Friday, December 19, 2008

Digital Distribution Accounts for Just 6% of Game Sales – Magid

Our latest exclusive research from Frank N. Magid Associates finds that digital distribution has a long way to go. Retail reigns in the game industry for now.

by Mike Vorhaus on Thursday, December 18, 2008

Digital Distribution Accounts for Just 6% of Game Sales – Magid

Even in these high-tech days of the 21st century, most games are still bought the old fashioned way – by driving (or biking) to the local retail store. Just about 60 percent (or just under two-thirds) of console gamers indicate they buy their games at retail stores. And the core gamer demo, males 12 to 34, are even more likely to buy games at retail locations.

Over 20 percent of games are bought used [As also reported by Interpret – Ed.] and this behavior is particularly strong among the 12-24 year old male gamers, who are, understandably quite sensitive to cost (or their parents are cost sensitive!).

Less than 10 percent of games are bought online at a store where the disk is then sent to the consumer offline.

And only six percent have bought a console game online and downloaded it online. This is even more true for the high-tech, early adopter demographic of males 18 – 24. Though one would expect this to grow over time, right now just more than five percent of games are bought online and downloaded online.

It may well be that some consumers are even confused with PC and casual game downloads and this number is lower. But it's safe to assume that this will grow as the ultra-high-tech gaming consumer, who is quite young, moves toward this new distribution model. But for now retail reigns!

— —

Mike Vorhaus is the President of Magid Advisors, a part of Frank N. Magid Associates, a world leader in research-based consultation that has provided strategic insight and direction for clients in 37 countries around the world.

via gamedaily

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