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 :

Shout box

You're not permitted to post shouts.
Andrew EisenAnd again, you keep saying "accountable." What exactly does that mean? How is Gamasutra not accounting for the editorial it published?07/28/2015 - 11:47pm
Andrew EisenMatt - I disagree with your 9:12 and 9:16 comment. There are myriad ways to address content you don't like. And they're far easier to execute in the online space.07/28/2015 - 11:47pm
Andrew EisenMatt - Banning in the legal sense? Not that I'm aware but there have certainly been groups of gamers who have worked towards getting content they don't like removed.07/28/2015 - 11:45pm
DanJAlexander's editorial was and continues to be grossly misrepresented by her opponents. And if you don't like a site, you stop reading it - same as not watching a tv show. They get your first click, but not your second.07/28/2015 - 11:40pm
TechnogeekYes, because actively trying to convince advertisers to influence the editorial content of media is a perfectly acceptable thing to do, especially for a movement that's ostensibly about journalistic ethics.07/28/2015 - 11:02pm
Mattsworknameanother07/28/2015 - 9:16pm
Mattsworknameyou HAVE TO click on it. So they get the click revenue weather you like what it says or not. as such, the targeting of advertisers most likely seemed like a good course of action to those who wanted to hold those media groups accountable for one reason07/28/2015 - 9:16pm
MattsworknameBut, when you look at online media, it's completely different, with far more options, but far few ways to address issues that the consumers may have. In tv, you don't like what they show, you don't watch. But in order to see if you like something online07/28/2015 - 9:12pm
MattsworknameIn tv, and radio, ratings are how it works. your ratings determine how well you do and how much money you an charge.07/28/2015 - 9:02pm
Mattsworknameexpect to do so without someone wanting to hold you to task for it07/28/2015 - 9:00pm
MattsworknameMecha: I don't think anyone was asking for Editoral changes, what they wanted was to show those media groups that if they were gonna bash there own audiance, the audiance was not gonna take it sitting down. you can write what you want, but you can't07/28/2015 - 8:56pm
MattsworknameAndrew, Im asking as a practical question, Have gamers, as a group, ever asked for a game, or other item, to be banned. Im trying to see if theres any cases anyone else remembers cause I cant find or remember any.07/28/2015 - 8:55pm
Andrew EisenAs mentioned, Gamasutra isn't a gaming site, it's a game industry site. I don't feel it's changed its focus at all. Also, I don't get the sense that the majority of the people who took issue with that one opinion piece were regular readers anyway.07/28/2015 - 8:43pm
MattsworknameDitto kotaku, Gawker, VOX, Polygon, ETC07/28/2015 - 8:41pm
MechaTama31So, between pulling a game from one chain of stores, and forcing editorial changes to a media source, only one of them strikes you as being on the edge of censorship, and it's the game one?07/28/2015 - 8:41pm
Andrew EisenHave gamers ever tried to ban a product? Can you be more specific? I'm not clear what you're getting at.07/28/2015 - 8:41pm
Mattsworknamethey should have expected some kind of blow back. But I didn't participate in that specific action07/28/2015 - 8:41pm
MattsworknameAndrew Youd have to ask others about that, I actualyl didn't have much beef with them till last year, so I can't speak to there history. I simply feel that gamesutra chose politics over gaming and chose to make enimies of it's prime audiance. For that,07/28/2015 - 8:40pm
Andrew EisenI'm still not clear on how Gamasutra was lacking in accountability or what it was lacking in accountability for.07/28/2015 - 8:38pm
MattsworknameAndrew: You and I agree on most of that. I don't diagree that there should ahve been other actions taken. Now, I do want to point something out, casue Im not sure if it's happened. Have gamers ever tried to have a product banned?07/28/2015 - 8:37pm
 

Be Heard - Contact Your Politician