How much longer before digital sales outstrip retail sales in the gaming industry?
Some say not for a while, but Electronic Arts COO Peter Moore says it'll only take two more years. Speaking in a keynote conversation with ESA boss Mike Gallagher at the Digital Entertainment World Conference (as summarized at GI.biz ), Moore addressed the rise of digital delivery.
Right now, publishers use a blend of physical and digital, and the recently released consoles create a "tremendous competitive environment, which ultimately benefits the market." However, Moore believes mobile gaming is on the rise and digital revenues will surpass that of physical game sales in only two years. And if we want to survive the upcoming transition (a transition from which the music industry has yet to recover), gaming must embrace "creative destruction."
Moore said the online environment has been "incredibly valuable to EA" in building customer relationships. The bottom line is that EA's customers used to be retailers but now they're cutting out the middle man, and the customer is the gamer. It changes everything. Social media is another critical aspect of the future of the industry.
Yeah, things have changed. And that's probably the biggest understatement I've ever made.