, which then was not on the radar of the major manufacturers such as Dell. Since the high end game hardware was not widely distributed, the company's founders formed an OEM which sold personal computers with the highest performing hardware and settings according to benchmarks. The corporation was started with $10,000 out of a garage by Nelson Gonzalez and Alex Aguila . The corporation grew despite having no funding and has reached sales in excess of 170 million dollars annually as of 2005. Alienware - Operations As of FY 2005, Alienware brought in upwards of $170 million USD in annual sales, while minimizing expenses to aid an international expansion initiative launched in 2003 to maintain a presence in Australia, Canada, France, Germany, United Kingdom and Costa Rica. Alienware is a member of the Better Business Bureau of South Florida. In 2002, Alienware distributed their systems through Best Buy and CompUSA at retail locations. Because of complications with that method of distribution, Alienware decided to better service the customer via direct sales and...
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...Spain, Sweden and Switzerland. GameStop is one of the few brick and mortar stores left that still physically sells video games even with the rise of digital downloading. In the video gamingg industry, the rise of digital downloads for games has created a ripple effect to the brick mortar stores that used to be the only authority in terms of purchasing a new game. GameStop has found a compromise by allowing the purchase of digital vouchers for the products in their physical stores. This strategy has served the company well in the past years but with the rise of the next console generation (PS4 and Xbox one), and the consoles both focusing more on digital only content, the company will have to bolster their strategy to keep customers visiting their stores. GameStop merging digital to retail by S.R. Thompson explained how GameStop in 2011 created a four part plan to integrate digital content and service along with its already established buy/sell/trade strategy. The four parts were the creation of GameStop.com, the creation of the reward service Powerup Rewards, the promotion of selling digital content at the stores and the acquisition of multiple gaming services/websites like Kongregate and Jolt. GameStop finds digital success by Connie Gentry was an interview with GameStop's current general manager of digital distribution,...
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...While physical distribution is an asset for Amazon, it is also trying to be a dominant player in the digital distribution of content. Do you think this is a good strategy? Why? Why not? Nowadays we can see a fast development of distribution channels and intake of digital content. We have entered a new period of IT technologies where digital information is playing one of the leading roles together with internet, computer technologies, mobile telephony and evolution of mobile devices. The demand of entertainment and informational content (electronic books, social networks, music, games and video media) spreads through the countries together with mobile devices and PC distribution and becomes more and more vital. You can daily feel its influence on yourself as well. Being a modern person you want to be always available and “keep one's eye on the ball”. Internet became a “must” access resource towards information. We use our mobile phone not only for the voice communication but also as an access to different digital contents (music, video, e-books just to read and for studies, etc.) and social networks (to connect friends and colleagues). To have a better understanding let’s see a J’son & Partners Consulting brief overview on digital media content market, sales via internet and other remote communication channels (distribution via physical devices have not been considered). According to J’son & Partners Consulting research key global digital content market...
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...changes in entertainment today is video games. There are now many forms to video games, virtual reality, consoles, PC gaming, simulators, and sports that are now controlled by body in the consumers very own living room. Video games have easily rivaled the video industry and also contribute to movie interests. Movies are being made after video games and games are being made after books, although the biggest and largest difference to the movie industry compared to video games is the after the point of sale distribution. What brings this very large difference between the two is the internet. Once the Internet was introduced to the gaming consoles at large, consumers were given opportunity to extend content. With the industry growing as large as it has and the internet bringing in these new opportunities, there are now politics, large and vocal gaming, and a larger hunger for money just like the video environment. Extended content is destroying the future of gaming and the standard price for digital content should not be set to a fixed full price. When video games were first introduced they were distributed physically by cartridge and floppy discs. This process included the normal investments like shipping, boxing, box art, booklets, and other added objects or information with the games themselves. Today games are distributed largely as virtual data. With digital data also brought new forms of objectives. The video game industry strives to keep games from being resold to places...
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...Company: Activision Blizzard, INC. (ATVI) PESTLE 1. Political Pg. 10 – Our products are sold internationally on a direct-to-retail basis, through third-party distribution and licensing arrangements, and through our wholly-owned European distribution subsidiaries. We conduct our international publishing activities through offices in the United Kingdom ("U.K."), Germany, France, Italy, Spain, Norway, the Netherlands, Sweden, Australia and Ireland. • Activision Blizzard Inc. is an internationally traded company and most of its revenue is generated from foreign trade. Therefore it is subject to various foreign and domestic laws. Fluctuations in these laws such as increased tariffs, duties, transportation costs and instabilities in the currency exchange rates can adversely impact company’s operations in the foreign market. 2. Economic Pg. 13 – Our products involve discretionary spending on the part of consumers. Consumers are generally more willing to make discretionary purchases, including purchases of products like ours, during periods in which favorable economic conditions prevail. • Consumers purchasing trends have a direct relationship with economic condition. Therefore, current economic condition and global recession is likely to reduce consumer spending on the products which can have a negative impact on company’s operations and financial position. 3. Socio-cultural Pg. 10 –We often seek to maximize our worldwide revenues and profits by releasing high-quality...
