COVID-19 could accelerate the death/shrinking of retail games

[NineConsonants]

We're all seeing the political and business impacts that COVID-19 is causing on a daily basis. It's really hard to predict when things will return to "normal". There's also concerns of it returning in a big wave during the winter since there isn't expected to be a vaccine by then.

Obviously, non-essential stores are going to be significantly harmed by this. But games retail stores seem like they would be especially harmed. It seems plausible that many people will choose to download games instead of risking going to crowded releases for big games if we have not fully recovered by the fall release. The issue will already exist for big releases in the March-May window as well. But these users may get used to the idea of downloading games once they get used to it. We're already seeing a steady growth in digital sales, which implies there isn't a lot of churn. Once people start downloading games, they tend to keep doing so instead of reverting back to physical copies.

How do others feel about these concerns? Seem likely to you?

 

[Ricelord]

I guess if what going in keep up for an year or 2.

 

[cw_sasuke]

Retail games aren't dying anytime soon.
Customers have been used to downloading digital content on their PC or Phones for years....it's not like they are witnessing or experiencing something completly new.

 

[nsilvias]

probably but nah dog

 

[spyroflame0487]

For me at least, its just Animal Crossing. Im still hoping my copy comes from Best Buy as I was having it shipped to home anyways, but if it doesn't, I'll just buy the digital copy. Its more of an extreme situation than anything and just for a specific game I'm excited about.

I still like having physical copies. But...i guess if they were to offer some sort of incentive on going digital vs physical i'd consider it.

 

[Hyun Sai]

Retail games are not dying anytome soon. Retail stores on the other hand will suffer heavily if not subsidised.

 

[Deleted member 23046]

The only difference is that I have ordered by post rather than going by myself to a shop.

 

[Era of not Yakuza]

It may result in a sudden spike of digital sales but I don't see this as the end of physical copies

 

[PucePikmin]

Alternatively, the crush of people people staying home streaming/downloading stuff at non-peak hours could overload Internet infrastructure (it's already kind of happening), so physical games might actually be your best bet. I'm sure GameStop will take a beating, but I bet Amazon sells a ton of physical games.

 

[Igor]

I know it's a hot topic but maybe let's just wait with these hot takes on every aspect of our lives / industries because it's getting really exhausting.

Yes, maybe? Too early to say?

 

[NineConsonants]

Retail games aren't dying anytime soon.
Customers have been used to downloading digital content on their PC or Phones for years....it's not like they are witnessing or experiencing something completly new.

Click to shrink...

Umm, we're starting to see mandates to restrict the kinds of businesses permitted to be open. This is definitely a completely new territory.

 

[elenarie]

Yea, can see that happening. Most of the time, based on my impression, it is a culture and convenience question. Once they get used to the convenience of just being able to download and play, people tend to not go back to getting physical stuff.

It won't be the end, though. Perhaps, instead of the ratio shifting by 5%, it could shift by 10% instead.

 

[maximumzero]

And I'll be clinging on to the bitter end. No sense in giving up any more customer rights than necessary until I'm forced to do so.

Edit: Why ya'll acting like Amazon, Best Buy, Target, Wal-Mart, and all the other retailers are suddenly gonna stop shipping out videogames?

 

[Ænima]

Alot of retail shops are going to end up closing. Not just videogame stores. Some will survive, others dont. The retail shop i usually buy my games, is now offering free shipping if i order the games in they online shop.

 

[NineConsonants]

It may result in a sudden spike of digital sales but I don't see this as the end of physical copies

Click to shrink...

Well the question is more if the long-term impact of this will lead to the acceleration towards retail games dying/shrinking significantly.

 

[Era of not Yakuza]

Well the question is more if the long-term impact of this will lead to the acceleration towards retail games dying/shrinking significantly.

Click to shrink...

Folks that never bought digital before may become new customers for digital storefronts, I can see that happening

 

[cowbanana]

I'd wager that most physical games bought around here are ordered online with free next day delivery, not actually bought in a store.

 

[jblanco]

I'd wager that most physical games bought around here are ordered online with free next day delivery, not actually bought in a store.

