GameFly is a video game service very similar to Netflix before their digital distribution model, offering media content (video game discs) straight to your door with a prepaid envelope for return to their distribution centers. Subscribers can hold on to the games for any length of time as long as the subscription is kept active.
The move by GameFly is very similar to GameStop’s recent news, acquiring a business that deals with digital distribution. By offering this service, it can increase the company’s revenue and drive profitability.
Much like other digital distribution models for video games, Direct2Drive incorporates digital distribution for Macs and PCs. It seems like more and more gaming distributors/retailers are focusing on digital distribution. Another computer game streaming service, OnLive, does not offer a download service but rather game “rentals,” and purchasing services.
Standard retailers and digital distributors are seemingly scrambling to figure out where the digital/physical retail space is heading as consumer tastes shift to social experiences, lower prices, and lighter loads on the desktop/notebook/mobile device. With GameFly moving into the digital distribution space, GameStop moving into the digital and on-demand space, Steam investigating the mobile space, and Nintendo gearing up to launch a new console, 2011 and 2012 looks to bring a huge wave of change in how gamers consume their favorite titles. (http://www.tomshardware.com/news/GameFly-Direct2Drive-IGN-GameStop-OnLive,12791.html)
As I continue to research this industry, I am starting to think that I may need to approach a company with my business plan once it is complete. There is still no discussion on streaming console games wirelessly through your specific console. Most of these models seem to be based on computer games. Fortunately, for what I am developing, we will be able to push technology even further.
In June, I am scheduled to meet with the Sr. Director of Global Content Operations for Napster. I will most likely document my interview with her here. I also hope to discuss digital content and the possibilities for the gaming world. This business plan is looking more and more like a solution.
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