1C on Steam v. Retail

November 30, 2010 -

Darryl Still, international publishing director for PC publisher 1C, writes an editorial in response to an MCVUK report ("Retailers blow off Steam") where brick and mortar games retailers in the UK said that they might ban games that have support for Steam built into them.

In his editorial for MCV, Still talks about how his company had the foresight to see three years ago that owning the digital rights to the games it publishes was important. At that time 1C decided that it needed to secure the digital rights to all the games it publishes. That decision has been very lucrative for the company.

But the most important take-away from this editorial is that 1C makes more money via digital distribution than it does at traditional retail, and the experience, turn-around time and costs of doing business are much more reasonable.

Here's an interesting bit on how retail does not go the extra mile for some publishers:

 

What is more surprising is the reaction of retail now. I have read it described as the reaction of a small child who threw his toy away because he no longer wanted it, but started screaming as soon as another child picked it up to play with. The metaphor works perfectly, especially in the light of the excuse I heard on numerous occasions.

'There is no demand' went the mantra. But is this really true? Not in our experience.

I remember fondly the meeting in my office with a red-faced publisher who was explaining why their initial order from a major retailer for one of our new releases was just 30 units. At the time I had my browser open on the Steam product data page, which updates sales numbers every few minutes.

"They have taken one unit for each of their top 30 stores" he told me. "There is just no demand from their customers."

I glanced at my screen, hit refresh and advised him: "In the time it’s taken you to tell me that there is no demand, Steam has sold 45 units."

You can read the rest here. Honestly it’s obvious to everyone except traditional retailers that the future is in digital distribution, and banning Steam-powered games won't change that.


Comments

Re: 1C on Steam v. Retail

Please see: http://en.wikipedia.org/wiki/The_Fox_and_the_Grapes. I think this sums it up nice.

 
Forgot your password?
Username :
Password :

Poll

How do you usually divide up your Humble Bundle payments?:

Shout box

You're not permitted to post shouts.
Matthew Wilsonthe lose of nn would not be good for us, but it will not be good for verizion/comcast/att in the long run ether.04/24/2014 - 2:16pm
Matthew Wilsonsadly yes. it would take another sopa day to achieve it.04/24/2014 - 2:13pm
NeenekoI am also confused. Are you saying NN would only become law if Google/Netflix pushed the issue (against their own interests)?04/24/2014 - 2:10pm
E. Zachary KnightMatthew, you are saying a lot of things but I am still unclear on your point. Are you saying that the loss of Net Neutrality will be good in the long run?04/24/2014 - 2:06pm
Matthew WilsonOfcourse it does I never said it did not.though over time the death of NN will make backbone providers like Google, level3 and others stronger becouse most isps including the big ones can not provid internet without them. they can peer with smaller isps04/24/2014 - 1:54pm
E. Zachary KnightMatthew, and that still plays in Google's favor over their smaller rivals who don't have the muscle to stand up to ISPs.04/24/2014 - 1:45pm
Matthew Wilsongoogle wont pay becouse they control a large part of the backbone that all isps depend on. if verizon blocks their data, google does the same. the effect is Verizon loses access to 40% of the internet, and can not serve some areas at all.04/24/2014 - 1:14pm
Neenekolack of NN is in google and netflix interest. It is another tool for squeezing out smaller companies since they can afford to 'play'04/24/2014 - 12:57pm
Matthew WilsonI have said it before net nutrality will not be made in to law until Google or Netflix is blocked, or they do what they did for sopa and pull their sites down in protest.04/23/2014 - 8:02pm
Andrew EisenGee, I guess putting a former cable industry lobbyist as the Chairman of the FCC wasn't that great of an idea. http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rules.html?_r=204/23/2014 - 7:26pm
Andrew EisenIanC - I assume what he's getting at is the fact that once PS3/360 development ceases, there will be no more "For Everything But Wii U" games.04/23/2014 - 5:49pm
Andrew EisenMatthew - Yes, obviously developers will eventually move on from the PS3 and 360 but the phrase will continue to mean exactly what it means.04/23/2014 - 5:45pm
IanCAnd how does that equal his annoying phrase being meaningless?04/23/2014 - 5:09pm
Matthew Wilson@Andrew Eisen the phrase everything but wiiu will be meaningless afer this year becouse devs will drop 360/ps3 support.04/23/2014 - 4:43pm
Andrew EisenFor Everything But... 360? Huh, not many games can claim that title. Only three others that I know of.04/23/2014 - 3:45pm
MaskedPixelantehttp://www.joystiq.com/2014/04/23/another-world-rated-for-current-consoles-handhelds-in-germany/ Another World fulfills legal obligations of being on every gaming system under the sun.04/23/2014 - 12:34pm
Matthew Wilsonhttp://arstechnica.com/gaming/2014/04/steam-gauge-do-strong-reviews-lead-to-stronger-sales-on-steam/?comments=1 Here is another data driven article using sales data from steam to figure out if reviews effect sales. It is stats heavy like the last one.04/23/2014 - 11:33am
Andrew EisenI love RPGs but I didn't much care for Tales of Symphonia. I didn't bother with its sequel.04/23/2014 - 11:21am
InfophileIt had great RPGs because MS wanted to use them to break into Japan. (Which had the side-effect of screwing NA PS3 owners out of Tales of Vesperia. No, I'm not bitter, why do you ask?)04/23/2014 - 10:52am
RedMageI'm still disappointed the 360 never broke into Japan either. It had a bevy of great RPGs in the late 2000s.04/23/2014 - 9:48am
 

Be Heard - Contact Your Politician