Click to shrink...

This. Some companies live off this business model, such as Limited Run Games.

 

[JayVegas702]

Since I'm trying to avoid going out unnecessarily for the next few weeks all my new game purchases will be digital.

 

[Musubi]

Yea, can see that happening. Most of the time, based on my impression, it is a culture and convenience question. Once they get used to the convenience of just being able to download and play, people tend to not go back to getting physical stuff.

It won't be the end, though. Perhaps, instead of the ratio shifting by 5%, it could shift by 10% instead.

Click to shrink...

Yup. I kind of fell into going 100% digital on PS4 by complete accident. I was stuck home with no way to get to the store and wanted to buy inFAMOUS Second Son and that was my first full game digital purchase on PS4. Never have gone back since.

 

[Lifejumper]

Here in the EU its looking like the physical version of FF VII will be delayed because non essential stores are being closed.

Will SE be fine with a digital release here for now? Or are they gonna delay both versions of the game?

Wild times.

 

[Servbot24]

I can easily imagine this shutting down some mom and pop shops, and possibly even being one of the finals nails in the coffin for GameStop.

 

[Deleted member 364]

Agreed OP. And people saying this is temporary... sure. But habits will be formed and people might find they actually prefer digital after trying it.

 

[Ryng™]

well it's at least gonna have an impact

 

[Symphony]

Yeah, you'll end up with a fair number of first time digital purchasers due to this, and it's going to put enormous financial pressure on stores already on the brink. If Christmas comes and goes with people still avoiding the high street due to the virus then I would put high odds on Gamestop and Game going under. And with little to no remaining high street presence that'll accelerate the decline of physical sales.

 

[dreamlongdead]

No, I'm still buying physical.

This crisis will eventually be averted, and it will be business as usual from then on.

 

[Sanox]

Here in the EU its looking like the physical version of FF VII will be delayed because non essential stores are being closed.

Click to shrink...

So far it seems like its 14 days so FF7 would be fine

 

[low-G]

Retail games are not dying anytome soon.

Click to shrink...

Or they may die this year. Who can say.

 

[Niosai]

Not happening. Why do so many people get excited over this idea? It boggles my mind. It would take an immensely long market downturn (many months of people just not purchasing physical goods) for this to happen.

 

[Deleted member 18379]

Hindsight will be very interesting to say the least. Right now there are too many factors at play to say what this will or will not affect. I can't even tell you what next week is looking like. At a brutal estimate of this thing lasting 2 years, I don't think it kills physical sales or interest in physical games; but who knows. That's my opinion. It is very likely though that smaller game retailers and even gamestop never recover from this. Those things aren't representative of how I buy my physical games though so?????

 

[Kerotan]

Big time. Digital sales are going to soar now for months and people will be converted to new buying habits.

 

[Deleted member 3017]

Not sure about physical software taking a dive, but GameStop is almost certainly not going to make it through this.

 

[elenarie]

Not happening. Why do so many people get excited over this idea? It boggles my mind. It would take an immensely long market downturn (many months of people just not purchasing physical goods) for this to happen.

Click to shrink...

Look at it this way. Let's take Sweden for example. The people that buy digital only, won't be affected in any way.

The people that buy physical only, if stores close, will start buying digital. Some of them will return to buy physical, others won't.
Thus you have reduced pool of people.

That pool of people, will lose one of the most prominent gaming stores here in Sweden over the next few months, as Gamestop is closing all stores.
From that reduced pool of people, some will buy from other places, others will switch to digital.

The further reduced pool... And so it goes. It's not a black and white situation, but every time something happens, the pool of people buying physical will be smaller and smaller. The smaller it is, the less physical copies will be manufactured. The less of those are, the less games that pool of people will have to buy... And so it goes.

 

[MysticGon]

Aa long as there are physical console there will be people who want physical games. Corona or various other calamities haven't killed the home video industry. So I think retail games will be fine.

 

[Starlatine]

if the virus remains strong for one or two years death of game sales in any kind is the least thing people should be worried about

 

[OG_Thrills]

I'm still ordering Physical copies from Amazon the only difference is I wash my hands after opening the package and sanitize the case.

