Feature: Top 5 Reasons Digital Distribution Sucks

Yup... thats about how it works.

Yup... that's about how it works.

Digital distribution is a hot topic these days. All forms of digital media are starting to make a move toward being distributed solely online with no physical retail presence. This generation of consoles has ushered in a new wave in digital distribution in games, and the PC market’s been doing it for even longer. Up until this year’s E3, most digitally distributed gaming content came in two flavors: downloadable content such as maps, weapons etc., or bite-sized “arcade” titles that are sold on the Xbox Live Marketplace, Playstation Network, and WiiWare. That’s all changing now that Microsoft has introduced their new games on demand service. We are beginning to see the shift away from the physical retail space to the digital online marketplace, and this can only mean bad news for video game consumers. Here are 5 reasons that irrefutably prove that digital distribution is not a good thing.

5. No Physical Copies

I’m assuming that if you’re reading this, you have a pretty sizable video game collection. You probably have them all ordered nicely in some order which is most convenient to you; all of your games nice and neat, sitting in a row on a shelf somewhere. Well, just imagine if somebody started taking those games away one by one until you had none left.

That analogy obviously isn’t perfect. With digital distribution you will still be able to play your games, you just won’t own any tangible, physical product that you can show off to all of your friends. The amount of games you own in your massive collection that stretches all the way back to the Atari 2600 is now relegated to a number on a server somewhere.

Not only are your game discs/cartridges gone, but so is all of that beautiful cover art and the delightfully useless manuals, because there’s no need to package a product which is distributed through digital channels.

Some people may be able to live without any sort of physical indication that they own a game, in fact, some people will probably prefer it for the space saving convenience that it provides, but there are plenty of people, myself included, that find the whole idea a bit unnerving. Plus, you don’t get to experience that new game smell anymore.

4. Digital Games Do Not Cost Less Than Their Physical Counterparts

Youll need at least this much.

You'll need at least this much.

Now, you might be thinking “I can live without physical products as long as it’s going to save me some money,” but, the truth is, it’s not. It might make sense that, since publishers don’t have to package the products or make any discs, you would see some savings because of this. But that’s clearly not the case. Perusing the Steam catalog, I notice a distinct lack of actual discounts. Sure, Steam has deals almost every week, but those aren’t permanent and they don’t usually apply to new releases. The majority of games which have just been released or are available for pre-order cost just as much as if you bought the game at a retail outlet.

And guess what? It’s not just the packaging which companies no longer have to pay for. Read this quote about how consumers have to provide their own bandwidth and physical media from MediaLoper to see just how much we’re getting screwed:

If you burn your music to a CD, you provide the blank disks. When you download a movie, you supply the bandwidth. Media and bandwidth are roughly equivalent to what the entertainment industry calls “manufacturing and distribution”. Those are costs that used to be fronted by media companies and built into the price of their products. In the era of digital downloads consumers are now bearing the costs of manufacturing and distribution. Meanwhile media companies are still including those costs in the price of their digital products. You could argue that Apple and Amazon are providing bandwidth as well – and while that’s certainly true, the media companies are still benefiting from the fact that someone else is paying for the transfer of bits.

That’s just dandy.

3. No Internet Connection? No games!


So say the end of the world is upon us and you suddenly lose power. There’s no electricity to run your console on, so, like any good gamer, you whip out your shiny new handheld to play some games before the Rapture. Well, you can’t ride out the end of the world on your handheld because you have no internet connection. So that PSP Go!, or DSiWare game that you wanted to play will have to wait.

Digital distribution is dependent in the utmost on an internet connection. If you lose that connection for whatever reason, your console will not be able to authenticate your purchase with the server and you will be unable to play your game. In addition, without an internet connection you most certainly won’t be able to purchase any new games either.

2. Hope You’ve Got Time to Wait for that Download


It’s release day for Grand Theft Auto 8 and you’re pumped to start playing as soon as possible, so you sign in to your digital distribution console to go purchase the next highly anticipated entry in the GTA series, the system takes your money and your download starts, the game is at your fingertips, you’ll be playing in… 3 hours? That’s the current average for Xbox Original titles downloaded through the Xbox 360 Dashboard. And those are last-gen, non-HD games. Point is, waits are going to be long.

Not only do you have to worry about the file size and the speed of your internet connection, but you have to take into account the amount of people downloading the title at the same time as you. The more people downloading, the more stress that puts on the server, and the longer it takes for you to download your game. Just imagine the millions of people that want to download that new GTA on launch day and the amount of problems that would spring up because of the massive amount. It would just be a mess filled with horror stories of not only ridiculously long download times, but people not being able to buy the game at all or buying and downloading but then not being able to play because the servers went down.

