Capcom: Packaged Media Keeps Sliding, DLC Is The Future
Like it or not, the digital revolution is upon us and packaged media is on the wane.
Many analysts have predicted that eventually, the majority of all video games will be delivered electronically (much to the chagrin of long-time collectors). And Capcom says the shift is currently in full effect; the publisher anticipates a "severe contraction" of the physical media market.
As the company stated in their 2013 Annual Report, it's time for gamers to accept "rapid changes."
"Analyzing the consumer market by platform, we forecast severe contraction in the package market, which is expected to shrink by $5.3 billion in 2017 (down 28.8 percent from 2012). At the same time, we forecast significant growth in the DLC market by $7.8 billion (up 109.9 percent)."
Capcom said the packaged market was worth $18.4 billion in 2012, which was down 17.9 percent year-over-year, and it was the fourth straight negative year. As a result, Capcom will allocate management resources to digital content so they be guaranteed of "sufficient earnings." Company president and COO Haruhiro Tsujimoto said that in the future, they'll be focusing more on DLC:
"But now, even after game sales, the provision of digitally distributed content (DLC) facilitates longer enjoyment of each title, resulting in a business model with the potential for earnings on a continuous basis."
It appears to be a logical response to the current situation, despite the fact that many hardcore gamers won't agree. Unfortunately, the bottom line is that most mainstream/casual gamers couldn't possibly care less about discs and boxes. Yes, we're a dying breed.
9/10/2013 9:32:14 PM John Shepard