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...new products and services to game developers, publishers and gamers themselves. These are the areas that will build out the industry as it undergoes significant growth. • A Quick Snapshot of Our Identified Areas of Interest • Online Games and Platforms. Few online games have historically been venture funded and most are subject to the same “hit or miss” market adoption as console games, but as this segment grows, an opportunity for leading technology publishers and platforms will emerge. New developers will use these technologies to enable the faster and cheaper production of online games. The developers of new online games also present an opportunity as new methods of gameplay and game genres are explored. Wireless Games. Mobile gaming is projected to be a large market in the coming years and this has led to its...
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...new products and services to game developers, publishers and gamers themselves. These are the areas that will build out the industry as it undergoes significant growth. • A Quick Snapshot of Our Identified Areas of Interest • Online Games and Platforms. Few online games have historically been venture funded and most are subject to the same “hit or miss” market adoption as console games, but as this segment grows, an opportunity for leading technology publishers and platforms will emerge. New developers will use these technologies to enable the faster and cheaper production of online games. The developers of new online games also present an opportunity as new methods of gameplay and game genres are explored. Wireless Games. Mobile gaming is projected to be a large market in the coming years and this has led to its...
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...Microsoft’s XBOX 365 Portable Gaming Device Marketing Plan Jason Hudson MKTG522 / Herbig 10/19/2012 1.0 Executive Summary Are you tired of playing “Angry Birds, Words with Friends, or Song Tune on your mobile phone…bored with your iPad? Are your kids fed up with beating Mario in races and his 3D worlds? Ever wanted to take the live-action first-person shooter, “Call of Duty” or “Madden” on the road and play against friends during a road trip or a long flight? Well guess what? Us…good folks here at Microsoft have been working day and night to on some monumental news!!! Microsoft’s ambitions have been nothing short of amazing and being a huge pioneer in the IT industry, dating back to its inception in the early 1980’s. Microsoft is the world’s number one leading in software development and has controlled an overwhelming share of the personal computer operating system market. Microsoft’s products, do not stop at the development of software, nor operating systems; the company supplies the world with a number and variety of different types of products, including their office software, Zune (digital music player), CRM applications, sever and storage software, and last but not least XBOX as well as, the XBOX 360 video gaming consoles. Now that we are entering 2013, XBOX has stood by idle, in the portable gaming device market as we watched Sony & Nintendo dominate their way through this particular gaming market. Well now!! Microsoft has been absence for far...
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...Industry Overview 2.1 Scope (Products/Customers/Regions) The interactive gaming industry is comprised of manufacturing and developing of home entertainment software for the PC (including Macintosh), console gaming systems (Xbox 360,Nintendo Wii & GameCube, Sony PlayStation 2 & 3), portable gaming systems – PlayStation System Portable, Gameboy Advance, Nintendo DS), online gaming (web and Java based software), and mobile platforms (iPod, iPhone and Smartphones)6. In this way, this industry is very much global in terms of the development of games to the end users of software that are comprised of hardcore and casual gamers across many multiple platforms. In terms of the United States interactive software market, it “generated total revenues of $9.5 billion in 2007, which represents a compound annual growth rate (CAGR) of 4.8% for the six-year period spanning 2002-2007”7. It is interesting to know that “console games software sales represented 82.6% of the market’s overall value. In comparison, the sales of personal computing games represented 17.4% of the market’s aggregate revenues”. In this way, development of new hardware sales usually drive the demand for development of high performance gaming software, as illustrated below9. As depicted previously, the future market value of this industry in the United States is expected to grow by 5% for the next five years, and total market value of $10.3 billion by the end of 201110. In comparison, the Asian market...
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...or at least they were one of the first that used “e-novations”. Through the years, they have succeeded in being one of the most important company in this sector. Many factors have to be pointed out. First, the fact that they have created one of the best games ever made which is Half-Life. It allows them to have a world-wide recognition. Secondly, the Valve platforms, with its large numbre of games available, the exchange of data and information between players and users, have made them the first online retailer for video games. But Steam is not only benefic for players and users. It is also a way for small companies, small producers and developers to launch their game. The process is simple, quick, and less expensive than other distribution channel. In effect, they don’t have to produced CDs, they don’t have the transportation costs to pay, they don’t have the same taxes and they enjoy the Steam’s recognition being on...
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