3Suns
12-10-2008, 05:12 PM
I suppose I need to preface this article with the statement that it is really something out of the blue, and specifically focused on some unknown future. However, I have an idea of what things could be like, and I am excited about the opportunities that game console makers have before them. Let me just add, I don't think that Blu-Ray is going to become the next disc format, replacing DVDs like DVDs replaced VHS. I think before Blu-Ray really takes hold, digital distribution will surpass it in popularity. It is with this in mind, that I begin.
Microsoft is doubtless already in the planning stages of their next gaming machine, even though the sales of such a machine are a minimum of 3, and possibly as far as 5 or 6 years away. One of the issues they will be discussing is what should be done about the optical disc drive. I am persuaded that it is in Microsoft's best interest (though not necessarily in the customers' best interest) to abandon all forms of physical media altogether. They should include a large capacity hard drive but not include any form of media reading device at all.
The Distribution
Reasons for Online Digital Distribution (and Excluding An Optical Drive)
1. It is sustainable. The number of XBL paying subscribers is now pushing 15 million, and there are millions more that are silver (i.e., connected and downloading demos, movies, etc., but not paying for the full game services). At the time of the next gen machine, that number should be much higher. It isn't a stretch to think that most of those subscribers will transfer their accounts to the next gen machine when they actually buy it. Most of the gamers in the next generation will be hooked up to the Internet and capable of downloading whatever is offered. Therefore, the argument that consumers will not have access to purchasing the games via the Internet is no longer relevant. They should do it because it would be sustainable/profitable. It would work.
2. It would save Microsoft significant dollars in manufacturing the console. In turn, Microsoft can deliver the machine at a much lower price. They may be able to enter the market with a price of $250 or even the coveted an magical $200. Furthermore, the actual machine itself could be considerably smaller and would have much greater design flexibility because it wouldn't need to accommodate the optical drive.
3. It would allow Microsoft even more creativity in the marketing of their products. While the software itself would be downloaded, Microsoft could offer a varitey of physical packages to be purchased at stores. Packages could be offered both with and without the software download (redeem) code. SKUs with the software download code, could be sold at traditional prices of $50 or $60. Those without the software, for customers who bought the software directly from the "Marketplace" but still want the physical box and manual, could be sold for $10. (Please see below for SKU ideas.) Furthermore, all of these products could be sold weeks in advance of the game's release.
4. It would increase revenues for both publishers and developers because it would completely shut down the second-hand market, in addition to the actual manufacturing costs involved in creating discs.
5. It would give developers an added month of development time, because the phase of "going Gold" would be removed from their schedule.
6. It would get the product to the customer faster, with less hassle, and would help to prevent any undesirable consequences of the midnight release sales (such as manslaughter, murder, and mayhem).
7. It would allow for more "impulse" sales as customers would always be just one click away from purchasing any game.
The Marketing
Some Example SKUs
Every item (box) for sale in stores should include but not be limited to:
1. a "collectable card" with the actual redeemable code for the software (if it is the software-included package).
2. a game manual
3. a plastic or metal fob/doohickey/toy for attaching to key rings, handbags, or even necklesses.
4. a car window decal
5. a single sheet of stickers for putting on anything and everything
Additional possibilities - a small artbook, picture, or anything else that would fit into the box. Also, personally, I think the box should be smaller than the current DVD boxes and should be standardized, with Limited Editions being double or triple wide to accommodate the Limited Edition goodies.
Things to Consider
Should Microsoft create separate accounts for purchases and for XBL gaming? Perhaps even a Master account under which gamers could have several XBL accounts. This would protect the consumer from losing all his/her games should their XBL account be banned. It could be marketed in such a way as to appease those who would complain about the impermanence of the digital distribution model.
Mini-FAQ
The Internet is too slow, which means waiting for the game to download, which means delayed delivery.
Advanced downloading a la Steam. By the time the launch minute arrives, everyone already has that puppy on their drive from a couple of days ago. They just need to unlock it.
Let's use flash drives instead of discs!
That is just going back to the cartridge of the eighties and ninties. They are more expensive than disks, and even if they weren't, it is a technological step backwards. Similarly, reusable flash drives - why bother? In fact, if it is reusable, then you aren't even getting an actual object but you still have the hassle of having to wait outside your game retailer at midnight, taking your life in your hands, and missing out on sleep or even gaming time while you haul your sorry ass back home.
I want a physical object to hold and to cherish; the retailers do to!
That is what my marketing section is all about. Please check that out again, because the items I have listed are far more than what people are currently getting when they buy a game (with the exception of the disc itself), nor, are the possibilities even limited to what I have suggested. So, aside from the game itself, we are coming out WAY ahead.
Also, as an example, consider Castle Crashers. We all "picked up" that puppy without hesitating. It was easy, and we never have to put it in the tray, ever again. It is always on the hard drive, ready to roll. This whole installing games on the hard drive is useless. Every time I want to switch games, I STILL have to get up to put in the dongle (The DVD itself). Give me goodies, but give me IP goodies, not the game disc (which can be scratched, and broken, and lost) instead. Stickers, decals, fobs, art books, figurines, on the other hand, that stuff is fun. Either that, or let me get my games for the difference that it costs to provide me with those space taking boxes and inadequate manuals.