1. The Technology Just Isn’t There Yet

Well... you see... according to the chart...

Well... you see... according to the chart...


You may have noticed a theme with the last two entries in this list: technological problems abound with digital distribution. In addition to the two problems previously listed, networking technology has not reached the point where wide-scale digital distribution is possible.

Foremost, internet penetration is not very high throughout the world. The world average internet penetration is a measly 23.8%, and only 47 countries have an internet penetration higher than 50%, with the United States coming in at number 13 with 72.3% (Source).

And that’s internet penetration in general, it still includes those poor saps stuck with dial-up. Digital distribution will require high-speed internet access, and the broadband penetration in the U.S. currently sits at 60%, or 20th in the world (Source).

As impressive as those figures may seem to you, they are not enough for wide scale digital distribution to be feasible. The internet backbone in the United States (and the rest of the world), including download speeds as well as penetration, needs to catch up before digital distribution becomes a convenient reality.

Author: Ryan
Sunday, August 9th, 2009 Features

10 Comments to Feature: Top 5 Reasons Digital Distribution Sucks

  • Cody says:

    Of all the problems you listed, I don’t really see any of them making any sort of legitimate argument as to why “digital distribution sucks”.

    I’d gladly do away with scrounging around for discs when I could just browse my digital catalog. Not to mention, I could still go out and buy certain physical games if they were that special to me.

    And while it’d be great if developers cut the cost of manufacturing and distribution out for me, it’s not like I’m paying more for a digital game.

    The internet connection is more of a DRM issue. If you’re allowed to just download your game and play then you’re good. It’s only when they require an internet connection for anti-piracy measures that it becomes an issue.

    You can pre-load games before launch on steam. So yes, you can play that spanking new GTA game the second it releases.

    Penetration will only get deeper. And for those already being penetrated, everything’s fantastic.

    So there, your argument sucks. And it was boring too. Was that the driest topic you could think up?

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    • Lollerskates says:

      “Scrounging around for discs?” Wut? Do you have them like, in a pile out of their cases or something? Digital catalogs aren’t more convenient to file through – that’s a terrible argument unless you’re just insanely irresponsible with your games.

      So because you’re not paying more, it’s alright that you’re receiving less? Wut?

      “The internet connection is more of a DRM issue. If you’re allowed to just download your game and play then you’re good. It’s only when they require an internet connection for anti-piracy measures that it becomes an issue.” — This just makes no sense at all… you should see all the problems this causes with DLC alone for users that have to use an internet connection to download content, only to find out upon returning home or wherever that they can’t use it. It is a big deal, and your response doesn’t make any sense because anti-piracy measures are inevitable.

      You can also pre-order games to be delivered on day of release. So you can be playing that spanking new GTA game the day it releases (and honestly, if the release day isn’t good enough – you’ve got some interesting issues).

      There’s some brief and disturbingly obvious problems with your arguments. Why do I get the feeling there’s something else to this…

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      • Ryan says:

        I’d just like to note that I was writing my response as David posted his, so if you notice any redundancies between the two replies, that’s probably why. Plus, I copied his style of argument anyway, because I thought all I was gonna get from him was “I agree with Ryan 100% on everything.”

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    • Ryan says:

      “Not to mention, I could still go out and buy certain physical games if they were that special to me.”

      No. Why would you think that? I suppose in the transition to digital distribution that might be the case, but once we’ve made the switch it no longer will be.

      “And while it’d be great if developers cut the cost of manufacturing and distribution out for me, it’s not like I’m paying more for a digital game.”

      Of course. Just because we’re not paying more, we shouldn’t complain. /sarcasm Strange logic coming from somebody who thinks games should never have increased to $60 in the first place.

      “The internet connection is more of a DRM issue. If you’re allowed to just download your game and play then you’re good. It’s only when they require an internet connection for anti-piracy measures that it becomes an issue.”

      I agree, but, honestly, I don’t really see any way around this. Console manufacturers will use DRM to lock you into their platform. I suppose I could have made this a more general objection to how you will be locked in to a certain device.

      “You can pre-load games before launch on steam. So yes, you can play that spanking new GTA game the second it releases.”

      Was not aware of this, but was considering it a possibility while writing. Still, bandwidth congestion on launch day is still a valid concern.

      “Penetration will only get deeper. And for those already being penetrated, everything’s fantastic.”

