Game Exec Predicts Death of Physical Media
Industry to Transition to Download-Only System
The Chief Executive Officer of a prominent video game company has predicted that the gaming industry may soon shed the CD, DVD and Blu-ray disc for cloud-based services that save both gamers and developers oodles of cash. However, not everyone welcomes that forecast.
During a presentation at last week's Cloud Gaming USA Conference, THQ CEO Brian Farrell predicted that the companies who produce video game hardware -- like Microsoft, Sony, and Nintendo -- would soon dismiss physical media (like discs) in favour of cloud computing options.
For those who aren't familiar with the term, cloud computing refers to Internet-based storage. Imagine the way your email provider (like Yahoo! Mail or Gmail) offers the ability to send and store files online. (Google has a similar and very popular service for spreadsheets and documents called Google Docs.) That frees users from having to store all their data on physical media, like discs or portable thumb drives.
Right now, the best examples of cloud technology in the gaming world are the various online platforms that offer games through download exclusively: for example, Steam for PC, Xbox Live for Xbox 360 and PlayStation Network for the PlayStation 3. However, most of the titles that totally ignore the disc are usually much smaller (and cheaper) than big-name releases like Gears of War 3 or Grand Theft Auto IV.
Nevertheless, it's not hard to imagine a future where download speeds allow gamers to do away with physical media, even when it comes to premium titles like these.
"The box, ship, and done model is transitioning to observe, measure, and modify," Farrell said in his presentation, adding that the gaming industry is now transitioning to "a games-as-a-service model where direct consumer feedback allows the ability to operate in this always on, always connected environment."
Of course, economics will motivate this transition. Despite the fact that the gaming industry is continually growing, many game developers are struggling in this current recession. One controversial solution of late has been to essentially force consumers to buy new rather than used copies of games by including one-time passwords that allow access to bonus (but in many cases, necessary) content.
Given that it costs game companies millions of dollars to produce and ship physical media to retailers, doing away with that process could help many developers and publishers survive. Theoretically, that may also lead to more and better games in the future.
Of course, many gamers are concerned that this plan will hurt the less affluent player. "BAD, BAD, BAD IDEA!" said Gamespot commenter Double_Wide. "You cater only to the part of your market that has consistant (sic) and reliable internet access but neglect the other less fortunate!"
My two cents? Farrell's probably right -- too many developers are struggling too much right now, and if cloud-based gaming saves them money, a transition to this system is inevitable. Of course, making that change will only be profitable when enough gamers have access to sufficiently quick Internet connections, meaning we likely won't see the death of physical media for at least a few years.
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