GameStop Boss: Disc-Based Games Are Here To Stay
Many gaming executives, including Microsoft's Robbie Bach, believe the next generation of consoles won't support physical media.
But some industry bosses believe digital and physical will continue to coexist. GameStop chief executive Paul Raines is one of those people, as he informed Fortune in a new interview.
In fact, he thinks discs will continue on forever:
"Disc-based games will be around forever. The market has seen physical music sales down 50% from its peak and physical movie sales down 60% from its peak, but even in a doomsday scenario, disc-based games will be around for a long time.
I see a complimentary business where we sell discs plus download like the current console mode. Virtual reality games will also likely follow this model."
Of course, GameStop will need to increase its digital business and they've taken strides in that direction. Thanks to the sale of DLC and download codes (among other things), the retailer has "a pretty healthy digital business," according to Raines. In fact, GameStop expects to earn over $1 billion in that area this year; in the past year, it grew 11 percent.
Well, let's hope discs stick around. Real collectors will still need them. By the way, if you need some work this holiday season, GameStop is hiring 28,000 temporary employees.
9/30/2015 11:17:22 AM Ben Dutka