      I’m not saying that penetration and speeds won’t increase, just that, as of today, digital distribution is not a feasible way to get games to consumers, and console developers especially should wait to implement it. The PC is another story though.

      “Was that the driest topic you could think up?”

      Yes, I had a whole list of topics, I sorted them from most to least dry, and this one ended up on top. The other ones were just too wet, would’ve been too much of a mess to deal with.

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      • Cody says:

        Lol. You gotta watch out for those wet topics, especially with all this electrical equipment around! But on to the counter-argument.

        DD will never completely replace physical media. Every other medium has shown this. So yes, if a game is that special, I can go buy the physical copy.

        Yeah, the price thing sucks. I don’t want to be paying more. But at the same time, I pay for the game, not the box art. So I don’t feel like I’m getting less for more. If anything, I’m paying for the convenience of not having to get up and put a disc in my 360 every time I want to switch a game.

        And David, my games are very organized. What I was complaining about is the fact that every time I want to play a different game I have to get down on my knees and search through my collection for said game. It would be much easier to just turn on my box and click on the game.

        As for the DRM, I suppose I’ll concede that there really isn’t a way around it. I mean, there are forms of DRM that don’t require a constant internet connection, but they seem to be less and less utilized these days. I just wish publishers would stop the futile fight against piracy and have some faith in their loyal customers. It’s like the war on drugs.

        I do think there are ways to ease launch day bandwidth congestion. Perhaps have registrations to pre-load on certain days so it’s evenly distributed before launch. Also, legitimate torrent sites could vastly ease server stress in this situation. I’ve heard a lot of conversation lately (what with PB being purchased and all) about developers hooking up with torrent sites as a form of grass-roots distribution. Sounds like a great idea.

        Yeah, I don’t think anybody expects DD to become the dominate distribution form any time soon. Doesn’t mean it shouldn’t play a significant role though.

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        • Ryan says:

          “DD will never completely replace physical media. Every other medium has shown this. So yes, if a game is that special, I can go buy the physical copy.”

          I don’t see how this has been shown in all other media. Just because music and movies are still available in stores does not mean that retail has won out over digital distribution; it just means that we’re still transitioning. It’s not like movies and music have had access to digital distribution methods longer and they tried to use it and failed. All of these media have been around before DD and are now today experiencing the transition. One day soon the transition will be complete and your digital media will not be available in a physical incarnation.

          “If anything, I’m paying for the convenience of not having to get up and put a disc in my 360 every time I want to switch a game.”

          So what exactly are you paying for? Allowing the manufacturer to use less resources? Regardless of the convenience, if it’s costing the company less to distribute, then you should see some discounts. Convenience is a good thing, sure, but in this case it’s costing the manufacturer less to offer you that convenience, so there’s really no reason you should have to pay for it.

          Using torrents (or some sort of peer to peer technology) as a way to distribute games and ease bandwidth congestion? Great idea, indeed. Didn’t even consider it.

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          • Cody says:

            Dude, if itunes can’t kill physical media, nothing will. It will always exist in some form, even if it becomes the minority of the market. It’s just naive to assume DD will completely overtake it.

            And as I’ve said before, it’d be great to get that discounted price, but realistically, developers have no reason to discount it when the market price has been set. They’ll change it when ppl stop buying full price DD games. Your argument doesn’t prove that DD “sucks”. It’s no worse than physical media. It just proves that it has the potential to be better than physical media but until supply and demand erase the distribution costs, then it’s equal.

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            • Ryan says:

              Why is it naive to assume that, when the means are available, that digital distribution will not overtake physical media? I think it’s naive to assume otherwise. Setting the technological reasons aside, the other major roadblock for digital distribution is the type of society we live in. That is to say, there are plenty of people out there that grew up buying their records, tapes, and CDs in stores, and they just aren’t comfortable with digital distribution, so they create a market for physical media. However, those people will die someday and a new generation will arise that was brought up mostly on digital distribution, thus the market for physical media goes away. I will grant you that a small minority niche market may still exist for physical media, but it will most likely be the same size of the market that records have today.

              About prices. Sadly, I think you’re right, but it is certainly a reason why digital distribution sucks. It sucks that we have to pay more for less because of digital distribution, therefore digital distribution sucks for at least one reason.

              The title of my article was chosen for its hyperbole and bluntness though, and it clearly isn’t precise enough to convey my actual message, which is to say that digital distribution is not ready for mass market and has a long way to go, but that’s not nearly as succinct.

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  • Lollerskates says:

    I agree with Ryan 100% on everything.

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