This document discusses the different modes of video game distribution and how technological convergence has impacted the video game industry. The two main modes of distribution are physical media, which involves purchasing packaged games from retailers, and digital media, which allows games to be downloaded online. As consoles have become connected to the internet, digital distribution has increased while physical retail sales have decreased. This has lowered production and distribution costs for game publishers. However, retailers still control a majority of sales and can pressure publishers to release games through physical stores. Technological convergence has also increased competition among distribution platforms.

1. DISTRIBUTION
Red Dead Redemption

2. Browsing on www.mcvuk.com
Same producer as RDR

4. This graf shows how the physical media distribution is
decreasing, while the digital media is increasing. This is due
to technical convergence.

5. Article:
«The price of digital»
• It costs less to buy games from Tesco than it does
via Steam.
• Digital prices don’t drop as quickly as physical.
• GAME cut Skyrim’s price to just over £22 before
Christmas, over digital platforms it held its £34.99
RRP.

6. Comparing prices
There is a difference in £11 from cheapest to most expensive when buying
Fifa Street. The cheapest is from ‘Simply Games’, and is probably so because
the distributor specialises in games, and does not have many other
expences as it is only an online shop. Asda on the other hand offers a range
of different products, and is also selling the game in store, and will therefor
also have more expences to cover. For example getting the game to the
store and pay the wages of the workers in the store.

7. The prices for Mass Effect 3 for Xbox 360, also varied a
lot in price. In many cases the price was higher if there
was extra content with the game.

8. The prices for Wii Fit were pretty simialar everywhere, except for at
iwantoneofthose.com. In the information about this retailar, it says ‘hard to shop
for people’. This might indicate that the site is not very seriouse or customer
friendly, and maybe saves some expences on that.

9. RDR
The cheapest way to get hold on a copy, is to buy the pre-owned one.
Here, the money only goes to the retailar, not the producers and developers
of the game.
Other than that, the price range is not very wast. There is about a £5
difference, the higher the price – the more validity in name of retailer.

10. Recent advancements in connective technology included within game
consoles has had an impact on modes of game distribution. What are
the different modes of distribution and what impact has this
technological convergence had for the various console game
institutions, retailers and audiences?
There are two main ways to distibrute video games.
1. Physical media: where you have an actual object – a plastic
box, a printed cover and the game disc itself. This physical
media is purchased from a range of retail outlets in a pre-
packaged form.
2. Digital media: Complete gaming software downloadable
from online stores.
The distribution of the physical media objects happen in retail
stores, such as Game and Gamestation (niche shops), Argos,
HMV and WHSmiths (general entertainment stores), and
supermarkets such as Tesco and Asda. In most cases the
comsumer can decide to order the game online or buy it in
store.
Digital media is distributed through the platform stores.
Playstation Store for Playstation and PSP owners, Xbox Live
Marketplace for Xbox owners, Direct2Drive , for PC owners,
Steam for PC and Mac owners and Mac App Store for Mac
owners.

11. The increace in technical convergence of the platform,
especially the fact that they are all now connected to the
internett, has had a huge impact on the distribution of the
products. In 2008, 90% of all games were sold by retailars,
but in 2011 40% were sold online. The fact is that, with
online distribution, there are far less post-production
expences which should make the price of the game lower.
All the clear advantages of online distribution suggests that
it has come to stay.

12. But the retailers should not be forgotten just yet, as the
majority of sales still go through them. They are
therefore in the position to threaten the producers to
not realase the games to digital distribution, if the
games are to be distributed in the stores. Still, the big
retailer ‘Game’, have had to close down many shops
in spring 2012, because of bankruptcy.
As for the impact the technical convergence has on
the platform, it creates greater competition. For
example now that the App Store has started selling
complete games, Apple is in the position to pressure
game producers and developers into releasing the
game to Mac before it is realeased to PC.