The amount of packaged games sold at stores drop over the last three years leading technology experts to believe 2017 is going to be the end of the video game industry as we know it. Instead of retail shops, customers are choosing online outlets because of convenience, accelerated internet speeds and greater storage capacity on gaming consoles. Experts predict that eventually, 100% of games will be available for downloading and streaming. Companies such as Microsoft for example now offer a program where Xbox One owners can pay $10 per month to have unlimited
access to over 100 Xbox One and backward-compatible Xbox 360 games, making it very difficult for stores such as Gamestop to compete. This shift from retail to online shopping is not only in the video game industry as this trend has can noticed in almost every industry across the board. Even grocery stores such as Meijer now offer a delivery service where all you have to do is pick out your groceries online and they will be delivered right to your door. In your opinion, does eCommerce success mean physical retail stores will disappear in the future?
https://www.thestreet.com/story/14022467/1/it-s-the-beginning-of-the-end-for-packaged-video-games-here-s-how-you-can-tell.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo
Interesting! I don't see them disappearing altogether for quite some time, but I do wonder how this will affect the labor market in the long-run.
ReplyDeleteI am not sure if eCommerce will replace all retail stores for quite some time: especially in less urban areas. Although maybe if other places adopt Amazon's drone delivery techniques we will see a further recession of physical store fronts.
ReplyDeleteHowever, the fact that GameStop and similar stores are going out of business does not surprise me in the least. We saw this trend in movie rental stores like Hollywood Video a few years ago. As the world becomes more tech-oriented, online services like gaming and movies will always win out simply because of convenience.
I agree with Nick. This immediately brings Blockbuster to mind and how Netflix disrupted the industry. Some physical retail stores may die in the future but if they can integrate technology then they can save themselves. A common example we are seeing today is the integration of curbside delivery l.
ReplyDeleteI think Nick brings up a good point about this shift from retail to online being dependent on geographic locations. For example, people in NYC have already transitioned to online stores and at-door delivery systems for their groceries. But it's physical locations from which the goods are coming from, so I think store owners just have to realize what method of delivery would work best for where they are located.
ReplyDeleteI think the success of eCommerce will lead to a lot of physical retail stores closing due to a lack of customers. Today, we see a lot of companies such as Barnes&Noble and Best Buy shifting towards eCommerce to accommodate the consumer. I think that the advancement and success of eCommerce is hurting a lot companies and shifting their focus towards online shopping.
ReplyDeleteThis also made me think of the blockbuster & Netflix example. I wonder if this push for eCommerce is going to open doors for new innovative stores to take over much like Netflix did.
ReplyDeleteI would say so for the video game industry unless like everyone is saying, they adapt to the changing environment. This doesn't surprise me because of growing gaming services like Steam. Steam has adapted to now having its own capability of streaming games on a TV. Unless, GameStop and other video game retail stores adapt to the convenience that gaming services provides, the retail stores will keep taking a hit. However, stores like GameStop are already utilizing mobile apps to view their products so it'll be interesting to see what kind of new services they will offer next.
ReplyDeleteI feel like this is somewhat reminiscent of the music industry and how they largely became digital. Clearly there are still people with record players, CD player, and etc... so I expect to continue to see gamers with physical copies of games, but the majority of the market is surely going to transition.
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