 

[Whitemex]

Damn I didn't even think about this accelerating the death of GameStop. Not even Reggie can help

 

[-Le Monde-]

Aren't the majority of physical sales done online?

 

[CaptainBojangles]

Lol you strongly overestimate how many people are going to be buying multiple games in these months

Also noy taking into account the chance of April games straight up getting delayed if they are actually worried about physical sales during that time

 

[henhowc]

You can have games shipped to you though

 

[cowbanana]

Look at it this way. Let's take Sweden for example. The people that buy digital only, won't be affected in any way.

The people that buy physical only, if stores close, will start buying digital. Some of them will return to buy physical, others won't.
Thus you have reduced pool of people.

Click to shrink...

Don't people buy physical games online in Sweden? I don't know anyone who steps foot in a store to pick up a physical game, I personally buy all my PS4/Switch games as physical media with free next day delivery - and I haven't bought a game in a store for more than a decade. There's a large amount of online stores that sell physical games in Denmark alone, that don't have a brick and mortar presence at all. And then there's the UK with Amazon as the huge elefant in the room as well as smaller stores like Base etc. etc.

Physical sales seem quite alive online. Stores are so 90s :)

 

[Zalman]

Personally speaking, I order my games online. It's been years since I bought a game in a brick and mortar store.

 

[Etrian Darkness]

I still have Amazon. But like I haven't bought a physical game in a physical shop in years.

 

[Twister]

Highly doubt it. Went out today to Micro Center to get some parts for a new PC since I'm gonna be stuck at home for awhile, and that place was the busiest I've ever seen it. It doesn't really seem to me like most people are taking warnings seriously. If the government forces stores to close for months, perhaps it could have an impact. But so long as it is "recommended" that people maintain social distancing, most consumers are going to continue buying things at the store

 

[The Praiseworthy]

Have you ever heard of online shopping ?

Besides, the virus will vanish at some point and next gen will start in less than a year or so... gamers who prefer physical copies will continue preferring physical copies, if they don't give a fuck they would have sifted already to Digital.

 

[Niosai]

Look at it this way. Let's take Sweden for example. The people that buy digital only, won't be affected in any way.

The people that buy physical only, if stores close, will start buying digital. Some of them will return to buy physical, others won't.
Thus you have reduced pool of people.

That pool of people, will lose one of the most prominent gaming stores here in Sweden over the next few months, as Gamestop is closing all stores.
From that reduced pool of people, some will buy from other places, others will switch to digital.

The further reduced pool... And so it goes. It's not a black and white situation, but every time something happens, the pool of people buying physical will be smaller and smaller. The smaller it is, the less physical copies will be manufactured. The less of those are, the less games that pool of people will have to buy... And so it goes.

Click to shrink...

That would make sense for a niche product, but gaming isn't exactly a niche hobby anymore. Physical games aren't dying any time soon. Sure, lots of people are going digital but there's still an overwhelming number of people who still buy physical games. Just not enough to support GameStop's shaky business model. It's more of a GameStop issue rather than a physical demand issue. And of the demand for physical is there, I'm sure there will be a shift to someone/somewhere else for physical games.

It reminds me of something. In my wife's home town, 15 years ago they had 2 or 3 GameStops. They're down to 1 GameStop today, but now there's 2 thriving independent game shops. Yeah, this is an anecdote but it's more to support my point.

 

[Neoxon]

I'd imagine that a number of people will go digital, but I doubt it'll bring about the downfall of physical. Personally speaking, I'm gonna stick with physical.

 

[KoolAid]

So far it seems like its 14 days so FF7 would be fine

Click to shrink...

There's no way in hell it's just gonna be 14 days. People are still getting infected left and right, the numbers need to be reduced even further for the restrictions to be laxed (not fully removed). These two weeks are gonna turn into four, potentially six or even eight.

 

[TeHi & BuSp]

All world will change after the CODIV-19 outbreak.

 

[Rosebud]

I don't care about Amazon but it won't help Gamestop and small stores...