Though retailers like GameStop and industry analysts like EEDAR's Jesse Divnich remain measured in their observations of the rise of digital distribution and its impact on the future of brick-and-mortar video game retail (Divnich told GameSpot that, while digital distribution remains a continued and growing threat to physical retail, he believes there will always be room for one mass-market specialized game retailer), some key players in the video game publishing world have been less confident about game retailers' ability to survive.
In August this year, EA Games executive vice president Patrick Soderlund acknowledged that though the majority of revenue in the industry still comes from packaged goods, the future will see distribution via brick-and-mortar retail outlets lose viability "sooner than people think". Specifically, in less than ten years time, according to Soderlund.
Clearly stating that his comments were personal and not those of EA as a whole, Soderlund said that he believes the new generation of gamers may not have the same enthusiasm for collecting physical games as previous generations.
EA, whose digital business reached US$1.2 billion in its most recent fiscal year, remains convinced that the lion's share of its revenue will soon stem from digital products. Earlier this year, EA COO Peter Moore stated that though the publisher will never abandon physical media while there is still consumer demand for it, its digital revenues could be just two to three years away from surpassing its boxed gaming business.
The rise of digital has also kept other game publishers in high spirits. In March this year, Ubisoft posted its full-year financial results showing a return to profitability thanks to a doubling of its digital and online sales, a 111 percent jump year-on-year.
Earlier this year, Codemasters cofounder David Darling took things a step further by saying the next-generation of consoles must embrace a digital-only future or face extinction. Darling pointed to digital distribution as a model that gives publishers access to a "worldwide marketplace", while side-stepping the often-expensive processes involved with the distribution of boxed games.
"Sony and Microsoft cannot let the retailers dictate game prices going forwards if they want to break free from the current over-priced model," Darling said. "If hardware manufacturers do not manage this transition soon, they will be overtaken and left behind by companies who are embracing digital distribution wholly and completely. Companies like Apple and Google are not tied to brick-and-mortar retailers with shackles, and are not being held back by them."