14 DAY TRIAL // The concept of DLC might not go very well with the idea of physical distribution, but that doesn't mean that the giant video-game retailers are backing away from the concept. If anything, GameStop, one of the biggest physical distributors, believes that it has to educate the public regarding the extra bonuses that DLCs bring, and that the idea in itself is a good thing for the company. More so, GS doesn't see digital distribution and downloadable content as much as a threat as it does giant retailers like Wal-Mart in the US, or many other game-selling dedicated firms in Europe.
Speaking at the SMU's Game Business Law conference, GameStop's COO, J. Paul Raines, told GamesIndustry.biz that "The only way a company like ours survives is being dedicated to the category. Downloadable content is a good thing because it enhances and extends games." He further explained that the DLC market was rather small at that moment and that it faced a lot of difficulties accessing the additional content, but this was exactly where GameStop fit into the picture, becoming a helping hand for gamers.
"That business could grow medium double digits today," Raines said. "Customer acquisition continues to be a huge part of the spend in this business." And since this is something that everyone agrees with, with digital distribution on the rise, some believe that the retailer is heading towards an icy slope, with its sales on a steady and irremediable decline. But that doesn't mean that GameStop itself feels like it's in any kind of peril. "Rumours of our demise have been greatly exaggerated," Raines assured us. "We'll release financials in a few weeks, so you'll see if we're still in business."
While GameStop is one of the oldest and biggest American video-game retailers, its main selling point, that of physical distribution, is beginning to face strong adversities. Digital distribution is steadily on the rise, with the accessibility of digital content being the main drive behind the growth. Not having to get out of the house to purchase a title or even pop in a DVD into the drive to install it is something that GameStop is going to have a hard time competing against.