What are your thoughts?
Microsoft is doubtless already in the planning stages of their next gaming machine, even though the sales of such a machine are a minimum of 3, and possibly as far as 5 or 6 years away. One of the issues they will be discussing is what should be done about the optical disc drive. I am persuaded that it is in Microsoft's best interest (though not necessarily in the customers' best interest) to abandon all forms of physical media altogether. They should include a large capacity hard drive but not include any form of media reading device at all.
The Distribution
Reasons for Online Digital Distribution (and Excluding An Optical Drive)
1. It is sustainable. The number of XBL paying subscribers is now pushing 15 million, and there are millions more that are silver (i.e., connected and downloading demos, movies, etc., but not paying for the full game services). At the time of the next gen machine, that number should be much higher. It isn't a stretch to think that most of those subscribers will transfer their accounts to the next gen machine when they actually buy it. Most of the gamers in the next generation will be hooked up to the Internet and capable of downloading whatever is offered. Therefore, the argument that consumers will not have access to purchasing the games via the Internet is no longer relevant. They should do it because it would be sustainable/profitable. It would work.
2. It would save Microsoft significant dollars in manufacturing the console. In turn, Microsoft can deliver the machine at a much lower price. They may be able to enter the market with a price of $250 or even the coveted an magical $200. Furthermore, the actual machine itself could be considerably smaller and would have much greater design flexibility because it wouldn't need to accommodate the optical drive.
3. It would allow Microsoft even more creativity in the marketing of their products. While the software itself would be downloaded, Microsoft could offer a varitey of physical packages to be purchased at stores. Packages could be offered both with and without the software download (redeem) code. SKUs with the software download code, could be sold at traditional prices of $50 or $60. Those without the software, for customers who bought the software directly from the "Marketplace" but still want the physical box and manual, could be sold for $10. (Please see below for SKU ideas.) Furthermore, all of these products could be sold weeks in advance of the game's release.
4. It would increase revenues for both publishers and developers because it would completely shut down the second-hand market, in addition to the actual manufacturing costs involved in creating discs.
5. It would give developers an added month of development time, because the phase of "going Gold" would be removed from their schedule.
6. It would get the product to the customer faster, with less hassle, and would help to prevent any undesirable consequences of the midnight release sales (such as manslaughter, murder, and mayhem).
7. It would allow for more "impulse" sales as customers would always be just one click away from purchasing any game.
The Marketing
Some Example SKUs
Every item (box) for sale in stores should include but not be limited to:
1. a "collectable card" with the actual redeemable code for the software (if it is the software-included package).
2. a game manual
3. a plastic or metal fob/doohickey/toy for attaching to key rings, handbags, or even necklesses.
4. a car window decal
5. a single sheet of stickers for putting on anything and everything
Additional possibilities - a small artbook, picture, or anything else that would fit into the box. Also, personally, I think the box should be smaller than the current DVD boxes and should be standardized, with Limited Editions being double or triple wide to accommodate the Limited Edition goodies.
Things to Consider
Should Microsoft create separate accounts for purchases and for XBL gaming? Perhaps even a Master account under which gamers could have several XBL accounts. This would protect the consumer from losing all his/her games should their XBL account be banned. It could be marketed in such a way as to appease those who would complain about the impermanence of the digital distribution model.
Mini-FAQ
The Internet is too slow, which means waiting for the game to download, which means delayed delivery.
Advanced downloading a la Steam. By the time the launch minute arrives, everyone already has that puppy on their drive from a couple of days ago. They just need to unlock it.
Let's use flash drives instead of discs!
That is just going back to the cartridge of the eighties and ninties. They are more expensive than disks, and even if they weren't, it is a technological step backwards. Similarly, reusable flash drives - why bother? In fact, if it is reusable, then you aren't even getting an actual object but you still have the hassle of having to wait outside your game retailer at midnight, taking your life in your hands, and missing out on sleep or even gaming time while you haul your sorry ass back home.
I want a physical object to hold and to cherish; the retailers do to!
That is what my marketing section is all about. Please check that out again, because the items I have listed are far more than what people are currently getting when they buy a game (with the exception of the disc itself), nor, are the possibilities even limited to what I have suggested. So, aside from the game itself, we are coming out WAY ahead.
Also, as an example, consider Castle Crashers. We all "picked up" that puppy without hesitating. It was easy, and we never have to put it in the tray, ever again. It is always on the hard drive, ready to roll. This whole installing games on the hard drive is useless. Every time I want to switch games, I STILL have to get up to put in the dongle (The DVD itself). Give me goodies, but give me IP goodies, not the game disc (which can be scratched, and broken, and lost) instead. Stickers, decals, fobs, art books, figurines, on the other hand, that stuff is fun. Either that, or let me get my games for the difference that it costs to provide me with those space taking boxes and inadequate manuals.
What are your thoughts?